Business & Funding Update
02/03/2023 07:30
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.
2 March 2023
BWA Group PLC
(“BWA” or the “Company”)
Business & Funding Update
BWA (AQSE: BWAP), which has mineral exploration licences in
both Cameroon and Canada at various stages of development and is quoted on
London’s AQSE Growth Market, announces an update on its funding and working
capital position.
The position set out in the announcements of 13 October 2022, 18 November 2022
and 5 December 2022 and 16 January 2023 is largely unchanged. The board of
directors of the Company (the “Board”) continues to review alternative
sources of capital and opportunities for the Company. These include, but are
not limited to:
* Further issues of Loan Notes;
* Disposals of assets; and
* Seeking additional capital at a subsidiary level.
The Company now holds five Heavy Mineral Sands Licences for rutile
in Cameroon, increasing the total licences exploration area to 1,268 sq. kms,
and more than doubling the exploration area of the first 2 licences. And
additionally, BWA, still has two additional contiguous Heavy Mineral Sands
Licences for rutile applied for.
The Board is currently involved in discussion, with non-disclosure agreements
exchanged, with three listed companies in Europe and North
America involved in mineral exploration with a view to either entering into
JV Agreements or outright sale of some of its mineral licences. The Board are
awaiting responses from these initiatives. And any such investment or proceeds
realised could be into BWA, its subsidiaries or directly into projects.
The Board is cognisant of the current difficulties in raising funds on public
equity markets and is taking appropriate professional advice and as a result
the Company continues to be supported by its directors, associates and
shareholders through short-term loans.
As at 28 of February 2023 the Company had cash balances of £3,681 and current
liabilities of £220,505. The Board continues to seek to minimise any
further expenditure until a solution can be found.
Further to the announcement of 11 August 2022, that St-Georges Eco-Mining
Corp. ("SGEM") had commenced legal action in regard to their request to
convert part of their holding of convertible loan notes (“CLN”), BWA,
following consultation with its lawyers in both the UK and Canada,
continues to decline to accept the request until its existing legal action
in Canada is concluded as the CLN form an integral element of the action and
as result is in the process of filing a Defence to the SGEM legal action.
As a result of approaches between lawyers a legal standstill has been
negotiated in Canada between BWA and SGEM (and it is believed this will also
apply to the UK litigation as well), pending direct discussions between the
parties to ascertain whether a negotiated settlement can be achieved.
Further updates will be made as matters develop.
The Directors of BWA are responsible for the contents of this
announcement.
Ends -
For further information:
BWA Group PLC James Butterfield Chairman +44 7770 225253 enquiries@bwagroupplc.com
Allenby Capital Limited Corporate Adviser Nick Harriss/Lauren Wright +44 20 3328 5656
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