Sign up Australia
Proactive Investors - Run By Investors For Investors

Ortac Resources puts focus firmly on African exploration

Ortac Resources' diversified investment portfolio will now be streamlined, with the focus on two particular assets in Africa
Gold bars
The focus is now exclusively on gold in Africa

The newly appointed board members at Ortac Resources Ltd (LON:OTC) have wasted little time in setting out the direction they want the company to go in, after passing all resolutions at the company’s annual meeting on 8th September.

Chairman Nick von Schirnding and new non-exec Brian McMaster both bring extensive mining and restructuring experience to the board and have decided that Ortac should focus exclusively on its African exploration mining assets.  

This will see Ortac progressing its core gold and copper assets in the Democratic Republic of Congo and Zambia. 

Ortac now has significant investments and board representation in respect of two operating companies, Casa Mining Ltd and Zamsort Limited.

READ: Ortac Resources highlights ‘strong position’ as it sees recovering natural resources sector

The board believes the core investments in Casa and Zamsort present the best near term opportunity for Ortac to create value for shareholders, and that this strategy will ensure a new, focused, value accretive approach going forward. 

Zambian copper opportunity

It's taken a little longer to develope than expected, but the upside at the Kalaba copper cobalt project in Zambia looks sizeable. This was a project that for years was mired in a bureaucratic log-jam from which it has only recently broken free. That explains why such a promising resource wasn't worked up further during the last boom, and why Ortac was able to build up to a 14% stake on good terms at a time when funding was more scarce. 

The plan now is to build a demonstration plant to initiate small-scale production and generate a certain amount of cashflow, before scaling up. 

Gold upside in the Democratic Republic of Congo

Ortac owns 45% of Casa Mining Ltd, which owns the Akyanga gold deposit in the Democratic Republic of Congo. This has a well-established resource of 1.05 mln ounces of gold at 2.27 grams per tonne within a wider lower-grade envelope of 1.57 mln ounces at 1.65 grams per tonne.

Exploration work remains ongoing.

A wide range of options now under consideration for other assets

The Company continues to explore a number of strategic options with respect to its Kremnica gold project in Slovakia and will now seek to divest its interest in Andiamo, an Eritrean-focussed investment company. 

In Slovakia, the Company is in constructive discussions with a number of parties, both local and international and in the interim, will keep associated expenditures to a minimum.

Chairman pleased to be talking about "clear and simple direction"

"We are pleased to be able to set out the parameters of a clear and simple direction for Ortac's future,” said chairman Nick von Schirnding. 

“This strategic focus is underpinned by two potentially highly-value accretive exploration assets in the DRC and Zambia. We believe this is the right direction for us, in order to generate near term value for the Company's investors and sets a clear path to long term sustainable growth. Both of these projects have been substantially de-risked and with near term catalysts are at exciting times in their development."



View full ARCM profile View Profile

Arc Minerals Limited Timeline

Related Articles

Picture of nickel symbol on periodic table
January 17 2018
Prineas flagged the potential development of a high margin low-cost mining operation.
Picture of a copper car
May 01 2018
Based on 2018 projections, Aeris will have reduced debt from US$136 million to US$49 million over the last five years.
worker on a hill
April 18 2018
The turnaround plan at the Drakelands mine is beginning to take effect

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use