Where's Phillip (Reese) going? (ie the current CEO).
We won't be well funded for long....see MiningNews article below: (hope no issue reproducing)
Curious deal involving Resolute-backed Manas falls over
25 May 2018
Michael Quinn
RESOLUTE Mining-backed Manas Resources looks to have torched over A$1 million in a somewhat curious-looking case that sees it now walking away empty handed from the Victoria gold project in Tanzania.
Whichever way you look at it, Manas' time in Tanzania was wasted.
Manas made a pre-payment of US$800,000 last year to a company called Cienega as part of a $1.8 million cash plus $2 million in shares transaction over ground in the multimillion ounce Lake Victoria gold district.
The balance was due upon the transfer of licences, a milestone that for unspecified reasons failed to occur.
The curiousness of the whole affair is that Cienega was the company Resolute divested its Tanzanian assets to in late 2015 when it ceased activities at the Golden Pride operation and exited the country.
Resolute subsequently became a substantial shareholder in Manas in the first half of the following year, around the same time as Manas first unveiled its deal to acquire the Victoria gold project.
Resolute continued buying Manas shares over the course of 2016, reaching more than 19% early last year - with Resolute's GM of corporate development David Kelly appointed a non-executive director at Manas in November 2016.
Whatever the background to the deal, Manas now says it's entitled to repayment of the $800,000 pre-payment should the vendor group on-sell the assets to a third party within the next 12 months.
It also said it's entitled to be repaid funds advanced to the vendor group since March 2017 for working capital and exploration activities on the Victoria gold project ground.
However it evidently has doubts as to whether Cienega will play nicely.
"While Manas intends to assert its legal rights to recover these funds, it has already made provision in its December 2017FY reporting to fully impair these amounts in its accounts should recovery of the funds not be possible," Manas said.
Manas, which spent many fruitless years trying to get a gold project off the ground in Kyrgyz Republic before popping up in Tanzania, is now trying its luck in Cote d'Ivoire.
Shares in Manas were down 20% to A0.4c in afternoon trade, capitalising the junior at $10.5 million.
Manas started the current quarter with in excess of $9 million cash.
MSR Price at posting:
0.5¢ Sentiment: None Disclosure: Held
