30 Jun 2011 16:30
CONSOLIDATED GENERAL MINERALS PLC
Cancellation of Admission to Trading on AIM
30th June 2011 - Consolidated General Minerals plc ("CGM" or the "Company") announces that admission of the Company's ordinary shares to trading on AIM will be cancelled with effect from 07:00 am on Friday 1st July 2011 as it has not demonstrably met the requirement of the AIM Rules for Company's to the extent required by those Rules .
Key Points for Shareholders
1. The Company continues to progress investment opportunities in line with its Investing Policy and will continue to update Shareholders on key events via its website www.cgmplc.com;
2. Admission of the Company's ordinary shares to trading on AIM will be cancelled with effect from 07:00 am on Friday 1st July 2011;
3. The Company has set up a Matched Bargain Trading facility with Brewin Dolphin to enable Shareholders to trade CGM shares;
4. It is presently intended that the Company's CREST trading facility will remain in place;
5. The Company will strive to enhance liquidity in the Company's shares during the course of 2012; this could include applying for admission on an exchange or a corporate transaction.
Effect of the Cancellation on Shareholders
The principal effects of the Cancellation will be that:
(a) There will be no longer a formal market mechanism enabling the Shareholders to trade their CGM shares on AIM or any other market or trading exchange;
(b) The Company will not be bound to announce material events, administrative changes or material transactions nor to announce interim or final results;
(c) The Company will no longer be required to comply with any of the additional specific corporate governance requirements for companies admitted to trading on AIM; and
(d) The Company will no longer be subject to the AIM Rules and shareholders will no longer be required to vote on certain matters as provided for in the AIM Rules.
In addition, the Cancellation might have taxation consequences for Shareholders. Shareholders who are in any doubt about their tax position should consult their own professional independent adviser.
The Company will, however, continue to:
(a) Post regularly information relating to the Company's financial and business performance on its website (www.cgmplc.com) that is complete, accurate and timely;
(b) Commit to regularly meet its Shareholders and report on the Company's operational performance;
(c) Hold general meetings in accordance with the applicable statutory requirements and the Company's articles of association; and
(d) Continue to provide access to and/or provide copies of the Company's audited fiscal year accounts and unaudited interim accounts in line with the applicable statutory requirements and leading practice standards.
The Company's CREST trading facility will remain in place for so long as it remains economically viable to do so.
Share Dealing Following the Cancellation
The Company recognises that Cancellation will make it more difficult for Shareholders to buy and sell shares should they so wish. Accordingly, the Board has set up a matched bargain arrangement, following Cancellation, to enable Shareholders to trade CGM shares. Under this facility, Shareholders or persons wishing to trade shares will be able to leave an indication with Brewin Dolphin, who will operate the matched bargain facility, that they are prepared to buy or sell at an agreed price. In the event that the matched bargain settlement facility is able to match that indication with an opposite sell or buy instruction as the case may be, the matched bargain facility provider will contact both parties to affect the bargain. Details of the Brewin Dolphin Matched Bargain facility are available to Shareholders on the Company's website (www.cgmplc.com/investors/shareinformation/).
Update on Investing Policy
The Company continues to make good progress in line with its Investing Policy that was approved by Shareholders at the AGM on 16th December 2010.
On 24th May 2011 the Company announced that it had entered into a joint venture with CalMe SpA to jointly build and operate a clinker grinding plant in Beira, Mozambique. The Company continues to make good progress towards commissioning the Mozambique plant in late 2012 and a minimum of USD 8 million equity has been committed by the two joint venture parties to the project.
CGM is actively reviewing a number of other investments in clinker grinding projects in Sub-Saharan Africa. In addition the Company is evaluating two further investments that are in the metals sector and are in line with its Investing Policy. The Company looks forward to updating Shareholders as these projects progress.
Commenting on the cancellation Jean-Pierre Conrad, Executive Director of CGM, said: "We are clearly very disappointed to have trading in our shares cancelled from AIM despite the progress being made to implement the Company's Investing Policy. We remain committed to continue delivering under the Investing Policy and will strive to enhance liquidity in the Company's shares during the course of 2012 which might include admission on an exchange or a corporate transaction".
For Further Information Contact
Consolidated General Minerals plc
Robert Adair, Chairman + 44 (0) 7872 930 114
Jean-Pierre Conrad, Executive Director + 41 (0) 79 601 51 59
Brewin Dolphin (NOMAD)
Alex Dewar, Director + 44 (0) 1315 290 276
Notes to Editors:
Consolidated General Minerals plc's ("CGM") investment policy is to create shareholder value by identifying and acquiring holdings in businesses and ventures active in natural resources with a particular focus on the minerals (including industrial minerals) and metals sectors. At 31 December 2010 CGM had net assets of $20.9 million and no long-term debt or borrowings. As of the date of this release, the Company has approximately USD 20.3 million of cash on hand including commitments under the joint venture with CalMe SpA.