CityView Corporation Announces Results of Independent Review of Company's Assets by PricewaterhouseCoopers

Wed Jun 18, 1:47 PM

PERTH, Australia--(BUSINESS WIRE)--CityView Corporation Limited (ASX: CVI; OTCBB: CTVWF) announced today results from an independent review conducted by PricewaterhouseCoopers of the Analyst’s Report on CityView's assets. The Report noted that, “based on a sum of the parts methodology [the Company’s assets] may be worth between US$182 million and US$296 million. This implies a value of between US$0.42 (AUD 0.45) and US$0.68 (AUD 0.73) per share.”

In reaching their conclusion, it was noted that:

The Company has three primary assets, which can be valued based on the Company’s estimates of its reserves and/or cash flow projections. Conversely, there are several other metal/oil projects and licence rights that are at an early stage of development and are expected to give a substantial rise to the value of the group in the future. At the moment the value of these other licence/rights is assumed to have no monetary value.

The portfolio of assets is comprised of:

  • Copper Licence in Cachoeiras de Binga area, held via 40.5% ownership interest in Fortitude Minerals Limited (“Fortitude”)

Fortitude owns, inter alia, five copper concession areas near the coast, copper /gold earth and diamond areas near Huambo and a gold area south of Huambo. The Cachoeiras de Bingo area was previously explored in the 70’s and 80’s and according to a study made in 1973 had reserves of 7.1 million tonnes of copper ore with a grading of 2.14%. The concession covers an area of 3,615 sq km.

  • 10% Net Profit Interest in the Luachisse and Nhefo alluvial diamond projects

CityView owns a 10% NPI in two alluvial diamond concessions held by Pensador’s Canzar Resources Limited. Production on these concessions is expected to begin in 2009. It is believed that revenue from this project will be generated ahead of any other projects the Company is involved with. Canzar is in the process of installing a 200 tonnes per hour production plant in order to deliver this revenue.

  • 4.26 million shares in Pensador

CityView currently holds 4.2 million share in Pensador, valued at US$20 per share, totalling to US$85 million.

 

Valuation Summary based on sum-of-the-part methodology (pre merger with Pensador)

   
Assets Value (US$m) CityView share (US$m)
Low High %-age Low   High
Cachoeiras de Binga 216 474 40.5% 87.4   191.9
10% NPI in Luachisse and Nhefo 99 192 10.0% 9.9 19.2
Pensador (4.2m shares) N/A N/A   85.0   85.0
Total       182.3   296.1
Number of shares       438,033,895   438,033,895

Price per share (US$ per share)

      0.42   0.68
 

A copy of the entire Report can be obtained by going to www.cityviewcorp.com

CEOcast, Inc. for CityView Corporation
Dan Schustack, 212-732-4300