It is an interesting AFR article. I selected a few paragraphs from the article Hold or Sell the dilemma for miners and copied them below that provide some news to KOR shareholders. I have the hard copy of the today AFR. The link to the article does not work properly. To read the full article, You can go to your local library, buy a copy of AFR or you could have the 14 days free trial with the link below.
Some budding miners may try to hold to assets until they at least start generating cash flows at the production stage, while others believe in strategic early stage divestments.
Andrej Karpinski, Chief Executive of emerging minerals explorer/developer Korab Resources, which announced that mining operations have resumed at the Bobrikovo goldmine in Ukraine, is planning to spin out the asset well before production is scheduled.
A soon to be called extraordinary general meeting has been planned for approval of the distribution of shares in Bobrikovo asset to Korab shareholders, however , it is not expected to have too much trouble being passed, with Karpinski owning about 26 per cent of the company and directors being accountable for 36 per cent overall.
Where other more mature gold plays have slipped since the metal hit record highs in December 2009, share in the $30 million company have more than doubled over the same time. Yesterday, they hit the highest closing price in more than 2 years at 39c taking the gain over the past 12 months to more than 700 percent.
Korab, which is listed on the ASX and Berlin Stock exchange, hopes to list the Bobrokovo offshoot on multiple exchanges including Toronto and perhaps Ukraine to attract the interest of large European and North American Institutions.
The Company also has projects including gold and magnesium assets in Australia that it may also spin off.
KOR Price at posting:
39.0¢ Sentiment: ST Buy Disclosure: Held
