OVG Ovoca Gold

 

TIDMOVG 
 
RNS Number : 1749S 
Ovoca Gold PLC 
13 May 2009 
 

Ovoca Gold plc 
("Ovoca" or the "Company") 
 
 
Operational update 
 
 
Ovoca (London (OVG.L), Dublin (OVX.IR)) is pleased to announce an operational 
update. 
 
 
Highlights 
 
 
  *  Ongoing planning of development activities in Pellapakh, the Company's recently 
  discovered world-class molybdenum/copper ore body in the Kola Peninsula. 
 
 
 
  *  Drilling on Oleninskoye target completed with results due in June. 
 
 
 
  *  Continuing to review acquisition opportunities in Russia and certain other 
  jurisdictions. 
 
 
 
  *  Strong liquidity position with approximately US$ 34 million in cash and 
  Polymetal shareholding currently valued at US$ 19 million. 
 
 
 
Kola Properties 
 
 
Ovoca holds two exploration licenses in the Kola Peninsula, Russia, which are 
the Company's key exploration assets. The licenses are located relatively close 
to infrastructure being 50 km from a hydropower station, 160 km from a large 
year-round seaport and 80 km from the nearest railroad station. In 2008 the 
Company announced the discovery of a world-class molybdenum/copper ore body 
named Pellapakh on one of its licenses. Ovoca is currently evaluating different 
development options for Pellapakh in the current low molybdenum and copper price 
environment. On Oleninskoye, a high-grade gold target similar in geology to 
active gold mines in neighbouring Finland (Suurikuusikko), 780 meters was 
drilled this year and the Company expects to receive back analysis of its core 
samples by the end of June. An announcement of these results will be made in due 
course. 
 
 
 
Corporate Development 
 
 
The management of Ovoca is examining acquisition opportunities for the Company. 
Management's acquisition strategy is to leverage the current cash shortage among 
the junior mining sector to the maximum benefit for Ovoca's shareholders. 
Management is targeting low execution risk, late development stage assets. 
Additionally, management is also looking at various exploration opportunities 
that are present in Russia in areas where the Company has expertise. These 
opportunities require modest current capital outlay but have world-class 
potential in the future. The Company is fully utilizing the strengths that it 
has built up over the last several years: such as a highly qualified technical 
team including geologists, engineers and metallurgists. 
 
 
The Board and management are focused on keeping administration costs low to 
preserve the maximum amount of financial resources the Company has it its 
disposal for its exploration and development activities and for corporate 
development. The next stage of the Company's growth will be done from a 
corporate platform that is as efficient and lean as possible. 
 
 
Ovoca expects to issue its preliminary results for the year ended 31 December 
2008 and announce a date for its Annual General Meeting by the middle of June 
2009. At the Annual General Meeting a full Company presentation will be made to 
shareholders. The Company's annual report and AGM materials will be posted to 
shareholders in due course. 
 
 
 
 
Cash and Equity Investments 
 
 
In January Ovoca completed the sale of its 100 percent interest in Ayax, the 
owner of the Goltsovoye exploration and production licence, to JSC Polymetal 
("Polymetal"). Upon completion, the disposal proceeds of US$ 11 million cash, 
7.5 million Polymetal common shares and a cash payment for certain other 
ancillary assets and machinery equivalent to their book value of US$ 0.7 million 
were received in full. 
 
 
Polymetal is Russia's second largest precious metals mining company and its 
common shares are traded on the RTS and MICEX exchanges in Russia and its global 
depository receipts are traded on the main market of the London Stock Exchange. 
 
 
Currently, Ovoca has circa 3 million Polymetal common shares and approximately 
US$ 34 million in cash. 
 
 
Management is exploring different ways to efficiently manage the value of its 
cash and securities positions and will continue to review options for its cash 
and equity positions to ensure returns to shareholder are optimised. 
 
 
 
 
Board Composition 
 
 
Ovoca is pleased to announce that Mr Mikhail Mogutov has become executive 
Chairman with immediate effect and in this role will actively assist the CEO in 
strategic and operational matters in this current exciting phase of development 
and opportunity for the Ovoca. 
 
 
Mr. Leonid Skoptsov CEO of Ovoca commented 
 
 
"The market is extremely volatile right now, and although the precious metals 
sector in which we operate is one of the few areas of optimism, we feel that it 
makes sense to err on the side of caution. Ovoca will not rush to "do something" 
for the sake of being active, and we will carefully consider all options 
available to the company before making any decision." 
 
 
Further information is available on the Company's website at www.ovocagold.com 
 
 
 
 
For further information contact 
 
 
Ovoca Gold plc 
Mr. Leonid Skoptsov CEO 
+7 495 916 60 29 
 
 
Davy (Nomad) 
John Frain 
+353 1 679 6363 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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