VDM Group Limited (ASX:VMG) Provides Quarterly Activity Update
Angolan Projects Dispute
VDM Group Limited (ASX:VMG) is currently engaged in a dispute concerning its Angolan projects. Its joint venture partner, Pebric Mining and Consulting LDA, has claimed full ownership of the Cachoerias do Binga and Cage Bengo projects, contrary to the joint venture agreements. VDM has been informed that it must increase its funding for a reduced ownership percentage, the specifics of which remain unspecified.
As a result of this dispute, no work has been conducted on the Angolan projects during the current quarter. VDM is currently uncertain regarding the tenure of the mining licences and the status of the joint venture. The company has enlisted legal representation in Angola for clarification on its interests and rights.
Trading Suspension
On 20 November 2023, the ASX suspended VDM’s trading activities due to a perceived inadequacy in its operations, breaching Listing Rule 12.1. VDM is exploring various business opportunities to demonstrate compliance with this rule and has engaged K&L Gates Legal for assistance. Updates will be provided to shareholders as developments occur.
New Project Opportunities
The company is evaluating new opportunities primarily in critical minerals including uranium, copper, and lithium within Australia. VDM is focused on projects that align with its investment strategy and offer early cash flow potential while also ensuring they meet the ASX compliance requirements necessary for trading resumption.
Financial Position
As of 31 December 2024, VDM reported cash reserves of $2.072 million, a slight decrease from $2.102 million at the end of the previous quarter. There were no related party payments made during this period. VDM’s funding analysis indicates 69.07 quarters of funding available based on current cash reserves and estimated expenditures.
The company will keep shareholders informed of significant developments as they arise.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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