30th Aug 2019 11:47
(Alliance News) - Global Resources Investment Trust PLC on Friday said that it is in discussions with Croatian shipping company Makar Navis Doo to sell Anglo-African Minerals PLC for USD5.2 million.
Global Resources said the sale will lift its net asset value per share and the the disposal will be finalised in due course. In the event the transaction is not completed however, Global Resources said it would find other means of securing future funding.
The firm is currently conducting a strategic review concerning its future operations following a difficult 2018 where its net asset value sunk by 83% year-on-year to 3.4 pence from 19.7p.
In July, when it published its 2018 annual results, the company said that it had to write down the value of its investment in Anglo-African Minerals to GBP471,000, following insufficient progress in refinancing the company.
It also wrote down the value of its investment in Siberian Goldfields Ltd to GBP151,000, which it attributed to sanctions against Russia and increasing international tension making it difficult to finance the company. As a result, it is currently conducting a strategic review concerning its future operations.
Global Resources mulled liquidation but earlier in August conceded that it would not be able to pass a voluntary liquidation motion through its shareholders.
Shares in Global Resources more than doubled to 4.32 pence each in London on Friday morning.
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