TIDMGWMO
RNS Number : 6498F
Great Western Mining Corp. plc
18 November 2020
GREAT WESTERN MINING CORPORATION PLC
("Great Western" or the "Company")
PLACING OF NEW SHARES AND ACCELERATION OF DRILLING ACTIVITY
Great Western Mining Corporation PLC (AIM - GWMO, Euronext
Growth - 8GW), which is exploring and developing multiple
early-stage gold, silver and copper targets in Nevada, USA, is
pleased to announce the successful completion of a placing to raise
gross proceeds of GBP1,100,000 through the issue of 550,000,000 new
Ordinary Shares (the "Placing") at a price of 0.20 pence each. The
Placing has been arranged by Monecor (London) Ltd., trading as ETX
Capital. The proceeds will primarily be used to accelerate the
Company's drilling activity. In addition, the Company is granting
275,000,000 warrants based on a ratio of one warrant for every two
Placing shares ("Placing Warrants") together with a further
20,000,000 warrants to be granted to Monecor (London) Ltd. ("Broker
Warrants"). Each Placing Warrant carries the right to subscribe for
one new share at a price of 0.30 pence per share for two years.
Each Broker Warrant carries the right to subscribe for one new
share at a price of 0.20 pence per share for two years.
PLANNED ACTIVITY FOR 2021
Over the past 12 months, Great Western has made great strides in
developing its precious metals asset base in Nevada and is now
raising new capital to take it to the next stage. Use of funds will
include:
-- Mineral Jackpot spoil heap recovery: Commercial development programme planning
-- Olympic Gold Project: Drilling at the Trafalgar Hills
Prospect and IP survey over the OMCO Mine extension
-- Rock House Group: Drilling at the Southern Alteration Zone prospect
-- Mineral Jackpot: Drilling at the Bass Mine prospect
-- Further evaluation of a short-list of new opportunities for gold and silver in Nevada
1. MJ Spoil Heap Recovery Commercial Project Development: The
Company is on track to produce first gold and silver from spoil
heap recovery before the end of this year on a trial basis, subject
to unforeseen last minute delays. Optimum commercial recovery for
the longer term is likely to be via construction of a cyanide
vat-leach facility on company property, currently being evaluated
and specifics of which will depend on a laboratory exercise now in
progress in the UK, using a consignment of air-freighted material.
The first batch of lab results are expected early in the New
Year.
2. Olympic Gold Project Drilling: In May 2020 Great Western
signed an option to acquire a 100% interest in the Olympic Gold
property in Nevada and has since carried out a Magnetometer survey
on the main leads over this 800 acre property. Over the last few
weeks this has been followed up by an infill Magnetometer survey,
using more powerful equipment to focus on the leads already
identified. Of the four primary leads, the first two scheduled for
fast-tracking are (1) the OMCO Mine Extension where the Company is
trying to identify the continuation of historically prolific gold
and silver veins to the east and south of a fault which was the
limit of previous exploitation. This will require an IP survey and
subsequent drilling to achieve a definitive result; (2) The
Trafalgar Hills prospect which has reached the stage where drilling
is required to evaluate it further.
3. Rock House Group (RH) Drilling: The gold and silver potential
of the RH Group of claims, never before explored or mined and
initially identified through satellite imagery, has been
established through surface rock and soil sampling, trenching and,
in recent weeks, through a follow-up Magnetometer survey. Drilling
will be the next stage in evaluating this opportunity.
4. Mineral Jackpot Group (MJ) Drilling: The five historic and
adjoining mines in mountainous terrain which make up MJ have been
further explored in 2020, doubling the previously known mineral
footprint for gold and silver and establishing connectivity between
all five mine sites, as well as establishing an extension to the
south-east. As access for a trenching vehicle is not feasible, a
small, manouevrable unit will be used to drill, initially at the
Bass Mine site, and follow the most promising veins so far
mapped.
5. New Ventures: Great Western has a wide range of prospects on
its existing acreage in Mineral County Nevada, including a number
of leads and prospects which have not yet been explored or
exploited. Nevertheless it is the Company's strategy to expand its
asset base in Nevada to increase the potential for more than one
produceable asset and to secure long-term continuity of production
in this relatively low cost environment. Several potentially
exciting opportunities have been identified and are being assessed.
Budget funds may be diverted to these new opportunities during
2021.
SETTLEMENT AND DEALING
Application will be made to the AIM Market of the London Stock
Exchange ("AIM") and Euronext Growth for a total of 550,000,000
Ordinary Shares, which will rank pari passu with the Company's
existing issued Ordinary Shares, to be admitted to trading.
Dealings on AIM and Euronext Growth are expected to commence on or
around 24 November 2020 ("Admission").
Great Western Chairman Brian Hall commented: "We are already
funded for our immediate needs and for completion of the 2020 work
programme. Adding these new placing funds will allow the Company to
commit to extensive drilling, with approximately GBP2 million net
cash and able to sign up equipment in a busy market. This will
enable us to move ahead strongly and drill the projects we are
working on, with the flexibility to deploy funds where they will
have the most effect and react to positive results with follow-up
work. Our drilling plans remain subject to regulatory consent which
we anticipate being able to obtain in a timely manner. We will as
always keep shareholders updated."
QUALIFIED PERSON
Information in this announcement has been reviewed by William
Cooper, who is the Chief Geologist and Exploration Manager of Great
Western Mining PLC. He holds a MSc in Mining Geology from the
Camborne School of Mines. He is a Member of the Australian
Institute of Geoscientists (MAIG) and is a Qualified Person as
defined in the Note for Mining and Oil & Gas Companies which
form part of the AIM Rules for Companies. Mr. Cooper consents to
the inclusion of the information in the form and context in which
they appear.
MARS
This press release contains inside information as defined in
Article 7(1) of the Market Abuse Regulations.
For further information:
Great Western Mining Corporation PLC
Brian Hall, Chairman +44 207 933 8780
Max Williams, Finance Director +44 207 933 8780
Davy (NOMAD, Euronext Growth Adviser
& Joint Broker)
John Frain +353 1 679 6363
Novum Securities (Joint Broker)
Jon Belliss +44 207 399 9400
ETX Capital (Joint Broker)
Thomas Smith +44 207 392 1494
Walbrook PR (PR advisers)
Nick Rome/Nicholas Johnson +44 207 933 8783
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