BWA Group PLC- Business and Strategic Updates Show Company Capable of Maintaining the Momentum

BWA Group PLC, established in 1932 as an investment company, is listed on the AQSE index of London Stock Exchange (previously known as NEX Exchange). BWA holds a 100% stake in the shares of its subsidiary company, BWA Resources (UK).

In 2019, Kings of North Group (KOTN), a Canadian company, was acquired by the BWA Group. Now, the company has five mineral exploration licenses in Canada and two in Cameroon. All these seven mineral exploration licences are at different levels of exploration, ranging from introductory level to advanced explorations.

The five KOTN Canadian properties were valued at GBP 4.66 million in an independent report by SRK Exploration Services, including CAD 0.3 million (GBP 0.185 million ) for 3 million shares in St George's Eco-mining Corp valued at GBP 0.106 million as on May 31, 2020. This business valuation does not take into consideration the Cameroon explorations as it was not granted at that time.

Prudent and Precise Business Strategies of The BWA Group

The company recently came up with its “Strategic and Business Update”, where it reiterated that it aims to acquire good quality mining rights in order to execute its strategy. Company’s plan of action involves an appropriate CPR (Competent Person Report) level studies, followed by well-targeted exploration and development of mineral resources, on with an intention to develop capability through financial joint ventures or operational joint ventures with suitable mining partners.

The development of properties takes place strategically, followed by the assessment of accessibility and extractability along with costs in order to progress in compliance with the available funds.

Canada Investment Scenario

Company’s five mineral explorations license in Canada consists of Winterhouse, Helmo North, Nova Gold, Isouskostoc and Villebon. All these have a geographical advantage of being closely situated to the existing mineral exploration and mining areas with excellent infrastructure and transport links. The prospectivity of all these properties has been considered to be strong by the SRK valuation report.

The Helmo North property stands on the Northmost extent of Herron Bay- Helmo Greenstone Belt, containing the gold producing mines of Helmo. Barrick's Helmo gold mines have been operating for the last 30 years and have produced more than 30 Moz of Gold.

Canada, especially Montreal and Toronto, had been severely affected by the spread of Coronavirus and strict lockdown. This interruption, along with short seasonal working conditions, has led to minimal activity in the license area and delay in the company’s implementation of its system at KOTN. The company still have to pay an option payment of CAD 50,000 (around £28,500) to Hemlo Explorers Inc.

Cameroon Investment Scenario

Two exploration licences were granted to BWA Group PLC in Cameroon in December 2019 (Nkoteng permit 637) and March 2020 (Dehane permit 636), covering a total of approximately 620 sq. km. The cost of Cameroon rutile operations is low in terms of both exploration and capex costs, in view of the expected timing from Mineral Resource Estimate CPR to early production in one-to-one and half years. Out of the two marked areas, the first one is being established for prospecting pits, drill targets, and undertaking preliminary mineral analysis. The financial commitments of GBP 0.25 million in total are made, spread across the 2 license areas, of which around GBP 0.12 million of the initial commitment has already been spent. From the company's perspective, this is positive as the money spent on the exploration, CPR, and resource process enhances the value of the mineral licenses.

The highly qualified Cameroonian-based staffs have been able to keep the operations going under remote guidance from the UK even after Cameroon had been affected by the Covid-19.

The summary of the licenses held by the BWA Group in Cameroon:

Sl. No.

Name

Province

Commodity

Area Sq. Km.

1.

Nkoteng (permit 637)

Central Cameroon Sanaga River System

Rutile

Ilmenite

Zircon

497

2.

Dehane (permit 636)

Western Cameroon Nyong River System

Rutile

Ilmenite

Zircon

132

Appointments and Fund-Raising Updates

Allenby Capital, a highly respected AQSE Corporate and AIM Nominated Advisor, was appointed by the company as the corporate advisor. It specialises in fund-raising for growth companies and investment from new shareholders.

The BWA Group appointed James Hogg (MSc., BSc., MAIG) as a non-Executive Director with effect from 1 June 2020. Having more than 20 years of experience in different mineral types and geographies, he is the Principal Geologist and Managing Director of Addison Mining Services.

The Group raised GBP 0.1 million by way of the issue of 20 million shares at 0.5p per share in March 2020. Besides, 6.39 million shares have been or will be, issued to the Directors in respect of their fees for the six months to March 31 at 0.5 pence per share.

Outlook

The company has been through a transformational period after the acquisition of Kings of the North Corp (KOTN) in October 2019, with the subsequent grant of two exploration licences in Cameroon. Now it has progressed further with the appointment of a non-Executive Director and the appointment of a new Corporate Adviser. There has been good progress witnessed in Cameroon, whereas Canada remained close due to lockdown. The investments in Cameroon are creating more value than the same amount invested in Canada. The company’s investment in the Cameroon Project of GBP 0.27 million as at April 30, 2019, has risen over the last 13 months by GBP 0.18 million to GBP 0.45 million. The stock of the BWA Group Plc (BWAP) ended at GBX 0.35 on the AQSE Growth Market on 2 July 2020.


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