23rd Nov 2015 11:09
LONDON (Alliance News) - Conroy Gold & Natural Resources PLC on Monday said the construction of a mine at Clontibret in Ireland remains its main focus, as it reported a narrowing of its losses in its last financial year and put forward plans to reorganise its share capital.
"We have made further progress towards the development of the mine at Clontibret, with continuity of gold at depth confirmed by drilling. The infill drilling has enhanced the economics of the project, which show excellent returns even at the current gold price, and the presence of potentially commercial amounts of antimony further improve the prospects. Our focus is on developing a mine at Clontibret, initially to be open pit," Chairman Richard Conroy said in a statement.
The Ireland-based resource company's loss before and after tax amounted to EUR315,314 in the year ended May 31, compared with the EUR380,305 loss in the prior year, as operating expenses fell. Cash amounted to EUR23,480 at the end of May, compared with EUR78,372 at the start of the company's financial year.
Meanwhile, Conroy wants to tackle the discount at which its shares have traded to their nominal value of EUR0.01. Since the company is unable to issue shares at a discount to nominal value, it wants to embark on a capital reorganisation instead. In addition, Conroy thinks that the capital reorganisation will result in a higher share price due to the "result" from the move being "more attractive" to a greater number of investors.
Conroy first wants to subdivide each of its existing shares to reduce their nominal value, followed by the consolidation of the shares. That will have the effect of reducing the number of Conroy shares in issue.
Each existing share in issue will be subdivided into one share and one deferred share. Each unissued existing share will be subdivided into 1,000 shares of EUR0.00001. The issued and unissued shares will be consolidated into new shares of EUR0.001 each.
The process will leave shareholders with one consolidated share and 100 deferred shares in place of each 100 existing shares.
There will be about 4.4 million consolidated shares and 744.1 million deferred shares following those steps.
"The company has made significant progress towards bringing Clontibret into production and the board believes that the reorganisation of the share capital will assist in the development of the company as we move from exploration to development," Richard Conroy said.
The capital reorganisation requires shareholder approval.
Shares in Conroy were down 3.5% at 0.410 pence on Monday late morning.
By Samuel Agini; [email protected]; @samuelagini
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