RNS

RNS Number : 1997H
Ortac Resources Limited
06 June 2017
 

06 June 2017

Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration

ORTAC RESOURCES LTD

("ORTAC" OR THE "COMPANY")

Corporate Update

 

Ortac Resources Ltd, the AIM listed mineral exploration company operating in Europe and Africa announces a corporate update on the Company's board of directors and operations.

Changes to Board of Directors

A number of major changes are to be made to the board of directors of the Company. Ortac Chairman, Mr Anthony Balme, has advised the board of his intention to step down as Chairman of the Company at the Company's Annual General Meeting in September this year and will focus his efforts on realising value from the Companys' Slovakian assets. Mr Balme will be succeeded by Mr Nick von Schirnding, currently a Non-executive Director of the Company.

Mr Paul Heber, Non-executive Director has decided to retire from the board after having served the Company for over five years and accordingly will not stand for re-election at the 2017 Annual General Meeting. The appointment of a new Non-executive Director will be announced in due course.  

Following the plan to develop the Slovakian project with a local JV partner, the Company will now strengthen and accelerate the development of Ortac's core African investments.  In this regard, Ortac CEO, Vasillios Carellas, will focus in the near-term on supporting the development of  Casa's Misisi gold project, where the first phase of a major diamond drill program is about to commence.   

Casa Mining Limited ("CASA")

Following conversion of the Company's convertible loan note facility, Ortac will hold approximately a 45% equity interest in Casa Mining.  Casa has received gross funds of US$2 million from the recent issue of convertible loan notes to Ortac.

The drilling contractor, Orezone Drilling, has mobilised its diamond drill rig and drilling operations are expected to commence within the next one-to-two weeks. Further, Orezone Drilling has agreed to look at the possibility of commissioning CASA's own diamond drill rig, located on site at its camp at Misisi, which should enable CASA to speed up the drill program and complete the 15-hole, 2,700m drilling program over the next two to three months.  Vassillios Carellas and Nick von Schirnding have now been appointed to the board of Casa Mining.

Zamsort Limited ("Zamsort")

 

The Company is in advanced discussions with Zamsort to convert its 19.35% convertible loan notes into an equity position and, following that, Nick von Schirnding will be joining the board of Zamsort.  Ortac has been advised by Zamsort that it is in negotiations with potential lenders to raise finance to complete the construction of the copper - cobalt leach plant at its Kalaba deposit.

 

Andiamo Exploration Limited ("Andiamo")

 

 The Eritrean focussed explorer in which the Company holds an 18.48% equity interest, has recently completed a Reverse Circulation ("RC") drill program. In total, 16 holes were completed for a total 1,266m, with six holes for 696m drilled up in the northern part of the license, formerly the JV agreement area, which tested three known anomalies. A further 7 holes for 376m drilled at Yacob Dewar and 3 holes for 194m drilled at Bergebey have been completed.

 

The samples from this RC drill program are currently in Asmara and undergoing preparation prior to being shipped off for external assay. The assay results from this drill program are expected to be received within the next six weeks.

 

Slovakia

 

The Company continues its discussions with its local JV partner in a process that is designed to enable the Šturec deposit to move towards production. Meanwhile, the Company continues to engage positively with the relevant authorities to recommence underground mining activities by mid-July 2017. 

 

General

The Board continues to examine all options to maximise value for shareholders, including a potential corporate restructuring. Further updates will be made as appropriate.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

**ENDS**

 

Contacts

 

Ortac Resources Ltd

Vassilios Carellas (CEO)

 

+44 (0) 20 3874 8664

SP Angel (Nominated Adviser & Broker)

Ewan Leggat / Lindsay Mair

 

 

+44 (0) 20 3470 0470

 

 

 

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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