Leyshon Resources Limited (AIM/ASX: LRL) ("Leyshon" or the "Company") activities during the quarter focused on simplifying the Company's corporate structure which would ultimately enable the Company to pursue an investment transaction, and seek re-listing on the Australian Securities Exchange ("ASX").
Restructuring InitiativeAs part of the Company's restructuring and continuing focus on expenditure reduction, Leyshon has been engaging with the key stakeholders in the Mt Leyshon mine site as it reviews the long term holding of this legacy asset. At Mt Leyshon, the Company holds five Mining Licenses and an Environmental Authority covering the historical mining operations which are now subject to long term rehabilitation. The Company incurs significant costs associated with holding Mt Leyshon which cannot be relinquished until rehabilitation is completed. A restructure will depend on a suitable arrangement being negotiated with the stakeholders of the project to reduce the liabilities incurred by the Company. If this can be successfully achieved, Leyshon would be a viable entity that can go through a recapitalization and listing process. This process has taken some time given the scale of the project and number of stakeholders involved, but negotiations are at an advanced stage and the Company anticipates achieving a resolution during this quarter.
ASX Suspension UpdateThe shares of Leyshon have been suspended from trading on the ASX since 14 July 2014. ASX policy, in accordance with Chapter 12 of the Listing Rules, is to allow companies that have disposed of their main undertakings a six-month period within which to satisfy ASX that the company has a sufficient level of operations to justify continued quotation of the Company's securities on the ASX. The Company was not able to satisfy the ASX that it was in compliance with Chapter 12 and was suspended from trading on 14 July 2014.
The Company envisages that its shares will remain suspended on the ASX until such time as the Company completes a transaction and seeks re-compliance for listing on the ASX.
New Project OpportunitiesThe Company continues to review investment opportunities whilst its works through its corporate restructuring initiatives, although none are at an advanced stage.
Leyshon Resources Limited ABN 75 010 482 274
Level 3 / Suite 3, 1292 Hay Street, West Perth 6005, Western Australia
Tel: + 61 8 9321 0077 Fax: + 61 8 9322 4073
For further information please contact:
Leyshon Resources Limited
Corey Nolan - Non-Executive Director Tel: +61 7 3221 7770
admin@leyshonresources.com
Tenement InterestsLeyshon Resources Limited held the following interests in exploration tenements at the end of the quarter. There were no tenements acquired or disposed of during the quarter and no changes in the beneficial interests held by the Company.
PROJECT MOUNT LEYSHON | BENEFICIAL INTEREST 100% | TENEMENT ML 1546 | NAME Golden Star |
100% | ML 10144 | Mt Leyshon | |
100% | ML 10148 | Puddler Creek | |
100% | ML 10172 | Eastern Star | |
100% | ML 10173 | Southern Star |
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Leyshon Resources Limited issued this content on 29 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 02 May 2016 01:13:06 UTC. Original document available at http://leyshonresources.com/upload/documents/Investor/Releases/20160502_LeyshonMar2016Quarterlyreport.pdf |