TIDMALO
RNS Number : 3441H
Alecto Minerals PLC
07 June 2017
Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector:
Mining
7 June 2017
Alecto Minerals plc ("Alecto" or the "Company")
Issue of Further Convertible Loan Notes to raise GBP0.8 million
(gross)
Alecto Minerals plc (AIM: ALO), the African focused gold
exploration and development company, is pleased to announce that it
has raised GBP800,000 (before expenses) via the issue of further
Convertible Loan Notes on similar terms as those issued by the
Company, and detailed in its announcement on 17 January 2017 (the
"Notes").
The Mowana Copper Mine, located in north east Botswana, is
currently ramping up to full production capacity and, as announced
on 12 May 2017, the Company is on track to deliver production of
12,000 tonnes of copper concentrate in Q3 2017.
Alecto is simultaneously progressing the completion of its
acquisition of Cradle Arc Investments (Proprietary) Limited
("Cradle"), which, via its wholly owned subsidiary, owns the Mowana
Copper Mine, which will constitute a reverse takeover ("RTO")
pursuant to the AIM Rules for Companies. The Company anticipates
publishing an Admission Document, and seeking re-admission to
trading on AIM ("Re-Admission"), by the end of June 2017.
Accordingly, the funds raised from the issue of the Notes will be
used to provide a loan of up to US$1 million to Cradle to meet the
working capital requirements of the Mowana Copper Mine during the
ramp-up phase.
The additional Notes have been subscribed for by certain clients
(the "Noteholders") of Beaufort Securities Limited, the Company's
broker. The principal terms of the Notes are as follows:
-- The Notes are repayable by the Company on 2 December 2017.
-- Interest at the fixed rate of 20 per cent. representing, in
aggregate, GBP160,000, will be paid to the Noteholders and will be
satisfied by the issue of new ordinary shares of 0.01 pence each in
the capital of the Company ("Ordinary Shares") at a price of
0.06625 pence per Ordinary Share, being the mid-market price at
which the Ordinary Shares were suspended from trading on AIM on 21
December 2016. This will result in the issue of, in aggregate,
241,509,434 Ordinary Shares to the Noteholders (the "Interest
Shares").
-- The Noteholders have the right, but not the obligation, to
convert part of, or the whole of, the principal amount outstanding
under the Notes into new Ordinary Shares at any time. During the
first ten trading days following the date of Re-Admission, the
Noteholders can convert the principal amount of the Notes at a
conversion price equal to the lower of (a) the closing price per
Ordinary Share on the trading day immediately after Re-Admission
and (b) 80 per cent. of the closing mid-price per Ordinary Share as
quoted on AIM on the trading day immediately prior to the date of
receipt by the Company of the conversion notice in question (the
"Floating Price"). Following that initial ten trading day period,
the conversion price will be the Floating Price.
-- The Notes will not be converted to the extent that doing so
would trigger a mandatory offer for the Company pursuant to Rule 9
of the City Code on Takeovers and Mergers.
-- The terms of the Notes include customary terms of default
pursuant to which the Noteholders may demand immediate repayment
including in the event that the proposed acquisition of Cradle is
not completed.
Beaufort Securities Ltd and a client of Beaufort Securities Ltd
will be paid fees of GBP50,000 and GBP66,250 respectively in
connection with the issue of the Notes, to be satisfied by the
issue of 75,471,698 new Ordinary Shares and 100,000,000 new
Ordinary Shares respectively (together, the "Fee Shares"), both at
the price of 0.06625 pence per new Ordinary Share.
The Fee Shares and the Interest Shares will be issued to the
relevant parties shortly, and application will be made to the
London Stock Exchange plc for the Interest Shares and the Fee
Shares to be admitted to trading on AIM ("Admission") in due
course. It is expected that the aforementioned shares will be
admitted to AIM on Re-Admission, when the Company's current
suspension from trading is lifted. The Interest Shares and Fee
Shares will be fully paid and will rank pari passu in all respects
with the Company's existing Ordinary Shares.
Mark Jones, CEO of Alecto, commented:
"We are pleased to secure this additional CLN facility which,
together with the revenue currently being generated at the Mowana
Copper Mine from ongoing copper concentrate production, will go
towards fulfilling the mine's working capital requirements ahead of
effecting the first phase of our full scale production plan at
Mowana. It is intended that, during Q3 2017, at least 12,000 tonnes
of copper concentrate is produced from the Mowana Copper Mine and
delivered to its offtake partner, ahead of making a decision
regarding the construction of a Dense Media Separation plant, which
has the potential to then double output at the mine. The coming
months are expected to be transformational for Alecto and this CLN
will support us while we drive our business forward."
**ENDS**
For further information please visit www.alectominerals.com,
follow us on Twitter @AlectoMinerals, or contact:
Alecto Minerals plc Tel: +44 (0)20 7499 5881
Mark Jones
Strand Hanson Limited Tel: +44 (0)20 7409 3494
Andrew Emmott
Matthew Chandler
James Dance
Beaufort Securities Limited Tel: +44 (0)20 7382 8300
Jon Belliss
St Brides Partners Limited Tel: +44 (0)20 7236 1177
Elisabeth Cowell
Charlotte Page
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014.
Notes to editors:
Alecto Minerals plc is an African focused, copper and gold
exploration and development company quoted on AIM, with a
prospective copper project in Botswana in production, gold
exploration projects in Mali, Burkina Faso and Mauritania and a
development project with near-term gold production in Zambia.
In Botswana, the Company is, subject, inter alia, to funding and
shareholder approval, intending to acquire a 60% interest in the
Mowana Copper Mine, a producing copper mine and plant. Alecto has
also agreed a 10-year management contract for Mowana with its
partners and will receive management fees equal to 1.5% of
revenue.
In Zambia, the historical Matala and Dunrobin gold mines have,
in aggregate, a 760,000oz Au JORC Code compliant resource estimate
in the Measured, Indicated and Inferred categories at an average
grade of 2.3g/t Au. The Company is focused on bringing Matala into
low-cost production in the near to mid-term.
In Mali, the Company has secured a number of joint-venture
agreements, in-line with its strategy to retain exposure to the
value in its African gold exploration portfolio for little or no
cost; the Kossanto East project, which has an inferred JORC Code
compliant resource estimate of 6.72Mt grading at 1.14g/t Au for an
aggregate of 247,000 oz Au with a cut-off grade of 0.5g/t Au, is
under a joint venture agreement with Ashanti Gold Corp; the
Kossanto West Project is under a joint venture with Randgold
Resources Limited; and the 250 sq. km. Karan gold project in
southern Mali is under joint venture with Cora Gold Limited.
Alecto also owns the Kerboulé Project, located in the highly
prospective Birrimian-age Djibo gold belt in northern Burkina Faso,
as well as the wholly owned Wad Amour IOCG Project in Mauritania
which is at an exploration stage.
Accordingly, the Company has a strong, diversified project
portfolio with exciting exploration upside potential.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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