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Banro would consider share split
David McKay
Posted: Fri, 10 Feb 2006
[miningmx.com] -- BANRO Corporation, the Toronto-listed gold junior, said it would consider a share split in order to improve liquidity once the share price improved. “We know it’s a frustration,” said CEO Simon Village at a dinner at the Indaba Mining Conference earlier this week.
“We have discussed it [a share split] but it is not imminent. We don’t see improving liquidity at these levels,” he said.
Village said that many mining companies were in a position to mine gold but they had heavily diluted themselves. “This is not the case with Barno,” he said. The company has issued 32.65 million shares. On a fully diluted basis, some 37,06 million shares had been issued. The share price was last trading at C$11.03 having come off slightly from the day's high of C$11.73, slightly higher than its 52 week high of C$11.68
Banro Corporation has exploration control over most of
Twangiza-Namoya, a 120km gold belt situated on the Congo Craton, one of the world’s most prospective, but unexplored, Archean gold regions. There has been gold mining in parts of the belt dating from the 1960s, 850,000 oz was mined from Kamituga, but the full potential is relatively unknown.
Banro has identified about 9 million ounces of resources and hoped to upgrade its findings in reserves by mid-year ahead of feasibility study.
Village also said the corporation would consider joint venturing or even selling parts of its gold regions to a major mining company in time. “It would be optimal to bring in a partner and let the junior explore for ounces,” he said.
The DRC is aflood with international mining companies hoping to capitalise on the passing of democratic elections which must take place before June. In addition to Banro, Anglogold Ashanti, and Toronto-listed Moto Mines have prospects in the DRC’s Kilo-Moto gold region in the north-east of
the country. About 11 million oz have been produced from Kilo-Moto since about 1904.
Commenting on Twangiza-Namoya, Village said: “There is excellent potential to delinate more resources and add to the 8 million ounces already found by our company. “We’re operating in an area larger than the Ashanti gold belt (in Ghana) which supports several gold mining and exploration companies,” he said.
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