Appointment of Investment Man

RNS Number : 9775T

Ovoca Gold PLC

16 June 2009

 

Ovoca Gold plc ('Ovoca' or the 'Company')

Appointment of Investment Manager

Ovoca Gold has engaged an asset manager to help the company build a portfolio of gold and gold related stocks with a portion of the cash received from the sale of Ajax and subsequent sale of Polymetal shares earlier this year. Ovoca Gold is ultimately a company with exposure to the gold market and management believe that it is prudent to maintain that exposure while reducing the Company's risk of owning one stock. Therefore an independent professional asset manager has been retained on industry standard terms to invest some of the Company's cash balance into gold and the shares of liquid gold mining stocks. The Company will retain full, direct title to the portfolio and $10mn will initially be assigned to the manager.

Management continues to investigate the acquisition of exploration and development assets in the gold sector, but until such time as an acquisition is made, it is sensible to diversify away from cash and obtain exposure to gold directly or indirectly via gold shares as a way to preserve the purchasing power of the Company's cash and securities.

Mr. Leonid Skoptsov CEO of Ovoca commented:

'As we mentioned earlier in the year, Ovoca has been looking at ways to preserve its financial strength while the Company examines new opportunities for growth. The team at Ovoca Gold is bullish on gold and I believe the Company would do its shareholders a disservice if we sat in depreciating US dollars or other currencies that are all being outperformed by gold. Although Polymetal is an attractive company, proper risk management requires us to diversify.'

Ovoca Gold plc
Mr. Leonid Skoptsov CEO	[phone]
	[e-mail]
Davy
John Frain	[phone]

 

END

 

 

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