Date: Aug 20, 2018
The company is undertaking reviews of all its assets as well as potential new investments in the vanadium sector.
Baraka Energy & Resources Ltd (ASX:BKP) will continue to focus on vanadium through its indirect legal rights and majority profit share in the Philippine Iron Sands-Vanadium Magnetite Project.
The company’s newly appointed board has begun a review of several advanced and early-stage resource projects that it believes will complement and enhance Baraka’s position in the vanadium sector.
Representatives of the board and technical consultants of the company will be in Southern Africa next week as part of this project identification and due diligence process.
The board has also started an immediate review of the technical aspects and legal structure of its investment in the Philippine project.
Majority share in Philippine project
Using funds raised from shareholders over the past several years, Baraka has obtained an effective 75% profit share distribution in the Philippine project through a ‘secured converting loan and profit-sharing agreement’.
More than $2.8 million has been directed to the project though loan monies advanced to an unlisted public company, Consolidated Iron Sands Ltd, and indirectly to its Philippine subsidiary Luzon Iron Development Group.
Baraka’s board is reviewing its payment obligations to this project and is also seeking to replace current directors of these companies with its own nominees, as provided for under the agreement.
Port and special economic zone nearby
The Philippine vanadium project comprises two exploration permits covering around 10,000 hectares, most of which is only 500 metres offshore.
