ACR, the London Stock Exchange (LSE) mining junior, was spurned in Marange where its claim to diamonds is yet to be decided by the courts.
But the company has continued with its expansion within the country and neighbouring countries.
ACR last week announced it had issued 5,3 million shares priced at a penny each to Kipling Stone Investments Limited for a cash sum of US$700 000.
“The subscription proceeds have been used to acquire property assets from the subscriber,” said the resource development company in a statement.
The additional 5,3 million shares were listed for trading yesterday and this left the company’s issued shares at 363 402 451, meaning that Kipling Stone Investment now claim 1,45% in ACR. Kipling Stone is a relatively unknown investment company as several searches on the internet only retains the firm in relation to ACR name after last week’s deal.
Even ACR shareholders were left wondering where the company is located and whether the deal was worth it.
ACR shareholders responding to the new share issue emphasised that the yield was not for the shorters (those who buy stocks only to sell them within a short period) but for the patient investors.
“What can anyone say for the future, this is Zimbabwe after all,” said one shareholder at the LSE share chat, a platform for shareholders to comment and share ideas on companies in which they have invested.
“The country is rich in minerals so it is the right business to be in and I think (Andrew) Cranswick is the resilient chief executive officer needed here and the whole management seems free of corruption so if they get their legitimate chance ACR will fly.”
The same shareholder said it was encouraging that the resource development company still attracted capital.
“One day, but don’t think soon, just building base still, things will turn out good” added the shareholder. “Marange would be an instant saviour but what chance there for you shorters, you out and for those of us in for the longer term will stand to gain.”
Other shareholders, commenting on the same platform, said the company’s resource base was the key to the success of ACR.
“You need to understand the assets held by ACR, the wealth of the mines and look deep in to the history and success and failures of the mines themselves to know how the modern mining methods will see huge growth in Zimbabwe,” added another shareholder logged in as Goldrocks. “Remembering this is the financial backbone of Zimbabwe and has been for a while. ACR has good prospects and explorations continuing across the mining sector.”
Shareholders agreed that Marange was just one of many opportunities ACR has to work on as the company which started mainly as a gold miner has evolved to a multi-mineral approach.
ACR has acquired and developed a diversified portfolio of mineral holdings in Zimbabwe with prospects in Zambia and Mozambique.
Apart from the disputed Marange diamonds, the company has other interests along the Great Dyke where it mines gold and nickel.