BWA Group Plc’s growth outlook and Resumption of Mining work in Canada and Cameroon

  • Jun 22, 2020 BST
  • Team Kalkine
BWA Group Plc’s growth outlook and Resumption of Mining work in Canada and Cameroon

BWA Group Plc has ramped up its growth prospects through the acquisition of Kings of the North Corp (KOTN) in Canada, which owns a number of mining rights in Quebec and Ontario. Primarily focused on gold, the KOTN’s 5 mineral licences have shown strong prospectivity in the area which has been further confirmed by the recent announcement of successful strikes by other companies operating on the immediately adjacent area.

In Hemlo North property, the neighbour Barrick Gold Corporation, which is also an operator of adjacent Williams Mine, has produced more than 21M ounces of gold and has continuously been operating for over last 30 years. Further, Kings of the North Corp’s under-explored Nova Gold project has reportedly been the host to a number of gold occurrences both within Quebec and neighbouring Labrador at the border of which two eastern most contiguous blocks of claims have shown prospectivity for banded iron formation (BIF) in terms of gold mineralisation in metamorphosed sedimentary units. The similar metamorphic sedimentary or mobile belt geological setting has been reported by Newmont Goldcorp in its world-class Éléonore gold mine, which is among the largest gold mines in Quebec.

Goldcorp holds over 3.8M ounces Au Proven & Probable Reserves (2018) in its underground Éléonore gold mine, hosted by Winterhouse property in the Fermont area of North Eastern Quebec. The high level of prospectivity in these areas where Kings of the North Corp hold mineral licences indicate the possibility of high-grade occurrences of gold and other base metals, including the prospective nickel-copper-cobalt and PGE mineralisation as discovered in some project area, according to the company’s reports. The summary of all the five licenses held by BWA through KOTN is as follows:

S.No

Name

Province

SRK Preferred Value (CAN$M)

Commodity

1

Hemlo North Limb

Ontario

1.5

Gold

2

Isoukustouc

Quebec

2.2

Nickel-Copper-Cobalt

3

Villebon

Quebec

2.7

Gold -Nickel-Copper-PGE

4

Nova Gold

Quebec

0.5

Gold

5

Winterhouse

Quebec

0.26

Gold

 

BWA Directors believe that in consideration to consultant SRK report and technical valuation, the acquisition of these five mining licence areas in Canada represent fair value at the SRK preferred valuation of CAN$7.2M. They are further of the view that there is considerable upside potential based on the maximum NPV valuation by SRK of CAN$138M. 

The acquisition of KOTN represents the material investment BWA had been looking for to build upon its interests focused on the mining sector, in addition to its existing licence portfolio in Cameroon, Central Africa. The company recently won a 2nd exploration license at Dehane on top of the 1st license at Nkoteng in Cameroon. As at 30 April 2019 the value of the BWA’s investment portfolio was of £608,169 (2018: £610,046).

Impact of COVID-19 Pandemic: Miners have commenced their operations since the Quebec government lifted the restrictions on April 13, earlier placed on non-essential travel within the province in response to COVID-19 pandemic.  The companies are now engaged in determining an acceptable path forward to protect its workforce and communities in addition to evaluating the impact of expected travel and logistical constraints required to comply with local regulations.

As per Cameroon’s National Institute for Statistics (NIS) report, the mining industry in Cameroon is among the worst-hit sectors by the spread of Covid-19. Out of a population of 26.5 million people, Cameroon has reported over 8,600 cases of Covid-19 but relatively fewer deaths. Around 76% of Cameroonian miners reported staff cuts due to the disrupted business activities on account of the pandemic.   

On 16 April 2020, the government of South Africa relaxed lockdown regulation, allowing miners in the country to restart operations at a 50% of capacity. However, the government has placed strict safety guidelines to follow, which also includes the screening of staffs to identify coronavirus symptoms. 

Overview of BWA Group: Originally established in 1932 as a textile company in Lancashire, BWA is AQSE Growth Market Traded Investment Company. From a small initial investment in a mining company with interests in Cameroon in 2015 BWA has since been actively seeking to build a portfolio of exploration permits for carrying out research of rutile sands in Cameroon through its wholly-owned subsidiary BWA Resources (UK) Limited. 

BWA further holds an investment in global payment solution provider Prepaid Global Services Limited, formerly called as Prego International. Currently, the investment is held as Available-For-Sale as the company plans to dispose of its investment in Prepaid Global Services Limited as opportunity permits. BWA Group’s stock closed at GBX 0.35 as on 19 June 2020.

Also Read: Pioneers of the Sector at the Helm of BWA Group

 

 


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