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Madalena Energy assigned convertible loan to BVI-based company

Canadian focused oil and gas company Madalena Energy Inc. made an announcement that Hispania Petroleum S.A. has assigned the convertible loan, provided by Hispania to the company, to KD Energy International Capital Limited, incorporated in the British Virgin Islands.

The Canadian company has provided its consent to the assignment, which is required pursuant to the terms of the Capex Loan, as the assignment was undertaken by Hispania and BVI-based KD Energy for succession planning of holding of all of the issued and outstanding common shares of each Hispania and KD Energy.

Under the terms of the loan, KD Energy will acquire or have the possibility to acquire more
than 20 per cent of the outstanding common shares in the capital of Madalena and become the control person of the company. It is expected that Madalena shareholder approval for the transaction will be sought at the company’s upcoming annual meeting of shareholders.

British source provides financial overview of BVI banking sector

According to the study made by British company Capital Economics and funded by the BVI government, the banks operating in the jurisdiction are owed US$919 million which are loans to the customers, and more than 90 per cent of the customers are from the BVI territory.

The report stated that there are six deposit-taking licences issued by the regulatory authority, and banking services are mostly limited to deposit taking and direct lending. The sources of most part of deposits into the BVI banks are domestic. Along with customer deposits, which made about 66% of funding on the BVI banking balance sheet in 2015, there are US$189 million of interbank deposits and US$623 million of issued debt, shareholder’s equity and other instruments. As at September 2015, the BVI banking system has US$2.4 billion in assets.

Capital Economics reported that much of the funding collected by BVI banks goes to their Caribbean and Latin America’s parents operations, so BVI is providing liquidity in US dollars to the neighbouring economies.

The banking sector of the British Virgin Islands employs 270 people. In 2016 it contributed US$34 million in gross value added, and paid US$5 million in taxes.

BVI mining corporation reported financial results for three months ended March 31, 2017

Talon Metals Corp. announced financial results for the three months period ended March 31, 2017. The BVI corporation reported net loss of $1.9 million, or $0.01 per share (basic and diluted), due to the fair value revaluation of the Resource Capital Fund VI L.P. unsecured convertible loan and administration expenses. The reported net loss compares to net income for the three months ended March 31, 2016, of $1.8 million or $0.01 per share (basic and diluted).

Capitalized exploration costs and deferred expenditures on the Tamarack Nickel-Copper-PGE Project of the company for the three months ended March 31, 2017 were $1.0 million, as compared to $21.2 million for the same period of 2016. The total capitalized exploration cost on the Project to March 31, 2017 amounted to $38.1 million.

Aura Minerals Inc. announced financial and operating results for Q1 2017

Aura Minerals Inc., the gold-copper production company which redomiciled from Canada to the British Virgin Islands,
reported financial and operating results for the first quarter of 2017. Net sales revenue announced by the company in the first quarter of 2017 decreased by 2%, as compared to the first quarter of the previous year, and gold production for the first quarter of 2017 was 11% lower compared to the same period.

During the first quarter of 2017, cash operating costs per ounce produced and per ounce sold were 3% and 9%, respectively, higher than the comparable period in 2016. All-in costs per ounce sold for the first quarter of 2017 was 19% higher than in the same period of last year, because of lower gold sales volume, higher production costs, general and administration expense and capital expenditures.