Blenheim Natural Resources PLC Conditional placing to raise £1 million (4727D)
April 27 2017 - 2:01AM
UK Regulatory
TIDMBNR
RNS Number : 4727D
Blenheim Natural Resources PLC
27 April 2017
27 April 2017
Blenheim Natural Resources Plc
("Blenheim" or the "Company")
Conditional Placing to Raise GBP1,000,000 and buy back of
deferred shares
Granting of Prospecting Licence for Menianbala in Southern Mali
to prospective investee company, Nashwan
Appointment of Technical Consultants
The Company is pleased to announce that it has raised a total of
GBP1,000,000 before expenses through a conditional placing of
222,222,222 ordinary shares of 0.1 pence each in the capital of the
Company ("Ordinary Shares") at a price of 0.45 pence per Ordinary
Share (the "Placing Price"), subject to the approval of the
resolutions granting the directors the authority to issue
securities on a non-pre-emptive basis, to be put to shareholders at
the Company's general meeting on 28 April 2017 (the "Placing"). The
Placing Price represents a discount of 14.3 per cent to the middle
market closing price of the Company's Ordinary Shares on 26 April
2017.
The Company will use GBP1 of the net proceeds of the Placing to
buy back and cancel all of the deferred shares of GBP49 each in
issue, pursuant to the authority granted by the shareholders at the
Company's general meeting held on 7 February 2017. The balance of
the net proceeds of the placing will be used by the Company to make
further investments in accordance with its investing policy,
including to fund the cash consideration to acquire a 30 per cent
interest in Nashwan Holdings Ltd ("Nashwan") (as set out in the
Company's announcement dated 30 March 2017), and to provide
Blenheim with general working capital.
In connection with the Placing, the Company has also agreed to
issue 11,111,111 warrants over Ordinary Shares to Cornhill Capital
Limited, the Company's joint broker (the "Broker Warrants"). Each
Broker Warrant entitles the holder to subscribe for one Ordinary
Share at an exercise price of 0.65 pence per Ordinary Share and
will be exercisable at any time for a period of two years from the
date of issue of Ordinary Shares pursuant to the Placing.
The Placing, which was oversubscribed, is conditional on and
subject to, inter alia, the passing of the relevant shareholder
resolutions at the general meeting of the Company to held on
Friday, 28 April 2017. As announced on 30 March 2017, the
completion of the acquisition of the 30 per cent interest in
Nashwan is subject to, inter alia, shareholders granting the
directors with the authority to issue and allot the share
consideration by 30 April 2017.
In connection with the conditional investment in Nashwan, the
Company has received notice from Nashwan that its application for a
prospecting permit for Menianbala in Southern Mali has been
successful. Menianbala is the second prospecting permit in the
Bouguoni lithium pegmatite province of Mali to be granted to
Nashwan. Nashwan has exploration licence applications pending over
the areas covered by both the Menianbala and Djidje prospecting
permits and Blenheim's investment in Nashwan is conditional upon
Nashwan successfully being granted exploration licences over both
its Menianbala and Djidje projects within 90 days of the date of
the share purchase agreement, or by such other date agreed between
the parties to the share purchase agreement.
Appointment of Technical Consultants
The Company is also pleased to announce the appointment of
corporate and technical consultants Plutus Strategies ("Plutus"),
to assist in the review and analysis of its current and potential
future investments, particularly Blenheim's initial conditional
lithium investment in West Africa.
As retained advisors, Plutus will work closely with the
directors of the Company to advise on the Company's investment
activities, providing technical input and analysis relating to the
Company's investments, identifying potential new investment
opportunities and assisting to evaluate future investment
opportunities that may arise.
Blenheim's Chairman, Chris Ells, commented: "The Placing will
provide Blenheim with the firepower to actively pursue its
burgeoning pipeline of investment opportunities with particular
emphasis on the lithium space in West Africa.
In addition, the appointment of Plutus will provide a key
supporting role to the Board, helping to deliver the Company's
investment strategy, including providing technical assistance in
relation to the previously announced lithium investment
opportunities. Plutus will complement the Blenheim team in
evaluating and developing existing and potential projects, helping
the Company to add and realise value for its shareholders."
Ends
For further information please contact:
Chris Ells Blenheim Natural Resources Plc +44 (0) 1622 844601
Colin Aaronson/Jamie Barklem/ Daniel Bush Grant Thornton UK LLP +44 (0) 20 7383 5100
Nick Emerson SI Capital Ltd +44 (0)1483 413500
Lucy Williams / Duncan Vasey Peterhouse Corporate Finance Limited +44 (0) 20 7469 0932
Colin Rowbury Cornhill Capital Limited +44 (0) 20 7710 9610
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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