Business
Operational Update and notice
Operational Update and notice.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n RNS Number : 2165X Aurum Mining PLC 02 December 2010 \n \n\n\n\n\n\n2 December 2010\n\n\n\n\n\n\n\n \nAURUM MINING PLC\n(\"Aurum\" or \"the Company\")\n \nOperational update and notice of Board changes\n \nAurum Mining plc (AIM: AUR) is pleased to update the market and to outline the next steps for the Company.\n \nCapital Reduction\n \nThe capital reduction process to return cash to Shareholders is now virtually completed following approval by the Court yesterday. The capital reduction will become effective once the Court order has been registered at Companies House and this registration is expected to happen on 3 December 2010. The cheques relating to the capital reduction will be dispatched to Shareholders as soon as possible following the registration. The quantum of the cash being returned to Shareholders is £7.72m.\n \nCash at the end of the calendar year, with all the associated liabilities of the capital reduction discharged, is forecast to be approximately £840,000. This would equate to approximately 1.6p cash per ordinary share in the Company at the end of December 2010. \n \nCorporate Restructuring and Cost Base\n \nAs outlined in its strategic update on 15 July 2010, with the return of capital to Shareholders virtually completed, the Board is now taking steps to reduce costs in the Company as far as commercially appropriate while retaining the capability in the Company to ensure that value can be delivered to Shareholders from the residual cash shell.\n \nAs part of the measures to reduce costs, Mark Jones is stepping down as Chief Executive Officer with immediate effect. Mark is currently pursuing other business opportunities but, given his substantial expertise, the Company is pleased to announce that Mark will be remaining on the Board as a non-executive Director to assist Aurum in moving to the next stage of its evolution. \n \nChris Eadie is replacing Mark Jones as Chief Executive Officer with immediate effect.\n \nAs a further part of the rightsizing of the Company, Dr Colin Knight will be stepping down from the Board with effect from 1 January 2011.\n \nThe Company will continue to review the underlying cost base on a regular basis and further changes will be made to the organisational structure of the Company as and when appropriate. Cash pr...