12th Jan 2016 12:59
LONDON (Alliance News) - CIC Gold Group Ltd Tuesday said a technical report on the Gobi Minerals copper and gold project in Mongolia will be released on Thursday, and also said it is set to make new board appointments imminently.
The China-headquartered miner said the technical report on the mine will be released on its website on Thursday. CIC is hoping to acquire Gobi Minerals Ltd for GBP5.6 million in a reverse takeover announced in November, which is waiting for shareholder approval.
The acquisition is to be financed through the issue to the sellers of 280.0 million CIC shares, and shareholders will vote at a meeting booked in for February 19.
The project consists of one exploration lease covering 478.0 square kilometres, which CIC said is "known to contain a number of potentially significant economic gold, copper and rare earth deposits." The project is in the south Gobi region of the country, where the major Oyu Tolgoi mine lies.
When it announced the potential acquisition, Barsbold Ulambayar, independent non-executive director, was named executive director and chief operating officer by the company, with Geoffrey Cowley, the previous chief executive, appointed as non-executive technical director.
On Tuesday, CIC Gold said it was "finalising" new board appointments, and said Independent Non-Executive Luke Webster had resigned from the company.
In addition, the company said it will receive a further convertible loan facility from CIC Capital Fund Ltd, which provided the initial working capital by way of convertible loans in the initial public listing of the company in June 2015.
Currently, the company's principal treasury fund is held in the account of its Chinese subsidiary, Top Ten Co, and to gain approval to transfer funds out of the country is "complex" and can take "significant time," leading the company to secure the convertible loan facility.
CIC Capital Fund will provide a GBP1.2 million facility, which if converted into shares would be at a price of 2.0 pence per share with a full warrant.
"This will resolve the significant issue of funds transfer out of China to discharge remaining creditors of the company in the near future. The funds remaining in its Chinese subsidiary will be used for working capital to fund the human resources and other costs in China in relation to the Gobi Minerals project," said CIC Gold.
CIC Gold shares were trading up 1.8% to 1.45 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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