Premier Gold Resources Plc or Prospex Oil and Gas Plc.


Premier is a gold exploration and development company admitted to trading on AIM. The company owns 100% of the share capital of CAR (Central Asia Resources Ltd), a company which, in turn, hold 80% of the shares of Premier Asia (together, the ‘Group’). The Group focuses on gold opportunities in Central Asia, in particular the Kyrgyz Republic.
The company is not yet producting minerals and so has no income other than a small amount of bank interest. The company has been predominantly dependant on cash advances from Tridevi drawn down under the Convertible Loan Agreement, and as announced on 26 September 2014, in order to preserve the capital available, the Company has suspended all directors’ salaries. The company’s current working capital position is therefore extremely constrained.
The company through its 80% indirect investment in Premier Asia holds an interest in the Licence. Four gold prospects have been identified in the Licence area which is in Northern Tien Shan (about 80 km southwest of the capital, Bishkek). These prospects are early stage and current losses attributable to the asset as of the audited accounts of Premier Asia dated 31 December 2013 are Kyrgyz SOM 21,131,303. Significant additional  legal, political and social work needs to be carried out in the UK and in the Kyrgyz Republic for the Company to gain safe access to the Licence. There can be no guarantee at this point that safe access will ever be achieved.

The local staff and contractors of Premier Gold Resources have been subjected to both physical and verbal threats from section of the local community opposed to drilling on targets identified by Premier’s exploration programme on the Cholokkaindy licence area in Kyrgyzstan. These actions have prevented the Company from accessing the site over the last 30 months and from progressing the project further.
Premier has been trying unsuccessfully during this period to reach an agreement to facilitate safe access to the licence area. This has included repeated meetings with a wide range of stakeholders, including the Kyrgyz Government, regional and local administrations and residents of villages in the vicinity of the Cholokkaindy licence area. To date, this has not been successful in re-establishing access to the project area.
Further engagement with all stakeholders is required to attempt to move towards a solution but there remains no guarantee that any future negotiations will prove positive and even if the are successful tha timeframe of access remains uncertain. Premier has informed ACA Howe that the Company does not have funds available to undertake legal process or arbitration as this required the placing of significant bonds which are beyond the Company’s ability to pay.
Although significant expenditure has been incurred on the project to date in the Kyrgyz Republic and UK, this past outlay cannot be regarded to have a current value in a climate where safe working access to the mineral exploration project area is not possible to the Company (Or any associated organisation).
At this time due to lack of safe access, it is not considered to place a current valuation on the Cholokkaindy licence area. ACA Howe is of the opinion that at the current time, and whilst there is no reasonable likelihood of accessing the licence area in the foreseeable future, the Cholokkaindy licence area has no value.

The Company’s proposed new Investing Policy is to invest in and/or aquire companies and/or projects within natural resources and energy sector with potential for growth and income. The Company may also directly apply for new exploration licences or invest in existing licences. It is anticipated that the geographical focus will primarily be Europe, however, investments may also be considered in other regions to the extent that the Proposed Directors consider that valuable opportunities exist and returns can be achieved.
The proposed directors expect that investment will typically be held for the medium to long term, although short term disposal of assets cannot be ruled out if there is an opportunity to generate an attractive return for Shareholders.
The Directors believe that the Group’s success is highly dependent on the quality and loyalty of its employees, directors, officers and consultants. To assist in the recruitment, retention and motivation of high quality staff, as necessary, the Company must have an effective remuneration strategy.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s