Board and management structure update

2 May 2017                                                     

Asa Resource Group plc
("Asa Resource", "the Group" or "the Company")

 

Board and management structure update

 

The Board of Asa Resource Group plc report that a number of decisions have been taken to consolidate the structure and operation of the Group following the recent removal of two executive directors.

 

Yuan Hu Ching, an appointee of China International Mining Group Corporation ("CIMGC"), has been removed from office as a non-executive director. CIMGC is entitled, under its relationship agreement with Asa Resource, to nominate two non-executive directors to the Board although, at the time of this announcement, no such nominations have been received. 

 

As already announced earlier today, Ian Barry Dearing has been appointed as an executive director to enable continuity of restoration of a proper corporate governance structure within the Group.

 

Conrad Mukanganga has been appointed as assistant company secretary of the Group with responsibility for the secretarial functions of Bindura Nickel Corporation ("BNC") and Freda Rebecca Gold Mine ("FRGM") plus administration of the Group's other subsidiaries. Conrad was in the process of being retrenched at the instance of the former executive but was welcomed back by the directors of FRGM and BNC.

 

The Board has met with directors of BNC and FRGM and restated the position that both companies are operated on an independent basis and that the boards of BNC and FRGM are responsible for governing the actions of their own executives without interference from Asa Resource. This was welcomed by the local boards, who are pleased that Toi Muganyi will retain responsibility for FRGM and Bati Manhando will retain responsibility for BNC's operations, whilst both will also be undertaking additional roles in relation to the wider Group.

 

Mining plans at BNC have been restored to those recommended by the local operational teams and supported by the BNC board.

 

The financial structure of the Group has been consolidated by confirmation of Jan Lampen as financial controller of both BNC and FRGM. Jan has many years of experience at BNC and has also supervised FRGM in the past. He will support Carla Tate in her role as the Group's finance director.

 

FRGM has implemented urgent works to repair Mill 2 so that full processing could be restored within a matter of months.

 

Group administration is to be properly concentrated in Zimbabwe at the Asa Complex in Bindura so that there is ease of communication between the Group's executive team and the major subsidiaries.

 

The lease of the Hong Kong offices has been terminated with the saving of up to 10 jobs.

 

The Board firmly believes the direction of the Group's operations are now in the hands of a competent Zimbabwean team headed by Toi Muganyi and Bati Manhando and under the Chairmanship of David Murangari.

 

Dr Scott Morrison, Senior Independent director said: "We have acted swiftly and decisively to protect and stabilise FRGM and BNC. Our job at group level is to support the teams at both mines from bottom to top. We may provide guidance and facilitate proper changes, but we will not interfere with day-to-day management. We have every confidence in our operational teams and look forward to supporting them in the months ahead. We have stopped the actions which were bleeding FRGM and undermining BNC."

 

Toi Muganyi, interim chief executive officer, said "I am delighted that the Board has pledged its support to Bati and me, and given us the opportunity to show what we can do. I have every confidence that this trust and support will be sufficient to enable us to restore value to the Group within the next year."

 

Contact

For more information http://www.asaresourcegroup.com/ or contact us below.

 

Asa Resource Group plc       

One Fleet Place, London EC4M 7WS

Ian B Dearing, Executive Director, Group General Counsel and Company Secretary         

Niall Henry, non-executive Director (Investor Relations)

communications@asaresourcegroup.com

 

Nominated Adviser and Broker

SP Angel Corporate Finance LLP

Prince Frederick House, 35-39 Maddox Street, London W1S 2PP

John Mackay, Jeff Keating, Caroline Rowe

Tel: +44 (0) 20 3470 0470