Avesoro Resources Inc. (DI) (ASO)

Sector:

Mining

Index:

FTSE AIM All-Share

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 85.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 201.50p
  • 52 Week Low: 31.50p
  • Currency: UK Pounds
  • Shares Issued: 81.58m
  • Volume: 1,030,503
  • Market Cap: £69.34m
  • RiskGrade: 764
  • Beta: 0.00

Avesoro enters agreement to purchase new heavy mining equipment

By Josh White

Date: Monday 16 Oct 2017

LONDON (ShareCast) - (ShareCast News) - West African gold producer Avesoro Resources announced on Monday that its wholly-owned subsidiary Bea Mountain Mining Corporation has entered into equipment finance facility agreements with Mapa İnşaat ve Ticaret - a related party of the company - to facilitate the purchase of heavy mining equipment totaling $6.1m.
The AIM-traded firm said it followed its announcement on 11 October of an updated mineral resource and mineral reserve estimate for the New Liberty Gold Mine, and details of the new mine plan for New Liberty, which required the procurement of additional equipment.

Avesoro said it had sought quotes for the equipment from a number of providers, however due to Mapa's purchasing power it could secure "more competitive terms" than could be achieved by the company directly.

Mapa is part of the MNG group of companies owned by the company's non-executive chairman, Mehmet Nazif Gűnal, and as a result entering into the finance agreements constituted a related party transaction under the AIM Rules.

"Once the expanded mining fleet is complete, the company expects to be able to ramp-up to a quarterly gold production rate of 36koz during 2018," Avesoro's board said in its statement.

The finance agreements, totaling approximately $6.1m, related to two Sandvik 1500i drill rigs, one Komatsu PC1250 excavator and four Komatsu HD785 haul trucks.

Delivery to New Liberty is expected to occur in late October.

The loan principal of the agreements included a markup of 2.5% over the cost incurred by Mapa in procuring the equipment.

Avesoro said BMMC expected to enter into further agreements with Mapa, on "substantially similar" terms to the agreements announced on Monday, to facilitate the purchase of additional new equipment including three Komatsu PC1250 excavators and eight Komatsu HD785 haul trucks, along with some auxiliary equipment, for delivery to New Liberty throughout Q4 2017 and Q1 2018, as required under the updated mine plan.

"A further announcement will be made as appropriate if those additional finance agreements are entered into," the board said.

The equipment finance loans under each of the finance agreements are unsecured, with interest charged at 6.5% per annum on the dollar-denominated loan amount of approximately $3.7m and 5.5% per annum on the euro-denominated loan amount of approximately €2.0m - equivalent to approximately $2.4m.

Avesoro said the loans are repayable in cash in eight equal semi-annual instalments, the first of which will fall due six months after utilisation of the loan.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

ASO Market Data

Currency UK Pounds
Share Price 85.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 201.50p
52 Week Low 31.50p
Volume 1,030,503
Shares Issued 81.58m
Market Cap £69.34m
Beta 0.00
RiskGrade 764

ASO Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
Market averageMarket averageMarket averageMarket averageMarket average
54.62% below the sector average54.62% below the sector average54.62% below the sector average54.62% below the sector average54.62% below the sector average
Price Trend
2.84% below the market average2.84% below the market average2.84% below the market average2.84% below the market average2.84% below the market average
66.93% below the sector average66.93% below the sector average66.93% below the sector average66.93% below the sector average66.93% below the sector average
Income Not Available
Growth
Market averageMarket averageMarket averageMarket averageMarket average
45.16% above the sector average45.16% above the sector average45.16% above the sector average45.16% above the sector average45.16% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 1
Sell 0
Strong Sell 1
Total 3
neutral
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ASO Dividends

No dividends found

Trades for 23-Aug-2019

Time Volume / Share Price
16:11 900 @ 79.00p
14:29 16 @ 83.70p
12:47 100 @ 83.80p
11:35 31 @ 83.70p
11:08 1,026,172 @ 85.00p

ASO Key Personnel

CEO Serhan Umurhan
CFO Geoff Eyre

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