The board of directors of Centurion decided that the best way to raise the necessary capital for the acquisition and exploration would be to list these leases separately on the AIM market of the London Stock Exchange. For this purpose a new company, Arrik Energy, Inc. was incorporated in Delaware.
Centurion and Arrik appointed Investec Bank as Nominated Advisor and Broker, Deloitte and Touche LLP as Auditors and Reporting Accountants, Ashursts Legal Advisors to the Company and Gaffney, Cline & Associates, Inc Independent Competent Person.
The AIM Admission Document was prepared and accepted by the London Stock Exchange and Arrik was approved for listing. Under extremely harsh market conditions Investec Bank was able to get commitments for $15 million from various institutions. This was not sufficient for the required exploration and the stated use of funds, in addition the terms had become exceptionally dilutive to Centurion as the major shareholder. As a result your directors decided to withdraw the offering and admission to AIM.
The documentation prepared for the admission to AIM, including a research report by Investec Bank and the Gaffney Cline Independent report, give the project upside potential and credibility, as a result a lot of private interest has been expressed in the project.
Centurion is currently negotiating with a private investor to raise the necessary funds to go ahead with the acquisition and exploration of the oil leases for gas and oil and then bring them into production.
Centurion Gold Holdings is a resource development company that acquires, develops and mines or spins out natural resource assets. The Company's mineral assets generally have combined the potential for a near term revenue stream and existing low cost production operations with turnaround opportunities. Based in South Africa, the Company is ideally suited to exploit new legislation implemented by the South African government in May 2004. This legislation enforces a "use it or lose it" strategy, whereby all mining claims must be prospected within a designated time frame; otherwise, such prospects revert to the state, thereby creating never-before-seen opportunities, particularly for smaller companies like Centurion. The Company has built a strong team of experienced management and operations mining professionals to exploit these opportunities and is positioning itself to become a major producer by continually implementing its "growth through acquisition" strategy.
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