TIDMMILA
RNS Number : 7818Q
Mila Resources PLC
29 October 2021
Mila Resources Plc / Index: LSE / Epic: MILA / Sector: Natural
Resources
29 October 2021
Mila Resources Plc
('Mila' or the 'Company')
Approval and Publication of Prospectus
Notice of General Meeting
Mila Resources Plc is pleased to announce that its prospectus
has been approved by the Financial Conduct Authority (the 'FCA')
and published today by the Company (the 'Prospectus'). The
Prospectus relates to the readmission of the Company's ordinary
shares to the standard listing segment of the Official List of the
FCA and to trading on the Main Market for listed securities of the
London Stock Exchange plc ('Readmission'), expected at 8.00 a.m. on
23 November 2021.
Overview
-- Conditionally raised gross proceeds of GBP3,500,000 through a
Placing and Subscription at an offer price of 2.4p per share (the
'Offer Price')
-- Conditional agreement to acquire an initial 30% interest in
exploration licence E36/876 in the Kathleen Valley (the 'Licence')
and the Kathleen Valley Gold Project (the 'Project') (collectively
the 'Acquisition') in Western Australia from Trans Pacific Energy
Group Pty Ltd ('TPE'), a wholly owned subsidiary of New Generation
Minerals Limited ('NGM') - with the intention to acquire an
additional 50% interest in the Licence and the Project in two
further tranches
-- The Project is located in the Wiluna-Jundee belt and adjacent to Bellevue Gold
-- The region hosts some of the largest gold projects in
Australia and offers good mining infrastructure and development
options - with no requirement to build plant necessarily
-- Funds raised will support a comprehensive exploration and
drilling programme at the Project, including the proposed first
drill programme of 11,000m, and for further working capital
-- Based on the Offer Price, the market capitalisation of the
Company will be approximately GBP7.3 million at the commencement of
dealings on the main market of the London Stock Exchange,
anticipated 23 November 2021 under the ticker MILA
Mila Executive Director, Mark Stephenson, said:
"The Acquisition provides investors with the opportunity for
exposure to one of the most prolific gold regions globally, in a
stable and pro-mining jurisdiction, benefitting from existing
regional infrastructure and surrounded by Tier One mining companies
and successful exploration companies.
"This transaction certainly meets all of our investment criteria
and I believe it sets us on a path to becoming a post-discovery
exploration accelerator delivering high value accretive development
opportunities to our investors.
"Kathleen Valley is ideally situated from both a geological and
infrastructure standpoint, being located in an area which hosts
some of the largest gold projects in Australia. Kathleen Valley
also benefits from an initial Exploration Target 145,000-280,000oz
target, which we believe is just the tip of the iceberg given only
limited RC drilling comprising 2,160m has been carried out on the
project to date. The 11,000m drill campaign that we have planned
and budgeted is expected to provide a much greater sense of the
scope and scale of this project, as we apply a proven exploration
model to this established discovery.
"We look forward to the coming weeks and our readmission to
trading, as we drive both our strategy and exploration activities
forward to deliver a pipeline of high impact news flow over the
coming months."
The Prospectus can be found on the Company's website at:
www.milaresources.com .
General Meeting
Readmission is conditional upon shareholder approval at a
General Meeting of the Company to approve, inter alia, the Placing
and Subscription and the Acquisition of the Project (the 'GM').
Notice is hereby given that the GM will be held at 11.00 a.m. on 22
November 2021 at 1 King William Street, London, EC4N 7AF.
Expected Timetable
Publication and posting of Prospectus and 29 October 2021
Forms of Proxy
Latest time and date for receipt of Forms 11:00 a.m. on 18 November
of Proxy 2021
--------------------------
General Meeting of the Company 11:00 a.m. on 22 November
2021
--------------------------
Cancellation of trading of Existing Ordinary 8:00 a.m. on 23 November
Shares 2021
--------------------------
Readmission and commencement of dealings 8:00 a.m. on 23 November
in Ordinary Shares 2021
--------------------------
CREST members' accounts credited in respect 23 November 2021
of New Ordinary Shares
--------------------------
Share certificates dispatched in respect Within 10 business
of New Ordinary Shares where applicable days from Readmission
--------------------------
Further Information
The Company was established to undertake an acquisition of a
company or project in the natural resources sector. The Company was
admitted to listing on the Official List of the FCA by way of a
Standard Listing and to trading on the London Stock Exchange plc's
Main Market on 7 October 2016 ("Initial IPO").
Since the Initial IPO, the Company has reviewed a number of
acquisition targets in the natural resources sector. On 16 November
2020, the Company announced it had signed a non-binding Heads of
Terms with New Generation Minerals Limited ("NGM"), a mining
exploration company with mining exploration projects in Western
Australia and Argentina.
The Company has subsequently entered into a conditional
agreement (the "Acquisition Agreement") to acquire an initial 30%
interest in the Kathleen Valley gold project ("Kathleen Valley
Project" or the "Project") and the exploration licence E36/876 in
the Kathleen Valley ("Kathleen Valley Licence") from Trans Pacific
Energy Group Pty Ltd ("TPE"), a wholly owned subsidiary of NGM, for
consideration of GBP2,812,500 by way of issuing 83,543,197 new
Ordinary Shares at a price of GBP0.024 per Ordinary Share in the
Company (the "Initial Consideration Shares") to TPE, GBP300,000 in
cash consideration, by allotting and issuing 15,448,370 new
Ordinary Shares to Diversified Minerals Pty Ltd ("DM") pursuant to
the DM Loan Agreement, and by novating the GBP229,393 Series 3 Loan
Notes from NGM to the Company which will convert to 12,744,032 new
Ordinary Shares on Readmission. On Readmission, the Company will
list the Initial Consideration Shares and the Ordinary Shares
issued pursuant to the Series 3 Loan Notes and the DM Loan
Agreement.
Post-Readmission, and conditional on the successful completion
of 11,000 metres drilling at Kathleen Valley, the Company will have
a right to purchase a further 25% interest in the Kathleen Valley
Project and the Kathleen Valley Licence from TPE for consideration
of GBP2,343,750 by way of issuing 97,656,750 new Ordinary Shares at
a price of GBP0.024 per Ordinary Share in the Company (the "Second
Consideration Shares") to TPE. The Company will then seek to list
the Second Consideration Shares.
Finally, and conditional on a second spend by the Company of not
less than GBP1,500,000, the Company will have a right to acquire
the remaining 25% interest in the Kathleen Valley Project and
Kathleen Valley Licence from TPE for consideration of GBP2,343,750
by way of issuing 97,656,750 new Ordinary Shares in the Company at
a price of GBP0.024 per Ordinary Share (the "Third Consideration
Shares") to TPE. On completion of the allotment, the Company will
also seek to list the Third Consideration Shares. There is no
guarantee that the Company will issue the Second Consideration
Shares and/or the Third Consideration Shares, as they are dependent
on the aforementioned conditions being met in relation to the
Project and pursuant to the Acquisition Agreement.
The Company will seek readmission to the Standard List of the
London Stock Exchange and has conditionally raised GBP3,500,000
pursuant to a Placing and Subscription to undertake a comprehensive
exploration and drilling programme at the Project and for further
working capital purposes. The Company, NGM, TPE, and Diversified
Minerals Pty Ltd entered into a convertible loan of A$500,000 in
February 2021 to fund a drilling programme that is already
underway.
Following Readmission, the Company will undertake exploration
and drilling of the current and new targets that have been
identified and prepare an updated JORC compliant mineral resource.
The Project is located in the Wiluna Jundee goldbelt that hosts
some of Australia's largest gold mines.
The local region has an abundance of mining infrastructure that
may provide a number of development routes for the Project without
the requirement to build a stand-alone processing plant.
Therefore, subject to exploration success, the Company may be
able to fast track the Project into production without any
requirement to fund and build a processing plant given there are a
number in the region within trucking distances.
**S**
For more information visit www.milaresources.com or contact:
Mark Stephenson info@milaresources.com
Mila Resources Plc
Jonathan Evans
Brandon Hill Capital Limited +44 (0) 20 3463 5000
Susie Geliher
St Brides Partners Limited +44 (0) 20 7236 1177
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