TIDMALBA
RNS Number : 4514G
Alba Mineral Resources PLC
25 November 2020
Alba Mineral Resources plc
("Alba" or "the Company")
Share Placing
Alba Mineral Resources plc (AIM: ALBA) is pleased to announce
that it has raised GBP1,200,000 (before expenses) through the issue
of 320,000,000 new ordinary shares at a price of 0.375 pence per
ordinary share (the "Placing"), conditional on the admission of
such new ordinary shares to trading on AIM ("Admission").
The proceeds from the Placing will be used to accelerate
value-enhancing activities across the Company's project portfolio
including some or all of the following:
At the Clogau-St David's Gold Mine in Wales:
- Phase 2 of the Company's underground drilling, bulk sampling and pilot processing programme;
- Phase 3 of the Company's surface drilling programme, targeting
further projected extensions to known payshoots;
- Dewatering of the Llechfraith mine area to allow for
underground exploration and development; and
- Commencement of the formal impact assessments which will form
part of the planning application for the reopening of the Mine for
commercial production.
At the Dolgellau Gold Exploration Project in Wales :
- Further phases of the surface trenching programme, targeting
some of the 10 regional gold targets discovered by the Company in
its 2019 regional soil sampling programme; and
- Re-interpretation of the historic regional aeromagnetic data using modern analytical software.
At the Gwynfynydd Gold Mine in Wales
- Reconnaissance site expeditions over the mine area and in-mine
risk, safety and rehabilitation surveys;
- Re-interpretation of the historical dataset and integration
into Alba's 3D geological model for the entire Dolgellau Gold
Field; and
- Ground-based geochemical and geophysical field programme
seeking extensions to the Mine workings.
In relation to the Company's Greenland assets:
- Signing contracts and making down-payments to secure the key
service providers (drilling, geology, logistics, transportation)
who will be engaged to carry out the Company's planned drilling
programmes at Thule Black Sands ("TBS") Ilmenite and Amitsoq
Graphite; and
- Further process engineering and laboratory testwork to refine
the saleable products from both TBS Ilmenite and Amitsoq
Graphite.
All work activities are subject to timely receipt of regulatory
and third-party approvals and contractor availability. The proceeds
from the Placing will also be used for general working capital
purposes.
George Frangeskides, Executive Chairman of Alba, commented:
"We are very pleased to have received this ongoing support from
investors at a price which is significantly above the last placing
price. This is a validation both of the strength of our mining
portfolio and of the value-added work we have completed since we
were able to get back into the field this summer following the end
of the first Coronavirus lockdown."
"We will put this funding to very good use as we look to push
forward with our ambitious plans both at home, where our Welsh gold
assets have recently been strengthened by the addition of the
Gwynfynydd Gold Mine, and abroad where our high-grade Thule Black
Sands Ilmenite project is an integral part of the emerging
world-class ilmenite province of north-west Greenland and where we
believe our high-grade Amitsoq Graphite project in southern
Greenland is very well placed to benefit from the exponential
growth in the electric vehicle sector in the coming years."
"In the near term, we expect to be in a position to release the
structural interpretation of our underground drilling programme at
Clogau-St David's this side of Christmas, together with preliminary
structural interpretation from the current surface drilling
programme which we also expect to have concluded before
Christmas."
Share warrants will also be issued to each subscriber in the
Placing, with one warrant to be issued for every two shares
subscribed for, for a total of 160,000,000 warrants. The warrants
will have an exercise price of 0.75 pence per share and an
expiration date of 24 months from the date of issue. The warrants
will also be subject to an accelerator provision, such that if at
any time during the 24 month duration of the warrants the 10-day
volume-weighted average price (VWAP) of Alba ordinary shares
exceeds 1.5 pence per share, the Company may give warrant holders
notice to exercise their warrants within 10 business days following
the Company's notice and to pay the exercise price in full within
15 business days following the Company's notice, failing which the
warrants will automatically expire.
The warrants will not be traded on any exchange and will
otherwise be issued subject to the terms and conditions set out in
a warrant instrument to be executed by the Company.
The Company's sole broker, Monecor (London) Limited trading as
ETX Capital, acted as broker to the placing and, in addition to
placing commission were issued 10 million share warrants with an
exercise price of 0.375p per share and an expiration date of 24
months from the date of issue.
Admission to AIM
Application will be made for the new ordinary shares to be
admitted to trading on AIM ("Admission"). It is expected that
Admission of the new ordinary shares will become effective at 8.00
a.m. on or around 1 December 2020. The new ordinary shares will be
issued credited as fully paid and will rank in full for all
dividends and other distributions declared, made or paid after
Admission and will otherwise rank on Admission pari passu in all
respects with the existing ordinary shares.
Total Voting Rights
Following Admission, the total number of ordinary shares in
issue will be 6,186,828,989. The Company does not hold any ordinary
shares in treasury. Therefore, the total number of ordinary shares
with voting rights will be 6,186,828,989. This figure may be used
by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in, the
share capital of the Company under the Financial Conduct
Authority's Disclosure and Transparency Rules.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the timing and granting of
regulatory and other third party consents and approvals,
uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of
unexpected events.
Without prejudice to the generality of the foregoing,
uncertainties also exist in connection with the ongoing Coronavirus
(COVID-19) pandemic which may result in further lockdown measures
and restrictions being imposed by Governments and other competent
regulatory bodies and agencies from time to time in response to the
pandemic, which measures and restrictions may prevent or inhibit
the Company from executing its work activities according to the
timelines set out in this announcement or indeed from executing its
work activities at all. The Coronavirus (COVID-19) pandemic may
also affect the Company's ability to execute its work activities
due to personnel and contractors testing positive for COVID-19 or
otherwise being required to self-isolate from time to time.
Actual results achieved may vary from the information provided
herein as a result of numerous known and unknown risks and
uncertainties and other factors.
For further information, please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 3950 0725
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray +44 20 7213 0880
ETX Capital (Broker)
Thomas Smith +44 20 7392 1494
Alba's Project and Investment Portfolio
Project (commodity) Location Ownership
Mining Projects
Amitsoq (graphite) Greenland 90%
----------- ----------
Clogau (gold) Wales 90%
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Gwynfynydd (gold) Wales 100%
----------- ----------
Inglefield (copper, cobalt,
gold) Greenland 100%
----------- ----------
Limerick (zinc-lead) Ireland 100%
----------- ----------
Melville Bay (iron ore) Greenland 51%
----------- ----------
TBS (ilmenite) Greenland 100%
----------- ----------
Oil & Gas Investments
Brockham (oil) England 5%
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Horse Hill (oil) England 11.765%
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END
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