Annual Report and Notice of AGM

RNS Number : 5521C

Ovoca Gold PLC

29 June 2016

 

29 June 2016

Ovoca Gold plc

("Ovoca" or the "Company")

Annual Report 2015 and Notice of AGM

Ovoca is pleased to announce the publication of its Annual Report and Financial Statements for the year ended 31 December 2015. Please click on the following link to view the Annual Report and Financial Statements:

http://www.rns-pdf.londonstockexchange.com/rns/5521C_-2016-6-28.pdf 

Highlights 2015:

·      Ongoing search for new assets and business opportunities.

·      Ovoca Gold plc ("Ovoca") continues the litigation process connected to LLC Taymura debt. Taymura has been declared bankrupt; procedure of bankruptcy proceedings has been entered. Ovoca is the main creditor of LLC Taymura.

·      In two transactions in October 2015, Ovoca's CEO Kirill Golovanov acquired 16,256,203 ordinary shares of the Company, or 18.4% of Ovoca's issued share capital.

·      At 31 December 2015, Ovoca had net assets of US$23.1 million, which includes cash and cash equivalents of US$7.3 million

·      Ovoca purchased 5,800,000 ordinary shares in the issued share capital of the Company. To date since the beginning of the Company's share buyback programme, Ovoca has acquired 8.45% of its own share capital under the approved share buyback programme. The Company now has a total of 81,563,806 Ordinary Shares in issue excluding treasury shares and 6,895,000 Ordinary Shares.

Letter from the CEO:

In 2015 we continued our drive to settle the situation with LLC Taymura, an oil and gas company with high prospects in Siberia. In addition to that corporate issue, the recent improvement in market sentiment for precious metals has meant our investments there have increased in value, thus bolstering Ovoca's balance sheet. Additionally, there are new opportunities for the company to realize value for its Stakhanovsky license with gold prices up significantly from the end of 2015. Throughout 2015 we ensured that the Stakhanovsky license remained in good standing with the relevant authorities, although no field work was conducted. We continue to maintain the Stakhanovsky license and search for project partners.

Ovoca purchased 5,800,000 ordinary shares in the issued share capital of the Company last year. To date, Ovoca has acquired 8.45% of its own share capital under the approved share buyback programme which was approved by shareholders in October 2014. As our shares are trading at a discount to the cash and cash equivalents on our balance sheet, these buybacks are value accretive to shareholders. I personally believe in the value of Ovoca and became a significant shareholder in 2015.

The company's management and board of directors have examined several projects over the course of the year, but we have yet to close on any transaction. Assets prices in Russia remain high despite the fall in the Russian Ruble, and there are few projects outside the country where we can add value with minimal risk. However, we continue to look at opportunities.

Briefly about LLC Taymura: in 2015 Ovoca became the initiator of bankruptcy proceedings of LLC Taymura, an oil and gas production company located in Eastern Siberia, Russia which was an acquisition target of ours, together with another exploration project, ETEK, for a potential joint venture. Ovoca is the main creditor of LLC Taymura. The court's decision about the external monitoring procedure for LLC Taymura was issued in September 2015, and while the bankruptcy process is slow, Ovoca has a very good chance to recover at least some of its lent funds. I would note here that this receivable was impaired by Ovoca in 2014 and 2015, but we continue to participate in litigation proceedings.

In summary, we have made progress on resolving our legal issues and market conditions look favourable for existing assets. I would emphasize that we have a strong financial position and optimistic feelings. Please accept my deep appreciation for your decision to be with us.

The Annual Report and Financial Statements has been posted to shareholders today and is also available online at the Company's website, www.ovocagold.com.

Annual General Meeting:

The Notice of Annual General Meeting ("AGM") has also been posted to shareholders today. The AGM is convened to be held at Buswells Hotel, 23-25 Molesworth Steet, Dublin 2, Ireland on 16^th August 2016 at 3.00 p.m. The Notice of AGM contains details of all resolutions to be proposed at the AGM. Copies of the Notice of AGM are also available on the Company's website, www.ovocagold.com.

ENDS

Ovoca Gold Plc

Kirill Golovanov, CEO

 [phone]

Davy - NOMAD, ESM Adviser and Broker

John Frain / Daragh O'Reilly [phone]

 

END

 

 

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