NAV, Performance fee & Issue

RNS Number : 1338A

Athol Gold Limited

26 January 2011

 



26 January 2011

ATHOL GOLD LIMITED (AIM: AHG)

("AHG" or the "Company")

Athol Gold NAV, Performance Fee & Issue of Shares

The board of Athol Gold is delighted to announce that its fully diluted NAV has increased from 0.22p on 26^th October to 0.617p on 25^th January - an increase of 180%.

Athol Gold 's investment strategy is to invest in gold and precious metal companies quoted on stock exchanges in the UK/Canada and Australia. Its investments and assets as at 25^th January 2011 are split as follows:

Cash                                                                                                      £20,749

Value of investments quoted on UK exchanges                £2,689,710

Value of investments quoted on Canadian exchanges   £155,455

Total Value of Assets                                                                     £2,865,914

In calculating the NAV the fully diluted number of shares in issue has been arrived at by aggregating the 18,000,000 shares that would be issued if outstanding loan notes were to be converted into shares with the 446,284,866 shares currently in issue. Accordingly the number of shares that would be issued on a fully diluted basis is 464,284,866.

According to the management agreement signed with t1ps Investment Management IOM (TIM) it is entitled to a fee payable quarterly in shares of 25% of the uplift in NAV per share in each quarter with no fee payable on the percentage of fully diluted equity owned by funds managed by TIM.

The agreement states that the fee shares should be issued at NAV but in order to align TIM's interests with those of all shareholders, TIM has requested that the shares be issued at the closing share price on 25^th January, 1p. On this basis the Company will therefore issue 32,901,200 new shares to TIM in respect of its quarterly management fee.

The watermark for performance fees in  the next quarter will now be set at 0.617p and the number of shares calculated to be in issue on a fully diluted basis will increase to 479,186,066.  Athol will next announce the NAV as at 26 April 2011.

Issue of New Shares

Pursuant to the issue of the new shares to TIM, application will be made for the admission to AIM of 32,901,200 new ordinary shares ("New Shares"). Admission is expected to occur on Wednesday 2 February 2011. On admission, the New Shares will rank pari passu with the existing ordinary shares in the Company.

Total Voting Rights

Following admission, the Company's enlarged issued share capital will comprise 479,186,066 ordinary shares with one voting right per share. The total number of voting rights in the Company is therefore 479,186,066.

This figure of 479,186,066 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

Enquiries:

Athol Gold Limited

Waseem Shiraz

[phone]

T1ps Investment Management (IoM) Ltd

Tom Winnifrith

[phone]

Strand Hanson Limited

James Harris / Angela Peace/ Rory Chichester

[phone]

Ends

 

END

 

 

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