RNS Number : 4220B
Leyshon Resources Limited
27 October 2009
LEYSHON RESOURCES LIMITED
27 October 2009
Proposed investing policy
Annual Report and Accounts and Notice of Annual General Meeting
Further to the announcement made on 22 September 2009, Leyshon Resources Limited (AIM/ASX: LRL) ("Leyshon" or "Company") is pleased to report that it has today posted to shareholders its annual report and accounts for the year ended 30 June 2009 together with a notice of annual general meeting which includes resolutions (a) to approve the proposed sale of Leyshon's interest in the Zheng Guang Project to Heilongjiang Heilong Mining Company Limited ("Disposal")and (b) to adopt the investing policy set out below.
The annual report and accounts and the notice of annual general meeting can be obtained from the Company's website www.leyshonresources.com
Proposed Investing Policy
The Company's proposed investing policy is as follows:
PENDING THE INVESTMENT OF THE COMPANY'S AVAILABLE CASH PURSUANT TO THE POLICY DESCRIBED BELOW, THE COMPANY MAY EMBARK ON AN ON-MARKET SHARE BUYBACK PROGRAMME ON AIM AND ASX IF THE COMPANY'S SHARES TRADE AT A DISCOUNT TO NET TANGIBLE ASSETS.
IN THE VIEW OF THE DIRECTORS AND THE COMPANY'S ADVISORS THIS WILL PROVIDE THE LIQUIDITY NECESSARY TO ENABLE THOSE SHAREHOLDERS WHO OTHERWISE MAY NOT BE ABLE TO DO SO, TO SELL THEIR SHARES AT OR AROUND CASH BACKING PER SHARE.
THE COMPANY IS OF THE VIEW THAT THE URBANISATION OF 400 MILLION PEOPLE OVER THE NEXT DECADE WILL DRIVE CHINA'S GROWING DEMAND FOR MINERALS AND ENERGY AND THAT INCREASINGLY CHINESE COMPANIES WILL WISH TO ACQUIRE AND DEVELOP RESOURCE PROJECTS IN THEIR OWN RIGHT TO MEET THIS DEMAND.
THE COMPANY PROPOSES TO DRAW ON ITS SIX YEARS EXPERIENCE IN CHINA AND FOCUS ON ACQUIRING AND DEVELOPING MINERAL AND ENERGY PROJECTS IN THOSE COMMODITIES AND LOCATED IN THOSE COUNTRIES WHICH IT BELIEVES WILL BE OF INTEREST TO CHINESE MINING AND OTHER GROUPS FOR EITHER OFFTAKE, PARTNERSHIP OR SALE.
IN THE COMPANY'S VIEW, BASED ON ITS EXPERIENCE DEALING WITH PRIVATE AND STATE OWNED RESOURCE GROUPS, CHINA'S RAPID GROWTH METAL AND MINERAL PRODUCTION HAS TO A LARGE EXTENT BEEN BASED ON KNOWN DISCOVERIES. THE DIRECTORS BELIEVE THAT THE CHALLENGE IS GOING TO BE TO FILL THE DEMAND PIPELINE WITH NEW PROJECTS, WHICH DOES NOT APPEAR TO BE TAKING PLACE NOW THAT STATE FUNDING HAS BEEN REDIRECTED AWAY FROM THE PROVINCIAL BUREAU OF GEOLOGY AND MINERALS RESOURCES. AS A RESULT CHINESE COMPANIES ARE SEEKING TO ACQUIRE AND DEVELOP KNOWN RESOURCES ELSEWHERE IN THE WORLD.
THE COMPANY'S PRIMARY STRATEGY IS TO CONTINUE TO OPERATE FROM BEIJING, TAKING ADVANTAGE OF THE STRONG TECHNICAL BASE IT HAS ESTABLISHED WITH THE LOCAL DESIGN INSTITUTES, AND APPLY ITS TECHNICAL, FINANCIAL AND DEVELOPMENT SKILLS TO INVEST IN EARLY TO LATE STAGE PROJECTS THAT CAN BE ADVANCED THROUGH A COMBINATION OF AUSTRALIAN AND CHINESE TECHNICAL EXPERTISE TO A POINT WHERE, BASED ON THE COMPANY'S EXPERIENCE, THE PROJECT MEETS THE INVESTMENT CRITERIA FOR CHINESE GROUPS.
THE INITIAL FOCUS WILL BE THOSE COUNTRIES AND REGIONS WHICH RANK HIGHLY FOR CHINESE MINERALS AND ENERGY INVESTMENT SUCH AS AFRICA, SOUTH AMERICA, AUSTRALIA, CANADA, CHINA AND THOSE COUNTRIES CLOSE TO OR BORDERING CHINA.
THE COMMODITIES AND TYPES OF PROJECTS WILL BE THOSE WHICH IN THE COMPANY'S VIEW WILL BE OF STRONG INTEREST TO CHINESE GROUPS OVER THE EXPECTED INVESTMENT HORIZON AND ARE TYPICALLY EXPECTED TO BE HIGH VALUE MINERALS AND ENERGY WITH GOOD DEVELOPMENT POTENTIAL.
A KEY PART OF THE STRATEGY WILL BE TO BRING THE CHINESE GROUP(S) INTO THE PROJECT AT THE FINANCING AND DEVELOPMENT STAGE. THE COMPANY WILL NOT BE LOOKING INVEST IN THE CONSTRUCTION AND OPERATION OF PROJECTS ITSELF AND, ACCORDINGLY, THE COMPANY EXPECTS THE RETURN TO SHAREHOLDERS TO BE GENERATED BY THE CAPITAL GROWTH IN ITS PROJECTS.
THE COMPANY WILL BE LOOKING TO MAKE ONE OR TWO PROJECT INVESTMENTS AT ANY ONE TIME WITH AN EXPECTED INVESTMENT HORIZON OF 2-3 YEARS.
THE COMPANY DOES NOT ANTICIPATE THAT IT WILL REQUIRE ANY SIGNIFICANT DEBT FUNDING AS PART OF THE PROPOSE INVESTMENT STRATEGY.
THE DIRECTORS ARE EXPERIENCED IN EVALUATING ACQUISITION AND INVESTMENT OPPORTUNITIES AND REALISING VALUE IN THE COUNTRIES, COMMODITIES AND TYPES OF PROJECT TARGETED AND ARE ABLE TO CALL ON AN EXTENSIVE NETWORK OF CONTACTS AND CONSULTANTS WITH INDEPENDENT EXPERTISE IN THE SECTOR.
SINCE ANNOUNCEMENT OF THE PROPOSED SALE OF ITS INTEREST IN THE ZHENG GUANG PROJECT THE COMPANY HAS RECEIVING A NUMBER OF INVESTMENT PROPOSALS IN PROJECTS WHICH HAVE THE POTENTIAL TO MEET THE COMPANY'S INVESTMENT CRITERIA. AT THE TIME OF WRITING THE COMPANY IS CURRENTLY EVALUATING A NUMBER OF THE PROJECTS WHICH MEET THESE CRITERIA.
AS THE COMPANY IS DISPOSING OF ITS MAIN UNDERTAKING IT WILL CONSIDER THE APPLICATION OF ASX LISTING RULE 11.1.2 (SHAREHOLDER APPROVAL OF THE DISPOSAL) AND ASX LISTING RULE 11.1.3 (APPLICATION OF CHAPTER 1 AND 2 OF THE ASX LISTING RULES TO THE DISPOSAL) AT THE TIME OF ANY FUTURE ACQUISITION. DEPENDING ON THE SIZE AND THE NATURE OF ANY ACQUISITION THESE ASX LISTING RULES MAY APPLY TO THE TRANSACTION.
THE COMPANY WILL BE MINDFUL AT ALL TIMES OF MINIMISING EXPENDITURE AND PRESERVING THE COMPANY'S CASH BALANCE AND EVALUATING INVESTMENT OPPORTUNITIES AGAINST THE ALTERNATIVE OF RETURNING CASH TO SHAREHOLDERS.
ANY MAJOR INVESTMENT WILL BE PUT TO SHAREHOLDERS FOR APPROVAL.
For further information contact:
Leyshon Resources Limited
Paul Atherley - Managing Director
Tel: +86 137 1800 1914
patherley@leyshonresources.com
Seymour Pierce
Jonathan Wright
Tel: +44 (0)207 107 8000
http://www.leyshonresources.com
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This information is provided by RNS
The company news service from the London Stock Exchange
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