Business
Final Results for the year en
Final Results for the year en.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n RNS Number : 5483Q Aurum Mining PLC 05 August 2010 \n \n\nAURUM MINING PLC (\"Aurum\" or \"the Company\")\n \n5 August 2010\n \nFINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2010\n \nAurum Mining plc (AIM: AUR) is pleased to announce its final results for the year ended 31 March 2010.\n \nReview of Activities\n \nThe last twelve months have been a period of significant consolidation and transformation for Aurum and the Company is now free and unencumbered to pursue its 'post Andash' strategy.\n \nAt the beginning of the period, the objectives of the Company were twofold - most importantly was the completion of the deal to dispose of the Group's Andash asset in the Kyrgyz Republic to Kentor Gold Limited ('Kentor') and secondly, following ratification of the Company's investing policy by Shareholders in November 2009, was the goal of finding a new and appropriate value adding project for the Company.\n \nAndash disposal process\nIt was of immense credit to the Board and management of the Company that we were able to announce the completion of the disposal of the Andash asset in December 2009. Gross proceeds for the disposal amounted to US$15m which included repayment of a US$13.5m loan. The Company also agreed to buy back a 10% stake in the Andash asset from its local partner in Kyrgyzstan, Investcenter Talas LLC ('ITL') for US$1.25m and this transaction was completed in January 2010.\n \nIn the Board's view, a further key step necessary to 'free up' the Company's balance sheet was to get a release from the warranties and indemnities that were given to Kentor under the terms of the Andash sale agreement which completed in December 2009. As long as these potential contingent liabilities remained, and regardless of how remote the risk of any claim actually was, it was always going to restrict the free cash position and hence the valuation of the company. \n \nIn March 2010, Aurum announced that it had agreed to sell its remaining 10% of Andash to Kentor, in a transaction that also released Aurum from the warranties and indemnities. Unfortunately, in April 2010, the well publicised unrest in Kyrgyzstan in which the President was overthrown and parliament was dissolved, led to this agreement lapsing.\n \nWith the on-going unrest and instability within the c...