Printer Friendly

Ortac Resources to Acquire African Gold Miner Casa Mining.

M2 EQUITYBITES-November 10, 2017-Ortac Resources to Acquire African Gold Miner Casa Mining

(C)2017 M2 COMMUNICATIONS http://www.m2.com

10 November 2017 - UK-based exploration and mine development company Ortac Resources Ltd (LSE: OTC) has entered into a binding agreement to acquire an additional 33.82% of the issued share capital of African gold miner Casa Mining Ltd (LSE: RNS) and will be making an offer for the balance of the issued share capital of Casa, the company said.

Ortac has also agreed, subject to closing of the acquisition and simultaneous with closing of the acquisition, to convert the USD 2m convertible loan note previously issued to the company by Casa at an amended reduced share conversion price of USD 0.5586.

Following the acquisition and conversion of the loan note, Ortac will hold 7,848,594 shares of Casa, representing 70.09% of the issued share capital in Casa, before an offer to acquire the remaining issued share capital from the minority shareholders of Casa.

This acquisition represents a major step forward in the delivery of the company's revamped strategy, announced on 11 September 2017, to focus on its high potential African exploration mining assets.

The Ortac board believes the acquisition of Casa presents a valuable near term opportunity for Ortac and its shareholders with recent drilling results indicating a potential gold resource in excess of 2 m ounces.

Ortac has contractually committed to acquire 33.82% of the issued share capital of Casa). The consideration for the Sale Shares is to be satisfied by the issue of 38,277,354 new ordinary shares of no par value in Ortac at a deemed price of 2.875 pence per share, being the closing mid-market price of Ordinary Shares on 3 November 2017 and is to be settled once the acquisition of the Sale Shares has occured.

Closing is conditional, inter alia, upon Ortac making an offer to purchase the remaining shares in Casa (not currently held by Ortac) on the same terms as the acquisition of sale shares.

Casa is a private Mauritian registered company that is the 71.25% owner and operator of the Misisi Gold Project located in South Kivu, eastern DRC, approximately 350km south of Bukavu and 180km north of Kalemie.

The Casa licence holdings consist of three contiguous mining licenses (133km2), issued in March 2015 and valid for 30 years.

These licenses, which encompass a 60km strike length of the Tanganyika graben within the Rusizian belt, include the Akyanga deposit along with the Lubitchako, Tulongwe, Kilombwe and Mutshobwe prospects (targets).

Over the last six years over USD 30m was spent developing these licenses. In addition to the regional geophysical surveys completed over these license areas in 2011, Casa have carried out 19,522m of diamond drilling, 2,720m of reverse circulation drilling and excavated 6,274 line metres of trenches on their respective licenses.

At Casa's most advanced project, the Akyanga deposit, SRK has reported a Mineral Resource within a USD1,200/oz gold selling price and 0.5 g/t Au cut-off grade optimised pit shell.

This comprises an Inferred oxide gold Mineral Resource of 5.5 Mt at a grade of 1.5 g/t Au for approximately 272 koz of contained metal. SRK has further reported an Inferred transition gold Mineral Resource of 16.2 Mt at a grade of 1.8 g/t Au for approximately 927 koz of contained metal.

MDM, in conjunction with SRK, completed a scoping feasibility study for the Akyanga deposit resulting in an ungeared NPV and IRR of USD171m and 35% respectively at a USD 1,300/oz gold price. This assumes a contract mining scenario with an initial capital cost estimate of USD 87.4m and a total operating cost of USD 628/oz.

Following the internal workshop and the non-code compliant updated resource estimate of over 2.3 Moz of gold produced by CASA's independent experts, it is currently reviewing its strategy and weighing up its options in developing its Missisi project.

((Comments on this story may be sent to info@m2.com))
COPYRIGHT 2017 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2017 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 EquityBites (EQB)
Date:Nov 10, 2017
Words:679
Previous Article:Raven Russia to Acquire Moscow Logistics Park.
Next Article:Oakley Capital Investments Fund to Acquire German Higher Ed Provider Career Partner Group.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters