Celamin Holdings Limited (ASX: CNL), established in 2009 and based in South Melbourne, Australia is a metals and mining sector company that explores and develops resource projects in North Africa. Currently, it holds a 51% interest in the Tunis-based Chaketma Phosphate Project which comprises six prospects covering a total area of 56 km2 and hosts a total JORC compliant Inferred Resource of 130Mt @ 20.5% P?O?, confirmed from drilling at only two of the project’s six prospects.
On April 5th, 2019, the company pleasingly informed the market that it had received an overnight confirmation that the Court of Appeal of Tunis has issued orders enforcing both the interim and final arbitration decisions, ordering, amongst other matters, the return of Celamin’s interest in Chaketma project and payment of over USD 4 million in damages and costs plus interest.
On November 30th, 2018, the International Court of Arbitration of the International Chamber of Commerce appointed a sole arbitrator which ruled in favour of Celamin with respect to the fraudulent transfer to Tunisian Mining Services (TMS) of Celamin’s 51% interest in Chaketma Phosphates SARL, the operating company that holds the Chaketma phosphate permit. Subsequently, the sole arbitrator ordered, amongst other matters, TMS to return Celamin’s 51% interest in CPSA and also pay the damages and costs.
Following the non-compliance of the orders by TMS, Celamin filed in the Court of Appeal of Tunis to enforce the arbitrator’s orders. According to the company, the overnight decision has reinstated its confidence in Tunisia as a viable destination for foreign investment in the mineral resources sector. The process of recovery will begin immediately.
As the orders are enforced and the settlement come to an end, Celamin envisages to introduce an international partner to facilitate funding discussions and also commence a feasibility study to evaluate the viability of producing either rock phosphate or chemical fertiliser.
Celamin Holdings released its half-year financial report for the period ended December 31st, 2018, posting the loss after income tax at $ 584,442, down on $ 877,976 recorded in the prior corresponding period (PCP) ended December 31st, 2017. In addition, the Group’s net liability position of $ 119,419 as at June 30th, 2018 improved to a net asset position of $ 324,939 as at December 31st, 2018, primarily driven by an increase in cash reserves as a result of successful completion of a share purchase plan and top-up placement during the November and December 2018 period, that raised a total of $ 622,500 and $ 336,502 respectively.
At the end of the concerned period, the net cash and cash equivalents amounted to $ 922,559. The operating and investing activities led to net cash outflows of $ 571,225 and $ 4,788 respectively due to payments to suppliers and employees (including GST) as well as payments for exploration and evaluation. On the other hand, there were net cash inflows of $ 913,669 generated by the financing activities on account of proceeds from the issue of shares.
Celamin Holdings has a current market cap of $ 9.12 million. On April 5th, 2019, the CNL stock price closed the market trading at $ 0.072, soaring high by 12.5% with 329,897 shares traded.