Agrigate Group Ltd.
African Opportunities Investment Capital Ltd. (AOIC) – Primrose Gold resumes production
African Opportunities Investment Capital Ltd / Key word(s): Miscellaneous Equity Story Press Release – AOIC 20th July 2011 African Opportunities Investment Capital Ltd. (AOIC) – Primrose Gold resumes production. AOIC is proud to report that its recent acquisition, Primrose Gold Mines (Pty) Ltd has completed its refurbishment of the existing gold processing plant, consisting of crushing, milling, free gold recovery circuit, cyanide leaching, carbon in pulp facilities and smelting. Primrose has already commenced production this week. It will start with a monthly production of 4 000 tons per month throughput which will ramp up over the next three months to 8 000 tons per month delivering from 15 to 30 kilograms of gold per month. The workforce of 100 employees is extremely excited that the mine will be back into production after a delay of 14 months after the anticipated sale transaction which failed due to non-performance of the purchaser. Primrose Gold was in full production before the failed attempt to acquire the mine 14 months ago, but came to a halt due to lack of maintenance and upkeep of the facilities by the non performing purchaser. The owner, Keith Hart has spent over R4m to refurbish the plant and put it back into production. Primrose Gold has always had the potential to operate profitably even at a low gold price. Primrose Gold confirms it has an underground mineable resource of 3,9m tons at an average recovered grade of 4.2 g/t and dump material on surface of over 10 million tons at an average grade of 1.3 g/t. It’s plant has a capacity of 15 000 tons per month throughput once the refurbishment is completed in 6 months. The gold smelter produces gold dorey bars, sold via Rand Refinery at the ruling gold price. The Primrose plant is positioned such that it will be the plant of choice for other surface material owners in the area, with reserves of similar grade in excess of 10 million tons. Primrose plans to quadruple its plant capacity over the next two years by building new plant and processing facilities in the area which will increase the output to 100,000 tons per month or 150 kilograms per month or around 57,000 ounces of gold per annum. AOIC is in the process of raising funds in order to meet its obligation in respect of the cash portion of its investment in Primrose Gold. The balance of the purchase price will be settled with AOIC shares and is subject to profit targets being achieved by the mine. In light of the record breaking gold price increasing without abatement this investment is certainly viewed by AOIC as a high yielding investment. AOIC prides itself on being a first to market, Emerging Market Private Equity Portfolio, with a specific focus on selected market segments. For more detail on the company and its activities please visit our website (www.aoic.co.za) or follow us on LinkedIN. Investors will also have the opportunity to attend AOIC’s investor presentations starting on 25th July 2011 in Frankfurt or request a presentation via info@aoic.co.za. End of Corporate News 21.07.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
132734 21.07.2011 |