ENP Newswire -
Release date- 22082014 - The board of SNR, the natural resources developer operating in
Telephone: (0044) 2074388162 Fax: (0044) 2072405122.
As you are aware,
It has been apparent to all shareholders and potential shareholders that the Company had been on a downward spiral with little or no positive activity appearing to take place and the share price has been decimated as a result of the same. This included legal wrangles with creditors in
The Company still has an outstanding issue with
Elitheni - The Mine
Elitheni has recently had an inspection by the
SNR together with its other Elitheni shareholders are committed to the upliftment and meaningful contributions to all regional and local stakeholders. To this end it will continue to fulfil its commitments in terms of its Social and Labour plan, details of which are contained in the last Annual Report of SNR.
What this endorsement of the mine means to the Company, amongst other things, is the ability to raise funds and the interest of potential parties will be heightened. Shareholders must understand that there is a new SNR board and Elitheni management in place and further board members and management will be added in due course, all of which will be communicated to shareholders and interested parties.
Moving forward, the parties involved are and will be from the mining industry and with the relevant experience and commercial drive to work towards a successful return on investment for shareholders. The Company would also ask that investors recognise that this is a new team in place and whilst there have been many unsettling changes for investors at SNR, the Company feels it is now, finally, on the right track.
In due course and once all the necessary evaluations are complete, a re-listing of
All of this still remains true and the overall opportunities will be developed further with the new funds envisaged. During the last year whilst the mine has been on care and maintenance the mine has still maintained a small local workforce as well as ensured compliance with all the regulatory requirements.
As part of the overall strategy to re-establish production, the work done during various technical reviews in 2013 will be consolidated to consider the best options as well as look at some alternative options on revenue generation linked to the primary strategy of Elitheni around an IPP and the local markets.
Some of these discussions are at an early stage, as these parties look at suitable proven technologies utilizing the large resources available to Elitheni. In order to progress mine development, experienced mining and processing contractors will be sought in the next few months as various options are considered to ensure and economic and sustainable mining operations.
SNR would like to remind its shareholders that the mine still has considerable value, much of it still to be assessed given that only 6% of the mining and prospecting licence areas have been drilled to-date. The new directors also intend to put in place the necessary mining plan, relevant personnel, funding package and communications plan to finally deliver shareholder value, as previously and reasonably expected by shareholders and to provide a return on investment which was the sole purpose of every shareholders investment in the Company thus far.
Elitheni is a valuable and worthwhile investment for SNR and shareholders will be kept up to-date on progress with Elitheni through the SNR and Elitheni websites, the London Stock Exchange RNS facility and various media communications.
Appointment of New and Additional Board Members
The Company is very clear in the direction it is taking and is very aware of the need to strengthen the board and management for SNR and Elitheni. These roles will be populated with personnel who have the relevant background for a company in SNR's sector(s) and a company of SNR's size, growth potential and relevant stock market(s) when re-listed.
These same principles apply to Elitheni with the Company putting in place the right people to do the right job for SNR and its shareholders, as well as satisfying the needs in the South African community as highlighted above. This will of course reflect BEE (Black Economic Empowerment) requirements too.
In regards to management, it has been very clear in the past that the geographical remoteness between the board in
Elitheni cannot find itself in the mess that transpired in late 2012 and 2013 and the Company will do everything it can to ensure there are no repeats of the same and that Elitheni is run effectively and profitably.
The Company has recently announced its intention to diversify its assets under management so as to not be too reliant on coal, one commodity and one price. The Millennium Energy deal was rescinded, but the Company still intends to diversify into other commodities which they feel will offer shareholders protection in commodity markets that they have clearly not had in the past, whilst equally seeking to add value in the share price when re-listed and this should be seen as a positive by shareholders.
As and when the Company makes such investments, this will be communicated to shareholders with a full explanation of why the Company has made this decision and why it is good for shareholders. It will also likely result in new board appointments to recognise that investment and the sector expertise that will be required.
Change of Registered Address
Investors will note that SNR changed its registered address to that of LCB where its relationship is now very good. More news will follow, as and when possible to do so.
In the past, the Company has relied heavily on the RNS channel, specifically the regulatory channel. Going forward the Company intends to execute a communications plan outside of the RNS channel that will run for an extended period.
This is intended to be educational and informative so that shareholders a) better understand their investment in SNR, b) feel more secure in their investment and are less affected by social media negativity, c) helps shareholders to understand the path the Company intends to travel and the return on investment the Company intends to deliver and d) feels as though they can trust the current management and soon to be appointed new management across both companies so that investors are secure in the investment decisions they have made and might subsequently make in SNR.
This communications plan, already mapped out and agreed by the SNR Board of Directors is key to gaining investor support, trust and new investment so that all investors can realise a return on their investment in SNR.
The Company is in direct discussion with various funding parties who may wish to invest significant monies in Elitheni and SNR. The Company recognises that investors have heard this before, but the new management assures shareholders and potential investors alike that this is so and the Company hopes to make announcements in the near future. The Company will also do its best to update shareholders on the position of the IDC grant alluded to by the previous board as soon as possible.
Contacting the Company
Shareholders should use the contact details on the SNR website, specifically the email address and members of the Board of Directors will respond as soon as possible. That said, the Company anticipates having a comprehensive and positive information flow enabling shareholders to be more knowledgeable on the Company than perhaps they once were which in turn will allow them to make better informed decisions. There is also a contact telephone number for the Company's new registered address.
Finally, the Company wishes to reassure shareholders that an awful lot of positive actions for the benefit of shareholders has taken place since the most recent board changes and that formal notices will be made through the LSE RNS channel, as well as the other channels mentioned above. The Company believes that SNR will be a shareholder success and requires a little time to make the necessary adjustments following the recent de-listing.
Tel: +44 2074388162
Tel: +44 7966149127
Tel: +353 86 8309181
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