eBusiness Weekly
Tawanda Musarurwa
HARARE – JSE-listed mining group Pan African Resources (Panaf) is set to take over the assets of Zimbabwe-focused ASA Resource Group after entering into “exclusive negotiations” with the joint administrators of ASA.
ASA’s assets in Zimbabwe include Bindura Nickel Corporation, Freda Rebecca Gold Mine and an agribusiness venture. It also has copper and diamond operations in Congo and South Africa, respectively, as well another nickel mine in Botswana and a base metal exploration in the Democratic Republic of Congo (DRC).
ASA appointed joint administrators at the beginning of August last year after having hit by a number of shareholder scandals.
“The company is pleased to announce that it has entered into exclusive negotiations with the joint administrators of ASA Resources Group Plc) in relation to acquiring certain of the assets and liabilities of the group, which if successfully concluded may have a material effect on the price of the company’s securities.
“Discussions are ongoing and as such there can be no certainty the acquisition will conclude,” said Panaf in a cautionary statement to shareholders.
Panaf is a mid-tier African-focused precious metals (mainly gold) producer with a production capacity in excess of 190 000oz gold annually.
With the South African-headquartered mining firm largely focused on gold, it is not yet quite clear which of ASA’s assets it is specifically targeting.
Panaf’s intended acquisition of ASA Resources’ assets will provide competition for a privately-held bidder – RichPro Investments (RPI) – which made an offer for the group late last year. Apparently, RichPro is owned by China’s Zhejiang Hailiang Co Limited,
The ASA board had reservations about the RichPro offer in view of indications that the company had ties to former ASA chairman and chief executive Yat Hoi Ning.
Ning was sacked from ASA in April last year following allegations of fraud, of figures ranging between $4 million and $15 million related to gold producer Freda-Rebecca.
Also sacked was BNC chairman Yim Kwan and Freda Rebecca financial controller Roy Shum. Heads will roll if the ASA board accepts RichPro’s offer. The current ASA board is headed by David Murangari, with Toindepi Muganyi being the interim CEO.
“RPI reiterates its previously stated intention to seek the immediate resignation of, or procure the termination of appointments of, the current ASA board, and to investigate whether any actions taken by current or past directors of ASA are in contravention of applicable laws or regulations or their duties to ASA, including, but not limited to, the conduct of the ASA board throughout the offer period and specifically in relation to the appointment of the administrators by the ASA board,” said RichPro in an earlier announcement.
The ASA group has been struggling to pay creditors when debts fall due, indicative of problems lying deeper than the on-going shareholder spats.
Ning was appointed executive chairman of ASA Resources mid-2015 after the following the rancorous removal of founder and then CEO of Mwana Africa, Kalaa Mpinga.
