Publication of Annual Report

RNS Number : 6448J

Ovoca Gold PLC

30 June 2017

 

30 June 2017

Ovoca Gold plc

("Ovoca" or the "Company")

Publication of 2016 Annual Report

Ovoca is pleased to announce the publication of its Annual Report and Financial Statements for the year ended 31 December 2016. Please click on the following link to view the Annual Report and Financial Statements:

http://www.rns-pdf.londonstockexchange.com/rns/6448J_-2017-6-29.pdf 

Highlights 2016:

·   Ovoca has continued its ongoing search for new assets and business opportunities

·   At 31 December 2016, Ovoca had net assets of US$25.2 million, which includes cash and cash equivalents of US$7.1 million

·   Ovoca has continued its efforts to pursue the recovery of funds from LLC Taymura ("Taymura"). As previously noted, Taymura has been declared bankrupt and Ovoca has entered into legal proceedings to recover as much as legally possible and bring the matter to an end. Ovoca is the main creditor of Taymura.

Letter from the CEO:

I am pleased to report that despite the long time Ovoca has been involved in its legal process with Taymura, the Company believes it is making progress. I more than anyone would like this matter to be over quickly, but the sums involved are significant and so there is no short cut to the process we began.

While the Taymura legal case has continued to progress, we have also sought ways to realize value for our Stakhanovsky gold development project in Magadan, Russia. The gold price has continued to stay high since mid-2016, and this has given us confidence that we will find a partner for Stakhanovsky. Additionally, the Federal government of Russia has eased the regulatory and tax burden of working the Far East Region (of which Magadan is a part), which further enhances mining projects' attractiveness in the area.

Additionally, the oil price recovered from the lows observed in early 2016 through the remainder of the year, and we believe our oil asset represents great potential once we get the current legal issues resolved. There is plenty of scope for partnership with the assets of Taymura and the overall East Siberian region has great potential for oil production as the older fields in West Siberia are depleted.

As with last financial year, the Company's management and board of directors examined several projects, and we are working on negotiating favourable deals for Ovoca. We also continue to look at new opportunities.

In conclusion, the end is in sight for our legal issue with Taymura and I am confident there will be corporate news soon regarding Ovoca's next steps. We continue to be in strong financial shape, with a healthy cash balance.

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.

Ovoca will make a further notification to shareholders in due course with details of this year's Annual General Meeting of the Company.

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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