Leyshon Resources Limited Quarterly Activities Report (5812D)
January 30 2015 - 2:00AM
UK Regulatory
TIDMLRL
RNS Number : 5812D
Leyshon Resources Limited
30 January 2015
LEYSHON RESOURCES LIMITED
30 January 2015
Quarterly Report December 2014
Leyshon Resources Limited (AIM/ASX: LRL) ("Leyshon" or the
"Company") activities during the quarter primarily focused on the
proposed transaction with International Tungsten Services
Limited.
International Tungsten Services Transaction
On the 20 November 2014, the Company signed a Heads of Agreement
for a proposed transaction to acquire a 50.1% interest in
International Tungsten Services Limited ("ITS"), a private Korean
company. In return for its 50.1% interest in ITS, Leyshon Resources
would provide management and corporate expertise, arrange funding
of US$13.5 million for the on-going development of the project, and
provide an initial unsecured loan of US$500,000 to ITS. The loan
was to provide working capital and on an interest free basis and be
and repayable in 12 months.
Subsequent to the end of the quarter, the Company wishes to
advise that it is no longer pursuing the transaction with ITS due
to a number of factors including declining tungsten prices and the
expanding project timetable, which has resulted in the proposed
transaction ceasing to meet the Company's financial return
objectives.
As previously announced, the Company provided an initial
unsecured working capital facility to ITS of US$500,000. This
facility was subsequently increased by US$120,000 and the aggregate
loan of US$620,000 is due for repayment in accordance with its
terms by 26 December 2015.
New Project Opportunities
The Company will continue to actively pursue investment
opportunities in the resources sector which are in line with the
Company's stated investing policy. The Company's strategic
objective is to identify projects that have a clear pathway to
production or monetization and can generate high returns to
shareholders. This will be achieved by leveraging the in-house
expertise and track-record in identifying, acquiring, financing,
developing and operating resource projects, and un-locking value.
The Company's plan is to identify advanced or brown-field assets
which have a high probability of being re-rated in the listed
market.
Whilst the overall investment climate in the resources sector
continues to be very difficult, asset valuations are currently
substantially discounted, which we believe provides an attractive
investing opportunity at the bottom of the investment cycle. A
number of opportunities are currently being studied and the Company
retains a strong cash position with working capital of A$1.5
million.
ASX/AIM Suspension Update
The shares of Leyshon Resources have been suspended from trading
on the Australian Securities Exchange ("ASX") since 14 July 2014
and will remain suspended. ASX policy, in accordance with Chapter
12 of the Listing Rules, is to allow companies that have disposed
of their main undertakings a six-month period within which to
satisfy ASX that the company has a sufficient level of operations
to justify continued quotation of the Company's securities on the
ASX. The Company was not able to satisfy the ASX that it was in
compliance with Chapter 12 and was suspended from trading on 14
July 2014.
On 20 November 2014, the shares of Leyshon Resources were also
suspended from trading on the AIM Market on the announcement of the
proposed transaction with ITS (which constituted a possible reverse
takeover). As the Company is an investing company subject to AIM
Rule 15, and it has not implemented its investing policy or
completed an acquisition which constitutes a reverse takeover under
the AIM Rules for Companies within 12 months of becoming an
investing company, trading of the Company's shares on the AIM
Market will remain suspended pending implementation of its
investing policy or completion of an acquisition which constitutes
a reverse takeover.
The Company envisages the shares will remain suspended on the
ASX and the AIM Market until such time as the Company completes a
transaction and seeks re-compliance for listing on the ASX and
re-admission to the AIM Market.
With our available cash reserves, Leyshon is well positioned to
pursue quality projects in accordance with its investment strategy.
Every effort will be made to ensure we secure assets that are most
likely to achieve the corporate objectives and strategic aims of
the Company.
In the interim, the Company will continue to evaluate suitable
investment opportunities and will keep the market informed of any
material developments as they occur.
For further information please contact:
Leyshon Resources Limited
Corey Nolan - Managing Director
Tel: +61 7 3221 7770
admin@leyshonresources.com
RFC Ambrian Limited
Samantha Harrison (Nominated Adviser)
Kim Eckhof (Corporate broking)
Tel: +44 (0)203 440 6800
http://www.leyshonresources.com
Tenement Interests
Leyshon Resources Limited held the following interests in
exploration tenements at the end of the quarter. There were no
tenements acquired or disposed of during the quarter and no changes
in the beneficial interests held by the Company.
PROJECT BENEFICIAL INTEREST TENEMENT NAME
MOUNT LEYSHON 100% ML 1546 Golden Star
100% ML 10144 Mt Leyshon
100% ML 10148 Puddler Creek
100% ML 10149 Water Dam Gap Creek
100% ML 10172 Eastern Star
100% ML 10173 Southern Star
Leyshon Resources Limited ABN 75 010 482 274
Level 3 / Suite 3, 1292 Hay Street, West Perth 6005, Western
Australia
Tel: + 61 8 9321 0077 Fax: + 61 8 9322 4073
This information is provided by RNS
The company news service from the London Stock Exchange
END
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