ADS 0.00% 0.1¢ adslot ltd.

the future is bright

  1. 2,273 Posts.
    If you have a couple of minutes read the letter from Chairman Fletcher Quinn below.

    I don't care what people say, but this company is going to be HUGE. I don't know when, but I am willing to wait. There is so much going on atm with ADS, and there is lots of key information coming out in the coming months.


    Letter to Shareholders from the Chairman of ADV Group Limited


    Dear Fellow Shareholder


    I am pleased to enclose a Notice of Meeting for an Extraordinary General Meeting (EGM) of ADV shareholders to consider a number of resolutions, including the proposed acquisition of Vertex Group (Middle East) WLL (“Vertex”).

    The accompanying Explanatory Memorandum contains substantial detailed information regarding the Vertex assets and supporting information for the other resolutions. However, I would like to take this opportunity to briefly outline some information relating to the EGM and your Company’s growth strategy.

    The key resolution to be considered at the meeting is the acquisition of Vertex, whose key assets include a suite of potentially world-class mining assets hosted in the Arabian Shield in Saudi Arabia. A detailed description of the projects which form part of this portfolio is provided in the accompanying Explanatory Memorandum.

    The completion of the Vertex acquisition will reposition ADV Group – for which approval is also being sought for a change of name to Citadel Resource Group Limited– as a leading Australian-listed international minerals company with an impressive pipeline of exploration and development opportunities.

    We are currently perhaps best recognised in the market for the Jabal Sayid Copper-Gold Project, which will underpin a long-life, low-cost copper mine. However, it is important to emphasise that we are much more than a just single-project company. We have 4-5 other projects within our portfolio that have the hallmarks of becoming significant gold and nickel
    exploration and development opportunities.

    Jabal Sayid has been our primary focus over the past 12 months mainly because the terms of our farm-in agreement required our resources to be focused on a substantial drilling program at Jabal Sayid. Over the past 12 months, using the funds advanced by ADV, Vertex has boosted its Jeddah Exploration Office Team with six full-time geologists, two senior field
    technicians, six field assistants, and two operations & logistics people now in place. This has enabled the team to be divided into two streams – one is continuing to focus on Jabal Sayid, and one is now focusing on our other exciting projects.

    We expect to commence a 5,000m drilling program at the Jabal Shayban prospect in November as soon as a third drilling rig, an RC rig, arrives on site. Jabal Shayban currently has a significant JORC Compliant resource at an attractive grade. The deposit is also open in all directions and the resource has the potential to be increased rapidly through step-out drilling.

    Jabal Shayban is also located on the southern extension of the Jabal Sayid belt and, with some of the deeper holes intersecting significant copper and zinc grades, we would not be surprised if the current gold resource represents the oxide cap of a Jabal Sayid-style VMS system. Further, the broader Jabal Shayban/Jabal Baydan area contains around 25 kilometres of prospective strike extensions which include many virtually unexplored surface gossans and ancient workings.

    The next project scheduled to be drilled after Jabal Shayban will be Lahuf, which comprises a strike extension of a significant gold operation that has produced ~6Moz.

    In parallel with this expanded regional exploration activity, we also intend to ramp up the pace of drilling at Jabal Sayid itself, with a third and fourth diamond core drill rig currently in transit to site and contracted to commence drilling from December. Within the next six months we also expect to see early results from field investigations of the Wadi Kamal nickel tenement.

    I encourage you to vote in favour of the proposed acquisition of Vertex, which will underpin the transformation of ADV Group into a substantial exploration, project development and future mining house.

    Some of the other resolutions to be considered at the EGM are corporate requirements while others relate to proposals to streamlining the capital and corporate structure of the “New ADV”. These include:
    • the proposed early conversion of the convertible notes on issue. This will immediately remove any liabilities to the note holders including future payments for interest;
    • the conversion of the existing 5 and 10 cent options into contributing shares with 5 and 10 cents to pay. These contributing shares, if called to be fully paid up, will bring just over $5 million into the company over the next 2 years rather than in early 2010;
    • the proposed issue of 1,000,000 shares to the Estate of Mr. Jeff Dalco. These shares are issued in payment for directors fees over the past 4 years. Sadly, these shares are being issued to Mr. Dalco’s estate after his unfortunate and unexpected passing late last year. We thank the family of Mr. Dalco for the time he spent on the board of ADV;
    • the placement of 5 million new shares under the acquisition prospectus. This minimum capital rasing to no less than 50 shareholders is a requirement of ASX Listing Rules as part of the company's change of activities; and
    • the proposed name change to Citadel Resource Group Limited, which symbolises the transformation of your company into a leading international resources evelopment company.

    The shareholder meeting will be held on November 28, 11.00am at the Holmes Room, The Four Seasons Hotel Sydney and I invite you all to attend. After the formalities of the meeting are concluded, the incoming CEO of your company, Ms Ines Scotland, will update
    shareholders on our progress in Saudi Arabia and your Company’s program over what will be an exciting next 12 months.

    I look forward to seeing you all at the Shareholders Meeting. For those who can’t personally make the meeting please complete the enclosed Proxy Form to ensure that you have your say in the future direction of your Company.






    Yours sincerely

    Fletcher Quinn
    Chairman
 
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