Brinkley Mining eyes acquisition opportunities – chair

29th April 2009 By: Chanel de Bruyn - Creamer Media Senior Deputy Editor Online

JOHANNESBURG ( – London-based exploration company Brinkley Mining’s nonexecutive chairperson Richard Linnell expected 2009 to be an interesting year for the company with more potential investment opportunities to become available as a result of the global economic crisis.

“Brinkley Mining is now well positioned to take advantage of the current depressed market conditions and make acquisitions that will create significant value for shareholders,” Linnell said in a statement on Wednesday.

He added that the company had initiated a programme to identify and evaluate potential investment opportunities, following the disposal of its interests in projects in Chad, the Democratic Republic of Congo and Nigeria.

The “substantial fall” in the uranium price since 2007 and the decline in the share prices of Aim-traded junior uranium exploration companies had prompted the company to terminate these projects and to reposition itself as an investment company in natural resources.

The disposal of these assets had allowed Brinkley to reduce its cash expenditure and preserve its cash resources, asserted Linnell.

“This has placed the company in a strong position to enable it to take advantage of the opportunities that are arising as a consequence of current depressed worldwide market conditions,” he added.

All potential opportunities would be evaluated in accordance with its new investment strategy of acquiring holdings in natural resources, minerals or metals companies or assets, which the directors believed were undervalued and which could create value for the company.

A number of potential acquisitions had already been identified, although none had fulfilled its investment criteria. The identification and evaluation programme would, however, continue.

Meanwhile, the company had widened its net loss for the year ended December 31, 2008, to £13-million, compared with the £7,9-million net loss recorded in 2007.

This was largely as a result of a £9,3-million impairment of intangible assets and a £2-million loss on the sale of investments.


Brinkley has also reduced the carrying value of its South African subsidiary Western Uranium’s Waterval prospects, in the Karoo region, and its other South African interests.

A review of the geological and sample data for the Waterval prospect had confirmed that the project contained a small uranium resource, but that the grade and limited tonnages were insufficient to support a standalone operation.

The delineated resource was, however, large enough to potentially make a meaningful contribution to other uranium exploration companies active in the Karoo region, stated Brinkley, adding that it had started conducting a review of other nearby uranium exploration companies, which could be interested in acquiring the prospect.

In Southern Sudan, meanwhile, an application had been made for a renewal of a provisional prospecting licence for the 5 000-km2 project in the Eastern Equatoria State of Southern Sudan.

Exploration on the prospect was continuing in partnership with the New Kush Exploration & Mining company.