Annual Report and Notice of AGM

RNS Number : 5676R

Ovoca Gold PLC

30 June 2015

 

30 June 2015

Ovoca Gold plc

("Ovoca" or the "Company")

Annual Report 2014 and Notice of AGM

Ovoca is pleased to announce the publication of its Annual Report and Financial Statements for the year ended 31 December 2014. Please click on the following link to view the Annual Report and Financial Statements:

http://www.rns-pdf.londonstockexchange.com/rns/5676R_-2015-6-29.pdf

Highlights 2014:

·      Ongoing search for new assets in the natural resource space

·      Approval of a share buy back programme up to a maximum of 20% of the issued share capital of Ovoca. To date, Ovoca has acquired 6.6% of its own share capital under this approved share buy back programme

·      The Company made a final settlement payment of US$3 million to acquire 100% of the Stakhanovsky licence free from any contingent claims

·      At 31 December 2014, Ovoca had net assets of US$27.7 million, which includes cash and cash equivalents of US$8.9 million

Letter from the CEO:

Beginning first with corporate matters, I draw your attention to our moves completing the acquisition of Stakhanovsky. Following the approval by shareholders of a final deferred consideration payment, Ovoca now has complete title to the Stakhanovsky Licence, a project which is currently in a go-slow mode due to the low gold price environment, but which has benefited in our economic models from the devaluation of the Russian ruble. Stakhanovsky has great exploration potential and is a relatively easy-to-execute mining project, given the infrastructure in place and level of gold recovery achievable from gravitation alone. We are seeking partners for the project and I will keep you posted of any progress there. Our team has been very adept at attracting partners and acquirers for projects, as evidenced by our past success at Goltsovoye and Olcha.

In recent years, Ovoca's share price has traded at a significant discount to its net assets. Having considered the merits of share buy backs, the Board proposed, and shareholders approved, at the shareholders meeting held in October 2014 a share buyback program of up to 20% of the issued share capital of the Company. This program enables the Company to respond to volatile stock market conditions and helps to stimulate liquidity in the Company's shares.

In 2014 Ovoca has been investigating numerous acquisition and investment opportunities in the natural resource space. We have always felt comfortable with mining projects and have focused our search on exploration projects not only in Russia, but also in North America and Europe. Although the market conditions with commodities have not improved since last year, we continue our search for new mining and explorations projects in these geographical areas. Given our cash resources, we have considerable leverage in any negotiation with potential partners and sellers of assets. However, we are not the only suitor in the market, and there is robust competition for the opportunities that we are investigating.

Ovoca is continuing to go through a litigation process with Taymura LLC - an oil and gas production company located in Eastern Siberia, Russia - which was an acquisition target of Ovoca, together with another exploration project, ETEK, for a potential joint venture. Despite the ongoing legal action and efforts to recover the loan, Ovoca still sees an opportunity to reach an agreement in respect of these assets and/or to recover substantially the entire loan sum together with interest accrued.

Ovoca has a strong balance sheet, but I feel that the balance sheet has even greater value when combined with the team we have at the Company. We have deep relationships with specialists, many of whom were past employees, who we can draw upon to help us review projects, provide advice, and who are ready to work with us on a full-time basis, if and when needed.

Lastly, I would like to comment that Ovoca thanks you, our shareholders, for your ongoing trust and understanding. I know these are challenging times for resource sector investors. We have faced this challenge head on, in a way that may have been confusing at first, but which I now hope makes sense. We have cut back staff, selectively retrenched on some of our plans, and been very discriminate in reviewing potential growth opportunities. We have secured our property to give us the breathing space to wait for better times. Finally, we have been, and remain, open to dialogue with you. Should you have any comments or questions you wish to discuss, I do hope you will not hesitate to contact me

The Annual Report and Financial Statements has been posted to shareholders today and is also available online at the Company's website, www.ovocagold.com.

Annual General Meeting:

The Notice of Annual General Meeting ("AGM") has also been posted to shareholders today. The AGM is convened to be held at Buswells Hotel, 23-25 Molesworth Steet, Dublin 2, Ireland on 26^th August 2015 at 2.00 p.m. The Notice of AGM contains details of all resolutions to be proposed at the AGM. Copies of the Notice of AGM are also available on the Company's website, www.ovocagold.com.

ENDS

Ovoca Gold Plc

Kirill Golovanov, CEO

 [phone]

Davy - NOMAD, ESM Adviser and Broker

John Frain / Daragh O'Reilly [phone]

 

END

 

 

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