Johannesburg Stock Exchange listed gold miner, Pan African Resources is negotiating with joint administrators of ASA Resource PLC for acquisition of “certain” assets of the group in Zimbabwe. The reported ongoing negotiations come as 52 percent of ASA shareholders have allegedly accepted a 2,1 pence a share offer from a prospective buyer Rich Pro Investments (RPI).
Interestingly though, RPI is reportedly linked to ousted former chief executive, who was also ASA chairman, Ning Yat Hoi who has a pending arrest warrant over missing company funds amounting to $4,3 million.
The allegations against Yat Hoi relate to one of Asa’s current major producing asset, Freda Rebecca, a 75 percent owned asset with a net asset value of $75 million. ASA was put under administration last year and had its shares suspended from trading on Alternative Investment Market in London after struggling to meet its ongoing liabilities and it was concerned about cash flow after it received the takeover bid from Chinese industrialist Feng Hailiang’s Rich Pro Investments.
ASA Resource has gold and nickel mines as well as undeveloped nickel assets in Zimbabwe. It intends to develop the assets in the Midlands Province of Zimbabwe once global nickel prices rise to levels that sustain the project.