TORONTO, Jan. 14 /CNW/ - Polo Resources Limited (AIM and TSX: POL),
announces an update on its investments and Net Asset Value ("NAV") per
share as at 31 December 2010.
NAV per ordinary share: 7.06 pence1-5
The Company's issued share capital consists of 2,364,678,955 ordinary
shares of no par value each. None of these ordinary shares are held in
Treasury. The fully diluted share capital of the Company consists of
2,380,678,955 ordinary shares.
As at 31 December 2010, Polo's investment portfolio as a percentage of
NAV comprises the following:
Caledon Resources plc Ordinary
GCM Resources plc Ordinary
Caledon Resources plc 8.5% Convertible Loan Notes @ 47.5p3
Caledon Resources plc Loan Advance 4
Caledon Resources plc Loan Advance 4
Ironstone Resources Limited
Net cash and other
Share prices as at 31 December 2010.
Per share figures based on fully diluted ITM shares at a closing price
of 5.04 pence per Polo share.
Caledon 8.5% £2.5 million assumed converted into shares where share
price exceeds the conversion price.
Caledon loan advance plus facility fee repayable by 28 February 2011.
Unaudited net asset value per share as at 31 December 2010.
The NAV at 31st December 2010 would be restated to 7.43 pence on the
basis that the indicated offer price of £1.12p by Guangdong Rising
(GRAM) had become unconditional.
Update on Investments
During December 2010 the Company made a C$8 million investment in
Ironstone Resources Limited ("Ironstone"), a private Canadian company
which owns the Clear Hills Iron Ore/Vanadium Project ("Clear Hills") in
Alberta, Canada. Clear Hills currently has a resource of 203 million
tonnes of iron ore at a grade of 33% designated under Canadian National
Instrument 43-101 (NI 43-101).
Historic work (pre NI 43-101) in the 1950's estimated a resource of over
1 billion tonnes of iron ore at Clear Hills thus providing a good
opportunity for Ironstone to increase its NI 43-101 resource
significantly through its planned drilling campaign over the next few
months. In addition Ironstone is due to extract a 20,000 tonne bulk
sample as feed for a pilot plant later in the year as part of its work
towards a feasibility study on Clear Hills. The project has also
demonstrated significant vanadium by-product and gold assays in recent
core samples suggesting the potential for further credits from those
Caledon Resources plc ("Caledon")
On 13 January 2011 Polo announced that it has agreed to subscribe for
such number of new ordinary shares of Caledon at 90p per share in the
second tranche of a conditional placing (the "Placing") as will result
in Polo holding 29.9per cent of the enlarged issued share capital of
Caledon. Closing of the Placing is conditional upon the passing of
certain shareholders resolutions to be proposed at a general meeting of
Repayment of loans of £14.5 million and AUS$4 million due from Caledon
to Polo on 28 February 2011, together with associated fees, costs and
interest, will be set off against the amount due from Polo to Caledon
under the Placing. Polo will subscribe for 21,226,324 shares in the
placing resulting in a net outlay by Polo after set off, of
Following the successful conclusion of the conditional placing, Polo
will hold 83,311,521 shares in Caledon.
It is expected that the Placing will close on or about 4 February 2011.
GCM Resources plc ("GCM")
GCM continues to cement relationships with the key players within the
Bangladesh Government and there is almost universal acceptance that
coal has a unique role to play in meeting the country's energy
requirements. Similarly, it is now accepted that open pit mining is the
only feasible means of delivering the volumes of coal required in an
economically, socially and environmentally acceptable way.
The Phulbari Coal Project is the only coal project in the country that
has been subject to a full social and environmental impact assessment
and feasibility study and so this is the only project for which the
economics and timetable to development are known with any certainty.
Management believe it would take at least two years to bring one of the
other potential projects in the country to this stage.
During the six months ending 31st December 2010, Polo made several listed and non listed investments in
respect of which unaudited gains of £1.2 million were realised and
£700,000 were unrealised at the period end.
Polo is continuously seeking to identify undervalued investment
opportunities both for short term and long term investment in
accordance with its stated investment policy.
ABOUT THE COMPANY
Polo Resources is a natural resources investment company focused on
investing in undervalued companies and projects with strong
fundamentals and attractive growth prospects. The Company will
primarily invest in companies with producing assets and/or resources
and reserves that have been verified under internationally recognised
reporting standards. For complete details on Polo Resources: www.poloresources.com.
The AIM Market of London Stock Exchange plc does not accept
responsibility for the adequacy or accuracy of this release. No stock
exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein. All
statements, other than statements of historical fact, in this news
release are forward-looking statements that involve various risks and
uncertainties, including, without limitation, statements regarding
potential values, the future plans and objectives of Polo Resources
Limited. There can be no assurance that such statements will prove to
be accurate, achievable or recognizable in the near term.
Actual results and future events could differ materially from those
anticipated in such statements. These and all subsequent written and
oral forward-looking statements are based on the estimates and opinions
of management on the dates they are made and are expressly qualified in
their entirety by this notice. Polo Resources Limited assumes no
obligation to update forward-looking statements should circumstances or
management's estimates or opinions change.
SOURCE Polo Resources Limited
For further information:
|Polo Resources Limited|
+ 27 82 404 36 37
|Canaccord Genuity Limited|
Andrew Chubb / Bhavesh Patel
+ 44 (0) 20 7050 6500
Heenan Blaikie LLP
+1 416 643 6903
|Blythe Weigh Communications|
+44 (0) 20 7 138 3204