Corporate structure
The principal subsidiary company is Asa Headco Limited which holds the other subsidiary interests and is wholly owned by Asa Resource Group plc. The Directors of the Group are also the directors of Asa Headco Limited. The other subsidiaries fall into Explorations and Legacy Assets:
Explorations
Zani Kodo
80% owned subsidiary Mizako Sarl holds licences for exploration of the Zani Kodo area. The 20% shareholder is Sokimo Co Ltd, a DRC State owned mining company.
The Group has invested some US$55million in the Zani Kodo project of which some US$40m has been expended in drilling and tests.
Relations between the Group and Sokimo broke down during the period of administration and the Board is engaged in restoring both these relations and the undisputed title to the four licences.
A feasibility study was commissioned in 2016 to validate the economics of establishing and working mines in the Zani Kodo area.
Drilling has only covered some 1% of the licence areas but indications are that there is a substantial reserve of gold which is capable of economic extraction and processing on the sites.
Legacy Assets
Immokasai
97.3% owned subsidiary Societe Immobiliere Du Kasai Sarl owns property in Kananga DRC which comprises a 1960s four story block including 23 apartments, 7 studios, 10 offices and 11 shops. The property has problems with utility supplies and requires maintenance and refurbishment. There are significant rent arrears but a reasonably high level of occupancy.
Parc Selemba
100% owned subsidiary Parc Selemba Ltd owns a substantial residential property in Kishasa DRC which was occupied by squatters before and during the period of administration. Arrangements are in hand for the removal of the present occupiers in order that consideration may be given to the disposal of this property.
Sec Kambaye
46% owned subsidiary Sec Kambaye owns some 179,977 ha over two provinces in the Grand Kasai provinces of DRC with opportunities for agricultures, timber harvesting and electricity generation. Government of DRC are shareholders and the structure requires further capital.
MIBA
20% owned subsidiary Societé minière de Bakwanga SA (MIBA) has interests in diamond mining in kimberlite massifs at Mbuji Mayi. There appears to be significant outstanding liabilities owing by MIBA and the relationship is under consideration by the Board.