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Shareholder Update and Renewal of Cautionary Announcement
Union Atlantic Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/001940/06)
Share code: UAT ISIN: ZAE000254314
(“UNION ATLANTIC MINERALS, UAT or the Company”)
Shareholder Update and Renewal of Cautionary Announcement
CURRENT STATUS
The 2018 Annual General Meeting of shareholders was held in early August 2019 and a
directive for the lifting of the suspension was received on 29th August 2019 from the JSE.
The Company advised shareholders as per a SENS announcement on 29th August 2019 that the
JSE had consented to lift the suspension of trading in the securities of UAT, subject to the
completion of the placing and issue of 194,367,163 UAT shares for cash under the existing
General Authority for a minimum consideration of R5.8 million (five million eight hundred
thousand rand). As a consequence of negative conditions in the financial markets, as well as
generally poor sentiment towards junior exploration and mining companies worldwide,
management embarked upon sourcing financing via an alternative strategy of seeking a
foundation shareholder who would support the strategy of the Company as articulated in the
Integrated Report for 2018.
Management of the Company has engaged with interested parties and several Cautionary
announcements have been published on SENS as a consequence.
The Company announced on 27 December 2019 that the Audited Annual Financial Statements
for the year ended 31 August 2019 had been published on the Company website and posted to
shareholders on 20 December 2019. The Audited Annual Financial Statements contained no
modifications to the Reviewed Provisional Condensed Consolidated Results as published on
SENS on 29 November 2019. The Company has, however, withheld the publishing and posting
of the Integrated Report and AGM notice, pending certain requirements by potential investors
regarding certain resolutions to be contained in the AGM material. The board takes cognisance
of this delay and will be making a final decision to this end in the next 3 weeks and will update
shareholders on this at that time.
From February 2017, the Company has been audited five times and all major challenges were
addressed and ameliorated. An earn-in Agreement on Rensoterkop was entered into in early
August 2019. The final analysis of the remaining mineral rights portfolio can now be completed
and decisions taken, including a final restructure. Shareholders and management can thus freely
choose their own path and write their own strategy going forward into the future. The Company
is clean and in good shape.
OPERATING STRATEGY AND COVID-19
The current economic outlook in South Africa is a difficult one as a consequence of the
coronavirus pandemic (COVID-19) and uncertainties as to the length of time this lockdown
will extend into the future. The weak commodity markets worldwide as well as poor sentiment
towards junior mining and exploration companies have had an added negative impact on the
Company.
During this time of uncertainty, the Company and its brownfields exploration projects will be
managed on a care and maintenance basis with minimum staff and fieldwork being pursued
until such time as the COVID-19 pandemic has been ameliorated and the prospects for junior
mining and exploration companies, as well as global commodity prices, improve. Management
confirms that no staff or consultants are active in the field on Company projects and that, as a
consequence, there is no operational risk of exposure to COVID-19 for Company staff or
consultants.
The Company has an interest in two projects in the Northern Cape, Rozynenbosch and
Renosterkop. On both projects further limited geological fieldwork and metallurgical test work
is required to advance and add value by updating and compiling Competent Persons Reports
and project valuations. One of the objectives of management in the medium term is to acquire
a cash generative project or business to supplement the two brownfields exploration projects
in the portfolio and to source a cornerstone financier and shareholder to introduce cash and/ or
cash generative projects to the Company. Whilst the strategy articulated in the Integrated
Report 2018 remains intact, with the focus of the Company being on the exploration for, and
production of, metals required for the new technology age, management will consider all viable
strategies which would be value accretive and beneficial to UAT shareholders in the long term.
OUTLOOK
Whilst we expect market and operating conditions in the coming year to remain extremely
challenging as sentiment and policies change and the negative economic impact of the COVID-
19 pandemic and lockdowns are realized, management remain confident that we will be able
to deliver on the strategy initiated in February 2017. Management is constantly running a
process of identifying and securing a cornerstone investor and cash generative project to secure
the future of the Company.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement dated 18 October 2019 and renewed on, 29 November
2019, 10 January, 14 February and 23 March 2020, shareholders are advised that negotiations
are still in progress with parties relating to a potential strategic transaction, which if
successfully concluded may have a material effect on the price of the Company’s securities.
Accordingly, shareholders are advised to continue to exercise caution when dealing in the
Company’s securities until a further announcement is made.
Additional details pertaining to UAT can be found on the Company website
www.unionatlanticminerals.com
Centurion
06 May 2020
Sponsor and Corporate Adviser
River Group
Media and investor relations
James Duncan
jamesmairduncan@gmail.com
+27 11 849 4161
+27 70 336 4011
Date: 06-05-2020 10:25:00
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