TIDMSML
RNS Number : 3554H
Strategic Minerals PLC
03 December 2020
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
03 December 2020
Strategic Minerals plc
("Strategic Minerals", "SML" or the "Company")
Equity Fundraising
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing
mineral company, announces that the Company has issued GBP700,000
of new ordinary shares of 0.1p ("Ordinary Shares") via the issue of
175,000,000 new Ordinary Shares at a price of 0.4p per share.
The issue consists of:
Cash of GBP651,100, before expenses, raised by way of a placing
and subscription for 162,775,000 new Ordinary Shares in the Company
("Placing Shares") at a price of 0.4p per share ("Placing Price")
(altogether the "Placing"); and
Accrued salaries to certain directors and employees of GBP48,900
paid through the issue of 12,225,000 new Ordinary Shares in the
Company (the "Salary Shares") at the Placing Price.
Each Placing Share and Salary Share will also have a warrant
attached entitling the holder to subscribe for one new Ordinary
Share at a price of 1 pence per share with an expiry date of 30
December 2022, ("Warrants").
The proceeds of the Placing will be used primarily for the
renewal of equipment at the Cobre magnetite stockpile and for the
ongoing development of the Company's two other projects: Leigh
Creek Copper Mine ("LCCM") and the Cornwall Resources' ("CRL")
Redmoor Tin Tungsten project
Director Dealing and Director Salary Sacrifice
Peter Wale (Executive Director) has agreed to subscribe for
18,750,000 Placing Shares pursuant to the Placing. Details of Mr
Wale's subscription and the Directors' salary sacrifice are shown
in the table below.
Director Placing Salary Warrants Resultant % of Enlarged
Shares Shares to be issued Shareholding Issued Share
to be issued to be on Admission Capital
issued
Peter Wale (Executive
Director) 18,750,000 Nil 18,750,000 76,767,266 4.02%
-------------- ---------- -------------- -------------- --------------
John Peters
(Managing Director) Nil 8,200,000 8,200,000 65,200,000 3.41%
-------------- ---------- -------------- -------------- --------------
Alan Broome
(Non-Executive
Chairman) Nil 3,025,000 3,025,000 9,172,319 0.48%
-------------- ---------- -------------- -------------- --------------
Related Party Transaction
The subscription by, and issue of Warrants to Peter Wale in the
Placing and the issue of the Salary Shares and Warrants to Alan
Broome and John Peters as described above, (together the "PDMR
Transactions") constitute related party transactions pursuant to
AIM Rule 13 of the AIM Rules for Companies. Jeffery Harrison, the
independent Director for the purposes of the PDMR Transactions
considers, having consulted with the Company's nominated adviser,
SP Angel Corporate Finance LLP, that the issue of the Salary
Shares, Placing Shares and associated Warrants to these related
parties is fair and reasonable insofar as the Shareholders are
concerned.
John Peters, Managing Directors of Strategic Minerals,
commented:
"The need to update and renew equipment at the Company's
cashflow generating Cobre project has precipitated this placing,
which also allowed most directors, management and some employees to
invest at this time. Accordingly, the Company's financial position
has been strengthened providing capacity to move forward with the
development of its projects.
SML appreciates the continued backing from its largest
shareholders and welcomes fresh support from new investors.
The issue of warrants by SML, with an exercise price at
multiples of the current share price, indicates the rerating
potential the Board anticipates upon material progress at either of
the LCCM or CRL projects.
The Board is very encouraged at the current prospects for LCCM,
particularly given the extended move in the copper price which now
sits substantially above our feasibility study assumptions.
Meanwhile, the CRL team continue to actively work together with NRG
Capital to advance this project. "
Application for Admission
Application has been made for the Placing Shares and Salary
Shares to be admitted to trading on AIM ("Admission") and it is
expected that Admission will take place and that trading will
commence on AIM at 8.00 a.m. on or around 9 December 2020. Once
issued, the new Ordinary Shares will rank pari passu with the
Company's existing ordinary shares.
Total Voting Rights
Following Admission, the enlarged issued share capital of the
Company will comprise 1,909,297,949 Ordinary Shares of 0.1 pence
each. The Company does not hold any ordinary shares in treasury.
Consequently, 1,909,297,949 is the figure which may be used by
shareholders as the denominator for the calculation by which they
will determine if they are required to notify their interest in, or
a change to their interest in, the Company under the FCA's
Disclosure and Transparency Rules.
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name
1. Peter Wale
---------------------------------- -------------------------------------------
2 Reason for the notification
-------------------------------------------------------------------------------
a) Position/status
1. Executive Director
---------------------------------- -------------------------------------------
b) Initial notification
/Amendment Initial Notification
---------------------------------- -------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-------------------------------------------------------------------------------
a) Name
Strategic Minerals Plc
---------------------------------- -------------------------------------------
b) LEI
213800DICA5NPVOJT776
---------------------------------- -------------------------------------------
4 Details of the transaction(s): section to be repeated for (i)
each type of instrument; (ii) each type of transaction; (iii)
each date; and (iv) each place where transactions have been
conducted
-------------------------------------------------------------------------------
a) Description of the ordinary shares of 0.1p each
financial instrument,
type of instrument
Identification code ISIN: GB00B4W8PD74
b) Nature of the transaction
1. Subscription for shares
2. Grant of Warrants
---------------------------------- -------------------------------------------
c) Price(s) and volume(s)
---------------------- ----------------
Price(s) Volume(s)
---------------------- ----------------
1. 0.40 pence 18,750,000
-------------------------------------------------------------- ----------------
2. 1 pence 18,750,000
-------------------------------------------------------------- ----------------
d) Aggregated information
- Aggregated volume Price(s) Volume(s)
1. 0.40 pence 18,750,000
-----------
2. 1 pence 18,750,000
-----------
- Price
e) Date of the transaction 03 December 2020
---------------------------------- -------------------------------------------
f) Place of the transaction XLON
---------------------------------- -------------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name
1. John Peters
---------------------------------- --------------------------------------------------
2 Reason for the notification
--------------------------------------------------------------------------------------
a) Position/status
1. Managing Director
---------------------------------- --------------------------------------------------
b) Initial notification
/Amendment Initial Notification
---------------------------------- --------------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
--------------------------------------------------------------------------------------
a) Name
Strategic Minerals Plc
---------------------------------- --------------------------------------------------
b) LEI
213800DICA5NPVOJT776
---------------------------------- --------------------------------------------------
4 Details of the transaction(s): section to be repeated for (i)
each type of instrument; (ii) each type of transaction; (iii)
each date; and (iv) each place where transactions have been
conducted
--------------------------------------------------------------------------------------
a) Description of the ordinary shares of 0.1p each
financial instrument,
type of instrument
Identification code ISIN: GB00B4W8PD74
b) Nature of the transaction
1. Issue of shares in lieu of salary
2. Grant of Warrants
---------------------------------- --------------------------------------------------
c) Price(s) and volume(s)
---------------------------- -----------------
Price(s) Volume(s)
---------------------------- -----------------
1. 0.40 pence 8,200,000
-------------------------------------------------------------------- -----------------
2. 1 pence 8,200,000
-------------------------------------------------------------------- -----------------
d) Aggregated information
- Aggregated volume Price(s) Volume(s)
1. 0.40 pence 8,200,000
----------
2. 1 pence 8,200,000
----------
- Price
e) Date of the transaction 03 December 2020
---------------------------------- --------------------------------------------------
f) Place of the transaction XLON
---------------------------------- --------------------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name
1. Alan Broome
---------------------------------- --------------------------------------------------
2 Reason for the notification
--------------------------------------------------------------------------------------
a) Position/status
1. Non-Executive Chairman
---------------------------------- --------------------------------------------------
b) Initial notification
/Amendment Initial Notification
---------------------------------- --------------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
--------------------------------------------------------------------------------------
a) Name
Strategic Minerals Plc
---------------------------------- --------------------------------------------------
b) LEI
213800DICA5NPVOJT776
---------------------------------- --------------------------------------------------
4 Details of the transaction(s): section to be repeated for (i)
each type of instrument; (ii) each type of transaction; (iii)
each date; and (iv) each place where transactions have been
conducted
--------------------------------------------------------------------------------------
a) Description of the ordinary shares of 0.1p each
financial instrument,
type of instrument
Identification code ISIN: GB00B4W8PD74
b) Nature of the transaction
1. Issue of shares in lieu of salary
2. Grant of Warrants
---------------------------------- --------------------------------------------------
c) Price(s) and volume(s)
---------------------------- -----------------
Price(s) Volume(s)
---------------------------- -----------------
1. 0.40 pence 3,025,000
-------------------------------------------------------------------- -----------------
2. 1 pence 3,025,000
-------------------------------------------------------------------- -----------------
d) Aggregated information
- Aggregated volume Price(s) Volume(s)
1. 0.40 pence 3,025,000
----------
2. 1 pence 3,025,000
----------
- Price
e) Date of the transaction 03 December 2020
---------------------------------- --------------------------------------------------
f) Place of the transaction XLON
---------------------------------- --------------------------------------------------
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
www.strategicminerals.net
Follow Strategic Minerals on:
Vox Markets: https://www.voxmarkets.co.uk/company/SML/
Twitter: @SML_Minerals
LinkedIn: https://www.linkedin.com/company/strategic-minerals-plc
+44 (0) 20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Broker
Matthew Johnson
Ewan Leggat
Charlie Bouverat
Notes to Editors
Strategic Minerals plc is an AIM-quoted, profitable operating
minerals company. It has an operation in the United States of
America and Australia along with development projects in the UK and
Australia. The Company is focused on utilising its operating cash
flows, along with capital raisings, to develop high quality
projects aimed at supplying the metals and minerals the Board
considers likely to benefit from future supply and demand
factors.
In September 2011, Strategic Minerals acquired the distribution
rights to the Cobre magnetite tailings dam project in New Mexico,
USA, a cash-generating asset, which it brought into production in
2012 and which continues to provide a revenue stream for the
Company. This operating revenue stream is utilised to cover company
overheads and invest in progressing the Company's development
projects.
In May 2016, the Company entered into an agreement with New Age
Exploration Limited and, in February 2017, acquired 50% of the
Redmoor Tin and Tungsten project in Cornwall, UK. The bulk of the
funds from the Company's investment were utilised to complete an
initial drilling programme that year. This programme resulted in a
significant upgrade of the resource. This was followed in 2018 with
a 12-hole 2018 drilling programme which resulted in the resource
update announced in February 2019. In March 2019, the Company
entered into arrangements to acquire the balance of the Redmoor Tin
and Tungsten project. This was completed on 24 July 2019.
In March 2018, the Company completed the acquisition of the
Leigh Creek Copper Mine situated in the copper rich belt of South
Australia and brought the project into production in April
2019.
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