Following a recent boom in junior IPOs, Thursday marked perhaps the market’s most exotic new entrant so far.
GXG Markets, the Danish authorised small cap exchange, welcomed a rather unique investment fund called Kilimanjaro Capital (GXG:KCAP).
Its business concentrates on ‘future contingent natural resource licences’ (FCLs), which could potentially give the company the rights to natural resources in the event of a power shift in certain politically disputed territories in Africa. Or as the company itself explains it: “FCL contracts fully vest in the future upon decolonization.”
Kilimanjaro Capital has thus far built a portfolio of FCLs with The Republic of Cabina (a disputed territory in Angola that was formerly the Portuguese Congo), the Government of Southern Cameroons (the former British Southern Cameroons, which was annexed by Cameroun in 1972), and the Biafra Government in Exile (which purports to represent the continuation of the Biafra Republic, otherwise known as the Niger Delta region of Nigeria).
It stressed it is working closely with charities for peaceful change in these countries.
To those who thought it may have been engaged in a side show with its focus on future contingent assets, Kilimanjaro Capital has sent a strong message that it means very serious business when it recently obtained a public listing on the Danish stock exchange. Kilimanjaro Capital has the peculiarity of banking on the Republic of Cabinda, Southern Cameroons, and the Biafra Government in exile which are all states fighting for independence or the restoration of statehood with very legitimate cases. Zulfikar Rashid CEO of Kilimanjaro says in an interview with PAV that the company has now joined the ranks of public companies, and sophisticated investors can now come in to participate.
Recently there was this press release about Kilimanjaro making its debut on the GXG Markets, can you explain what this means?
Zulfikar Rashid: On August 29, 2013 Kilimanjaro Capital obtained a public listing on the Danish GXG stock exchange. This is highly significant as we are the only public company that focuses on future contingent assets.
With the entrance into the GXG what does this mean for Kilimanjaro Capital and what does it mean for the business engagements it has with its partner countries or organizations?
Zulfikar Rashid: It raises the stakes. Now the sophisticated investor can participate and Kilimanjaro joins the ranks of public companies.
It is a few days now since Kilimanjaro joined the GXG markets, how has the response been so far, any significant changes or developments witnessed so far?
Zulfikar Rashid: Yes, while volume trading has not really begun in the stock yet, there has been heightened industry and media awareness. We have numerous offers coming in to invest and participate.
We remain curious on your acquisition of portfolios with the Republic of Cabinda, Southern Cameroons, the Biafra Government in exile and others, how long is Kilimanjaro willing to wait to reap benefits from its investments?
Zulfikar Rashid: There are long and short term benefits. For example Forest Gate Energy already reached a deal for a farm out of some assets. However, we believe in our clients’ causes and are willing to wait as long as it takes for them to achieve independence which we feel will be a much shorter wait than many experts expect.
Besides politically disputed territories in Africa re there plans to diversify your investments into more profitable sectors in the short term?
Zulfikar Rashid :We are looking worldwide for some more conventional mining and oil assets to balance the portfolio but are main focus is on future contingent assets.
To those who are skeptical of your business strategy, what else can you add to make a stronger case for the public to take Kilimanjaro Capital seriously or to consider investing in it?
Zulfikar Rashid: The public listing; the GXG Markets approved the listing. It was not an easy process by any means but satisfied the skeptics.
What next for Kilimanjaro Capital after stepping into the GXG Markets, what should people watch out for from your company?
Zulfikar Rashid: There are many developments in our client countries. The situation in Bakassi is of great concern and we are closely watching developments in the liberated Mayombe zone of Cabinda.
Post by Maiombe Ouro e Minerais Ltd on Sept 26, 2013 4:22:07 GMT 4
Post by Admin on less than a minute agoonline.wsj.com/article/PR-CO-20130925-907622.html
Maiombe Ouro e Minerais Ltd, Reports Progress on Exploration Program
Maiombe Ouro e Minerais Ltd, (Maiombe) in which Kilimanjaro Capital Ltd. (Kilimanjaro) previously acquired a 49% non controlling interest now reports progress on Phase I of its exploration program. Maiombe is a private company which has a concession in the Cooperative Minier de Developpment du Mayombe "COMDDM” in northeast Cabinda near the Congolese (Brazzaville) border.
Maiombe reports that the Armed Forces of Cabinda – Forças Armadas de Cabinda (FAC) has now established sufficient control in the Mayombe Liberated Zone on behalf of FLEC (Front for the Liberation of the State of Cabinda) to allow exploration by Maiombe. The situation on the ground will now permit Maiombe personnel to reenter the COMDDM to evaluate gold and mineral resources. Previous exploitation has been by artisanal methods however Maiombe now plans to conduct mobile test drilling at undisclosed locations for gold and diamonds. The resources of the COMDDM are included in the legal case FLEC/Angola 328/06 currently pending before the African Union’s African Commission on Human & Peoples Rights (ACHPR) in Banjul, Gambia. FLEC is legally challenging Angola’s control and management of the onshore resources in Cabinda. Maiombe was historically the largest gold producer in Portuguese Africa and was the source of 90% of its gold production. Since the Cabinda conflict began in 1975, production has been sporadic.
In a recent statement FLEC’s Chairman, Aphonse Massanga, reiterated: “A Special mineral exploration license has been granted to Maiombe Ouro e Minerais Ltd and its assignees. Companies involved in resource extraction or exploration currently operating in Cabinda without authorization of this Government and FLEC are operating outside the protection of the law and will be held accountable.”
Kilimanjaro looks forward to the results from the Maiombe exploration project and a positive ruling from the African Union Banjul Tribunal in 2014 which will green light on site extraction.
Reports indicate that a company listed on the Europe-based GXG stock exchange, KILIMANJARO CAPITAL, has, on behalf of BIAFRA, has bought mineral rights from Biafra. Kilimanjaro’s capitalized cost for Biafra Rights was $45,000, according to its own report. Kilimanjaro capital was set up by the trio of Zulfikar Rashid, a Canadian of Asian descent, Jonathan Levy of Washington DC and Clement Chigbo from Port Harcourt in Nigeria. These rights were obtained under what is called “Future Contingent Licenses” with the Bifran “Government In Exile”. Although there is the Movement for the Actualization of the Sovereign State of Biafra(MASSOB), there are as yet no reports of any connection between this organization and Kilimanjaro. It is significant that these reports are coming at a time when there is heightened interest in Nigeria about the consequences of Nigeria remaining the way it is; with the Senate President calling for what he called a “Conference of Nationalities” albeit with a proviso that the only area not open for debate should be what he called the “dismemberment of the country”.
President Jonathan is also under pressure to agree to such a conference. While political observers may dismiss these calls as mere deflections and diversions from pressing political matters as well as avenues for political survival, that the “Government In Exile” of Biafra has begun to sell mineral rights are indications that President Jonathan and Senate president Mark may have more than just the survival of their political party or their own individual survival to tackle. Along with the Biafra venture, the “Government in Exile” of Cabinda in Angola and Bakassi Peninsula were also involved in these sales. It will be recalled that the Bakassi Area, inside Nigeria declared its own autonomy with its flag and anthem in 2012 even though the entire Bakassi peninsula had, by virtue of of a ruling by the International Court at the Hague, declared it a Cameroonian Territory. Observers also note the contiguity of these areas. Biafra starts from the Niger Delta areas of South East Nigeria up to the border with Cameroon. Bakassi lies within Cameroon’s Atlantic coastline and Cabinda is very close by, geographically. The entire region is flush with oil deposits hence the possession of these rights is a potential gold mine for the owners, a fact stated by Michael Judson. He is the chief executive of Forest Gate Energy, an investor in Kilimanjaro with stakes in these licenses. He stated that Forest Gate knows it is putting “money on a horse at very very long odds, but that the stake was so small it was worth it. That the investment cost pennies but the potential returns are off the scale”. This area is also contiguous with Sao Tome and Principe as well as Equitorial Guinea, The total area may be considered as Africa’s “Oil Region”. History may be repeating itself as one of the main fronts in the colonization of what is now known as Nigeria was the “Oil Protectorate” located in today’s Niger Delta and based on oil plam produce abundant in that Region. These “Governments in Exile” may be replicating that experience. The odds are on how these “Governments in Exile” will become de facto and de jure Governments in those areas. During the quest for Angola’s independence, there was a Government in Exile, at the time run by Jonas Savimbi, who was later exposed as working for Portuguese Intelligence Service determined to crush the Angolan Independence Movement. There was also a Cabinda self-determination movement whose aim was independence from Angola. Nigeria fought a war against the declaration of Biafra as an independent country, the effects which are still hounding both Biafran and other Nigerians after almost forty-three years. The odds, then are based on the capacity of these independence movements to forge a “united front”; united not only by geographical proximity but also by oil. This is also not new in the history of the “Scramble for Africa”. A new “scramble” may as well be on the horizon in this “oil belt”. Even though both Rashid and Levy deny thier involvement would promote violence and MASSOB always proclaim its adherence to non-violence, Kilimanjaros’ “Advisory Board” belie these claims. Ebenezer Akwanga is an activist with the Southern Cameroons Youth League, who escaped from prison in 2003, after being sentenced to 20 years and calls himself President of the Government of Southern Cameroons. Joel Batila is the “Head of Government of the Front for the Liberation of Cabinda Enclave” and Colonel Simon Wilce, who is part of the “Burma Rangers” seeking the overthrow of the government of Burma. Another member is formeR Yugoslav, Darko Trifunovic who authored a report denying the Srebrenica massacre. It will be interesting how violence will be avoided with these “advisory body”. For his part, Jonathan Levy has participated in lawsuits for the recovery of bonds allegedly defaulted on by the KMT while it was in power in mainland China as well as against bthe Vatican claiming redress for Holocaust victims. Into this mix comes the other agitations in Nigeria’s Niger Delta, with long years of devastation caused by the international oil companies with every Nigerian government turning a blind eye. These agitations eventually led to the judicial hanging of one of the foremost advocates for justice in the Niger Delta, Ken Tsaro Wiwa in 1995. Since then, the agitations had taken on a new violent form, with armed militias attacking oil installations and making demands for either greater control of their resources or outright independence. As at the time the previous government of Umaru Ya Ardua granted amnesty for those militants who would lay down their arms, the spate of attacks became drastically reduced such that at this time, those militants have been re-absorbed into the mainstream of political life. Some have been granted licenses to secure the vast oil pipeline network in the Niger Delta while others have been sent to different countries of the Western world for educational purposes. With Kilimanjaro’s background, it is not too far fetched to discover the connections between international capital and a new scramble that may be in the offing in the Delta; even as MASSOB claims affinity with non-violence, Biafra, as defined at the time of its 1967 declaration, included the area now known as the Niger Delta–and the definition has not changed. Furthermore, in spite of President Jonathan’s Ijaw origins, he has surrounded his presidency with largely Igbo loyalists prompting some observers to identify the connection between the demands of the Niger Delta and those of Biafra.
Kilimanjaro Capital, a "new breed" natural resource company based in Belize, is looking to acquire an interest in Tanzanian gold assets controlled by Sika Resources Inc., a Canadian company.
In a press release issued Friday morning, Kilimanjaro Capital announced an agreement in principle had been made with Sika Resources "to acquire an interest in world class gold assets in Tanzania."
Tanzania is the third largest gold producer in Africa, is investor friendly, and politically stable, due to its progressive, western-oriented political system.
Although Tanzania is already the third largest gold producing country in Africa, many regions are yet to be explored. According to the press release, the Sika Resources properties that interest Kilimanjaro Capital lie within the Lake Victoria Goldfields, an area mined by a number of resources companies with an estimated 60 million ounces of gold in reserves.
The properties controlled by Sika Resources contain Archean greenstone rocks that have "numerous northeast-southwest and northwest-southeast trending fault/shear zones," according to the resources page on Sika's website. These fault zones are similar to other known gold deposits across the Lake Victoria region.