Mayfox Mining automating systems ahead of NSE listing

Mayfox Mining is automating its operations as it prepares to list on the Nairobi Securities Exchange (NSE) by the end of the year.

The local mining firm is installing an enterprise resource planning (ERP) solution to digitise management operations such as accounting, payroll, employee records, tax returns, stock management and regulatory filings.

The company is prospecting for gold in Turkana County and says the ERP system from British IT firm Sage will help it manage critical information in real time, enabling fast and responsive decision-making.

“Cost allocation in any business can only be done by having the right data and systems. In capital intensive businesses such us mineral exploration, cost allocation is essential if one is looking to become efficient and most importantly cost effective,” said Manga Mugwe, the chairman of Mayfox Mining.

The management software will provide Mayfox with accurate, up to date and relevant business and process information, assist in budgeting, forecasting and daily decision- making.

Mayfox said listing will allow it access to a wider and deeper pool of funds that it needs for further exploration in Turkana County.

READ: Miner to list on the NSE as it seeks exploration funds

The gold-digger has appointed Kestrel Capital as transaction adviser together with RSM Ashvir and Kaplan & Stratton as financial and legal advisors respectively.

Kestrel was also the transaction advisor for Stockport Exploration’s Sh100 million cash call of November 2013. Stockport Exploration is a Canadian firm prospecting for gold in Western Kenya and incorporated local shareholders through the placement.

The Mugwe family is the majority owner in the prospecting company through mineral exploration investment fund Mayfox Mining Mauritius Ltd, while European investors hold the remaining shares.

Investors entering Mayfox will be coming in at the initial stages of exploration. The company has been carrying out aerial surveys, which have identified 18 spots that show possible gold deposits, but more concrete data will be determined by the end of the year after which drilling can begin.

The Murulim Hills, Kalempus Field and Lapur Range sites in Turkana County are estimated to also have copper, nickel, lead and uranium deposits.

The remote county is also rich in oil and is expected to soon commence commercial production at oil fields operated by Tullow and Africa Oil.

The long time between exploration and shipment of minerals means that investors and the government will have to wait at least until 2017 before Mayfox can begin reporting revenues.