Restoring the Group to good standing
Administration
Asa Resource Group plc is formerly a London AIM listed mining and exploration company which had gold and nickel mining operations in Zimbabwe and diamond operations in South Africa. Previously it was known as Mwana Africa plc. In 2017 it experienced financial difficulties which caused the Company to enter into Administration in August 2017.
The financial challenges had been brought to a head as a consequence of perceived irregularities in Zimbabwean subsidiaries under the direction of Ning Yat Hoi and Kwan Yim Chiu, former executive directors who were assisted by other employees brought into the subsidiaries by them.
Post Administration
Asa Resource exited from a period of Administration under the supervision of the High Court in August 2020. Asa Resource is the holding company of a Group of subsidiary interests in companies in UK and Africa that include various legacy assets which were not disposed during the Administration.
A new Board of Directors was appointed to manage the innumerable challenges arising from both the effect of administration and the neglect of subsidiaries during the Administration period.
Shares in the company were formerly listed on Alternative Investment Market in London but were de-listed during the period of Administration. There is no current active market for the sale or purchase of shares.
The interests of the Group which have the most potential value are in Democratic Republic of Congo (DRC). These are gold mining exploration rights at Zani Kodo and some property interests.
Current status
The present focus of the Board is to restore the Group and the Company to good standing in all of the jurisdictions in which it operates. This includes regularising and clarifying its subsidiary interests and consolidating the Group so that the inherent value within its asset base can be realised for the benefit of all shareholders.
The actions of the Board have been limited by the ongoing effects of the worldwide Coronavirus pandemic restricting travel.
In the immediate foreseeable future the Board intends to establish an ongoing office and staff presence in Kinshasa DRC to maintain communication links with government and provincial officials, other stakeholders and subsidiary shareholders.
Legacy issues from the Administration remain and the Board is undertaking steps to conclude residual litigation with former directors and collect sums outstanding due to it so as to assist it in financing the expenditure perceived necessary to realise value from its assets in DRC.