Australian-based minerals exploration and mining company, Intrepid Mines Limited (ASX: IAU) has provided an update on the sale of the Mumbwa and Kitumba Copper projects which are located.
According to the company’ announcement, the share sale agreement regarding these projects which was signed on 6 September 2018, is now unconditional. Further, the Payment of the outstanding consideration (USD 4,500,000) will occur in two tranches, with USD 500,000 payable within 21 days after completion and the balance payable within six months. In another announcement on ASX, the company has advised that the record date for the $0.75 per share return of capital is Monday 11 February 2019.
Moreover, the company had earlier stated that its off-market takeover bid for all of the fully paid ordinary shares in AIC Resources Limited (ASX: A1C) (AIC Resources), as set out in Intrepid’s bidder’s statement dated 3 October 2018 (as amended and supplemented by the supplementary bidder’s statement dated Thursday, 15 November 2018) (Offer) has lapsed.
The 90% minimum acceptance condition to which the Offer was subject had not been met as of the close of the Offer period at 7.00pm (Sydney time) yesterday, Monday, 4 February 2019, and as announced by Intrepid on Friday, 25 January 2019, this condition could not be waived by Intrepid.
The company believes in the strong strategic merit of a merger with AIC Resources and will continue its discussions with the AIC Resources board of directors.
As on the Financial front, the company has for the FY ending 31 December 2017 registered a loss before income tax from its continuing operations of $2,258,000 while the same stood at ($1,165,000) for the FY 2016. Net assets of the Group as at 31 December 2017 were $24,302,000 vis-à-vis $55,844,000, for FY2016. At 31 December 2017 the net assets of the Group was $24,302,000 (2016: $55,844,000) and the Group’s cash balance was $20,015,000 (2016: 23,864,000).
As regards the key audit matters (KAM), that was reported by the Company Auditors i.e., Ernst & Young for the FY ending 2017. The auditors reported that the firm had inked a Share Sale pact, to sell the whole of its stake in the IMZL, which is a 100% subsidiary of the company. IMZL holds the ownership in all of the Zambian exploration licences & assets. Thus, as on the reporting date an impairment loss of $26,695,000 was recognised in accordance with the AASB 9 – Financial Instruments.
Now, let us have a glance at the Intrepid Mines Limited’s stock performance and the return it has posted over the last few months. The stock last traded at a price of $1.02, with a market capitalisation of ~$14.06 Million. The stock has provided a YTD return of -5.56% & also posted returns of 30.77%, -9.73% & -3.77% over the past six months, three & one-months period respectively. It had a 52-week high price of $0.318, with an average volume of 7,068 approximately.
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