Strategic Review and Investment (4835V)
12 Enero 2012 - 9:32AM
UK Regulatory
TIDMWSAG
RNS Number : 4835V
Woodburne Square AG PLC
12 January 2012
12 January 2012
Woodburne Square AG plc
(AIM: WSAG)
Strategic Review and Investment
Further to the announcement on 14 October 2011, the new Board of
Woodburne Square AG plc ('Woodburne' or the 'Company') has now
completed a major review of the strategic position and business
model of the Company. The conclusion of this review is that the
Company's previous business model of being a purely precious metals
focused investment company is unsuited to present market
conditions, and that Woodburne should widen its investing policy as
a broader natural resources focused investing company. In all other
respects its current investing policy will remain the same.
While still maintaining its objective of strategic investments
in natural resource companies, the Directors of Woodburne will now
seek to expand the Company's focus beyond precious metals into
other strategic minerals. Going forward, the Directors of Woodburne
expect to assist its existing portfolio companies to enhance their
respective valuations. Such enhancements can include: introducing
off-take buyers, facilitating access to capital markets, and
sharing of strategic market knowledge.
The Directors have identified graphite as one such strategic
mineral and are pleased to announce the Company has made an initial
equity investment in Graphmada Equity Pte Ltd ('Graphmada').
Woodburne has acquired an initial 15% equity stake in Graphmada
through the acquisition of shares in Graphmada for a total
consideration of US $1,275,000 in cash. Woodburne anticipates
further increasing its stake in Graphmada over the next 12
months.
Graphmada is an advanced stage graphite mining and production
company with operations in Madagascar. The Republic of Madagascar
hosts some of the highest quality flake graphite deposits in the
world. Graphmada expects to begin production toward the beginning
of the second quarter with the current plant capable of producing
approximately 12,000 tonnes per annum. Graphmada boasts an
extremely experienced technical and professional staff and
Woodburne will be working closely with the Graphmada team to
fulfill its goal of becoming a low-cost producer of high-quality
flake graphite for the expanding global market.
Graphite has numerous end uses both in traditional industrial
applications and emerging technologies. Graphite is expected to
become increasingly important as the demand continues to shift to
higher quality applications like mobile electronics, electric
vehicles and lithium batteries.
The market price for high quality, flake graphite today is
approximately $2,000-3,000/tonne following a period of strong
global demand. Graphmada sees such favourable demand dynamics
accelerating and believes is in an excellent position to penetrate
the flake graphite market characterized by high margins and limited
competition.
Gobind Sahney, Chairman of Woodburne, said: "In today's
challenging investment environment, we feel that identifying good
companies in niches with high value resources should provide
significant upside for our shareholders. We believe graphite
presents one such niche. We will continue to work hard to identify
other such opportunities."
The Company will be making additional announcements regarding
the full implementation of the strategic review in the near
future.
Enquiries:
Woodburne Square AG plc
Gobind Sahney +44 (0) 207 467 1700
Libertas Capital Corporate Finance Limited
Sandy Jamieson +44 (0) 20 569 9650
This information is provided by RNS
The company news service from the London Stock Exchange
END
STRBTMATMBJBBMT
Woodburne Sq (LSE:WSAG)
Gráfica de Acción Histórica
De Sep 2024 a Oct 2024
Woodburne Sq (LSE:WSAG)
Gráfica de Acción Histórica
De Oct 2023 a Oct 2024