Change of Name and NAV Update

RNS Number : 3342R

Athol Gold and Value Limited

02 November 2011

 



2 November 2011

ATHOL GOLD AND VALUE LIMITED

(Formerly Athol Gold Limited)

("Athol" or the "Company")

Change of Name, new Investment Management Agreement and NAV Update

Further to the Extraordinary General Meeting which took place last week ("EGM"), Athol announces that it has now changed its name to Athol Gold and Value Limited and that it has entered into a new Investment Management Agreement ("IM Agreement") with t1ps Investment Management (IOM) Limited ("TIM").  The TIM team will be led by Tom Winnifrith.  Accordingly Tom Winnifrith will no longer act as Chief Investment Officer for the Company in a personal capacity although the scope of his role is broadly unchanged. 

The Company's AIM symbol will remain as AHG.

The terms of the IM Agreement are that TIM will continue to be incentivised on the basis of Net Asset Value performance while now also receiving a standard management fee.  Any historic performance fees owed to TIM have been waived and TIM will now receive a flat annual management fee of 1.5% payable in Athol shares quarterly in arrears. The incentive for TIM to continue to deliver growth in Net Asset Value will be an annual performance fee of 20% of any return in excess of a 20% increase in Net Asset Value per share using the existing high watermark of 0.617p as the starting point. This fee will also be payable in Athol shares. TIM will not receive fees in respect of the percentage of the fully diluted equity held by funds managed by TIM.

The Directors consider, having consulted with its nominated adviser, Libertas Capital Corporate Finance Limited, that the terms of the IM Agreement are fair and reasonable insofar as Athol shareholders are concerned.

The Board of Athol also announces that the Company's fully diluted NAV as at 25th October 2011 was 0.47p per share.

The Company's investments and assets as at 25th October 2011 were split as follows:

UK Listed Investments	£2,632,882.72
Canadian Investments	£116,231.02
Cash	£430,210.00
Total Portfolio Value	£3,179,323.74

Following on from the widening of the Company's investment focus, Athol will continue to announce its NAV on a quarterly basis.

The new investment policy adopted at the EGM will not change Athol's focus significantly but will allow the Company to take advantage of undervalued securities outside the Gold and natural resources sector. The Company will continue to be a passive investor and look to acquire any shares which it considers to be fundamentally undervalued with scope for material capital growth over the medium to long term.

Commenting on the NAV update and the new IM Agreement, Tom Winnifrith, Senior Investment Manager at TIM, said:

"I am pleased that the regulators have agreed to the new IM Agreement which puts my relationship with Athol on a more formal basis. The slip in NAV is disappointing but the portfolio can move sharply - NAV was 0.49p just 24 hours after the quarter day. Given the impending collapse of the Euro and the fact that the US Debt to GDP ratio passed 100% just 3 days ago, we think the outlook for gold is incredibly bright and therefore we remain very confident indeed about our prospects...our plans to grow funds under management and to rationalise the vast numbers of sub critical listed investment companies are well advanced and we expect to start that process very soon indeed."

For further information contact:

Athol Gold Limited Jennifer Allsop, Executive Chairman	[phone]
Libertas Capital Corporate Finance Limited Sandy Jamieson	[phone]
XCAP Securities plc John Grant / Jon Belliss	[phone]

 

END

 

 

CANMMMGMRZGGMZG