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Union Atlantic Minerals places brownfield projects on care and maintenance

6th May 2020

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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JSE-listed Union Atlantic Minerals (UAM), previously known as Miranda Minerals, will place its brownfield exploration projects on care and maintenance, with minimum staff and fieldwork to be pursued until the Covid-19 pandemic has been ameliorated and the prospects for junior mining and exploration companies, as well as global commodity prices, improve.

The company confirmed on May 6 that no staff or consultants were active in the field on company projects and that, as a consequence, there was “no operational risk of Covid-19 for company staff or consultants”.

Regarding the company’s interest in two projects in the Northern Cape (Royzenbosch and Renosterkop), both projects require further limited geological fieldwork and metallurgical test work to advance and add value by updating and compiling competent persons reports and project valuations.

One of the objectives of UAM’s management in the medium term is to acquire a cash-generative project or business to supplement the two brownfield exploration projects in the portfolio and to source a cornerstone financier and shareholder to introduce cash and/or cash-generative projects to the company.

While the company’s strategy – articulated in its Integrated Report 2018 – remains intact, UAM said its management would consider “all viable strategies which would be value accretive and beneficial to shareholders in the long term”.

Meanwhile, UAM acknowledged that negotiations were still in progress with parties in relation to a potential strategic transaction which, if successfully concluded, may have a material effect on the price of the company’s securities.

While the market and operating conditions in the coming year are expected to remain challenging, owing to changing sentiment and policies and the negative economic environment as a result of the Covid-19 pandemic and subsequent lockdowns, UAM remains confident that it will be able to deliver on its strategy.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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