Kennedy Ventures PLC Placing Announcement & Appointment of Joint Broker (4695S)
July 08 2015 - 2:00AM
UK Regulatory
TIDMKENV
RNS Number : 4695S
Kennedy Ventures PLC
08 July 2015
Kennedy Ventures PLC
8 July 2015
Kennedy Ventures plc
("Kennedy Ventures" or "the Company")
Placing to raise GBP1.4 million and Appointment of Joint
Broker
HIGHLIGHTS
-- Placing to raise GBP1.4 million before expenses through the
issue of 26,666,667 new Ordinary Shares at 5.25p per share.
-- Net proceeds of the Placing will be used:
o To bring the Tantalite Valley Mine back into production;
o To conduct due diligence on other potential tantalite
projects; and
o For investment and general working capital purposes.
-- Board believes the GBP1.4 million raised will see the
business to a position of being operational cash flow positive
Kennedy Ventures, which is focused on tantalite production in
Namibia through its 75% holding in African Tantalum (Pty) Limited
("Aftan"), is pleased to announce it has raised GBP1.4 million
before expenses through a placing of 26,666,667 new ordinary shares
of 1p each at a price of 5.25p per share (the "Placing"). The new
shares issued in the Placing will rank pari passu in all respects
with the Company's existing ordinary shares and will represent
approximately 25.89% of the Company's enlarged issued share
capital. Application has been made for the new ordinary shares to
be admitted to AIM and it is expected that admission will take
place and trading in the new ordinary shares will commence from
8.00 a.m. on 15 July 2015 ("Admission").
The net proceeds of the Placing will be used to bring the
Tantalite Valley Mine back into production, due diligence on other
potential tantalite projects, for investment and general working
capital purposes. The Board believes the GBP1.4 million raised will
see the business to a position of being operational cash flow
positive.
Demand for tantalum is driven by the electronics and technology
industries, where tantalum capacitors are used in nearly all
electronic equipment and mobile devices. Furthermore, tantalum is
used to produce super alloys that can be used to manufacture high
temperature cutting tools.
In addition, Shore Capital Stockbrokers Limited has been
appointed joint broker to the Company. Cenkos Securities remains
Nominated Adviser and Joint Broker to the Company.
Peter Hibberd, CEO of Kennedy Ventures commented:
"With the funding in place and offtake agreement with a leading
manufacturer of electronic components which we announced on 1 July
2015, we are now in a position to put the potentially highly cash
generative Tantalite Valley Mine back into production. We look
forward to updating shareholders in the coming months."
Giles Clarke, Chairman of Kennedy Ventures commented:
"Since joining the board we have had a number of institutions
showing an interest in the Company and I am very pleased this
capital raising has now allowed them to become shareholders."
Following Admission, the Company's issued share capital will
consist of 102,982,415 ordinary shares, with each ordinary share
carrying the right to one vote. The Company does not hold any
ordinary shares in treasury. This figure above may therefore 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 in their interest in, the
share capital of the Company under the FCA's Disclosure and
Transparency Rules.
ENDS
For further information, please contact:
Kennedy Ventures plc 020 3757 4983
Peter Hibberd c/o Georgia Mann
Cenkos Securities (Nominated
Adviser and Joint Broker) 0131 220 6939
Derrick Lee / Nick Tulloch
Shore Capital (Joint Broker) 020 7408 4090
Mark Percy / Toby Gibbs (corporate
finance)
Jerry Keen (corporate broking)
Peterhouse Corporate Finance
(Joint Broker)
Duncan Vasey 020 7469 0935
Camarco
Billy Clegg / Georgia Mann 020 3757 6983
Notes to editors
Tantalite concentrates form the vast majority of feedstock for
all tantalum products. As such they are critical and unreplaceable
parts of a wide range of modern electronics including computers,
tablets, mobile phones, motor components and video game
systems.
Aside from electronics, tantalum has significant usage in super
alloys, specialised steels, corrosion resistant equipment and
medicine.
Tantalum's applications are based on its unique physio -
chemical properties. The oxides and metal have extremely high
melting points, high heat conductivity and strong resistance to
corrosive environments. Combined, these factors have entrenched its
international demand and made it an important component of numerous
research projects and new technologies.
Trade pricing is following tantalum markets as per Asian Metals
and Metal Pages.
In August 2012, the US Securities and Exchange Commission
adopted a rule mandated by the Dodd-Frank Wall Street Reform and
Consumer Protection Act to require companies reporting to the SEC
to publicly disclose the origins of the tantalum they buy in order
to restrict the use of conflict minerals that originated in the
Democratic Republic of the Congo or an adjoining country. As a
result, users of tantalum are encouraged to demonstrate that their
supply chain is transparent to ensure that conflict-free tantalum
is procured.
It is intended that the tantalum produced by Aftan will be
conflict-free.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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