China Africa Resources to scotch reverse takeover speculation by launching as an investment company - sources

Thursday, 6 April 2017, 4:15 pm

Remember my tale about about China Africa Resources? (in case you don't, here is the link:

Well, I hear followers of this AIM-listed tiddler are on the cusp of receiving some hard news, some of which is likely to be quite unexpected.

China Africa Resources - which is in the process of changing its name to Pembridge Resources - is poised to relaunch as an investment business under Rule 8 of the AIM rules for companies. An announcement could be made in the next few days, according to my industry sources.

This might surprise some of the bulletin board punters, who have been expecting a reverse takeover announcement as it's the standard move for a cash shell and one that is generally required by AIM rules.

Over the last few weeks David Linsley, the newish chief executive of China Africa Resources, has recruited a heavyweight team of mining specialists as directors or advisors and, according to sources, he wants to use their experience and network of contacts to make a series of mining investments.

One person who has heard of his plans says Linsley - one of the founders of Cross Asset Management - is going to run Pembridge like a private equity firm, taking total control of the mining operations wherever it invests.

AIM rules state that: "within six months of becoming an AIM Rule 15 cash shell, the AIM company must make an acquisition or acquisitions which constitutes a reverse takeover under rule 14. For the purposes of this rule only, becoming an investing company pursuant to rule 8 (including the associated raising of funds as specified in rule 8) will be treated as a reverse takeover.”

Rule 8 states that: "where the applicant is an investing company, a condition of its admission is that it raises a minimum of £6 million in cash via an equity fundraising on, or immediately before, admission.”

So, investors should expect an roadshow in the not too distant future...

[Disclaimer - the information on Betaville does not consitute any form of investment recommendation and is not intended to be relied upon by readers in making, or refraining from, any investment decisions].

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