TIDMMILA
RNS Number : 1980T
Mila Resources PLC
23 November 2021
Mila Resources Plc / Index: LSE / Epic: MILA / Sector: Natural
Resources
23 November 2021
Mila Resources Plc
('Mila' or the 'Company')
Readmission to Trading & First Day of Dealings
Further to the announcement of 22 November 2021, the board of
Mila is pleased to announce the readmission of its entire share
capital, being 306,331,057 ordinary shares of GBP0.01 each
("Ordinary Shares") to the Official List (by way of a Standard
Listing under Chapter 14 of the Listing Rules) and to trading on
the London Stock Exchange's Main Market for listed securities (the
"Readmission"). The Company's Readmission follows the acquisition
of an initial 30% interest in the Kathleen Valley gold project and
the exploration licence E36/876 in the Kathleen Valley (satisfied
by the issue of 83,543,197 Ordinary Shares at a price of GBP0.024
per Ordinary Share, GBP300,000 in cash consideration, the issue of
15,448,370 Ordinary Shares to Diversified Minerals Pty Ltd ("DM")
pursuant to the DM loan agreement dated 4 February 2021, and by
novating the GBP229,393 Series 3 Loan Notes from New Generation
Minerals Limited to the Company which converts to 12,744,032
Ordinary Shares on Readmission.). In addition, the Company has
granted 242,264,111 warrants, on the terms and as set out in the
Prospectus dated 29 October 2021 to, the directors, certain
advisors, investors and shareholders, all of which are due to
expire on 31 December 2026.
Dealings will commence at 8.00 a.m. today under the TIDM "MILA"
with ISIN number GB00BD4FCK53.
Overview
-- Readmission to the Official List following the acquisition,
by way of a reverse takeover, of 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 - with the intention to
acquire an additional 50% interest in the Licence and the Project
in two further tranches:
-- Maiden gold discovery 2019 at Kathleen Valley
-- 'Tip of the iceberg': initial 21,000oz gold JORC Inferred
resource defined and 145,000-280,000oz gold JORC Exploration Target
from only 2,160m RC drilling to date
-- 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
-- Abundance of mining infrastructure in vicinity that may
provide a number of commercial development routes without the
requirement to build a stand-alone processing plant
-- World class province for mining investment
-- First drill programme of 11,000m - intended to provide a pipeline of high impact news flow
-- Independent valuation of approximately GBP15,000,000 (based
on a 100% interest in the Project)
-- Raised gross proceeds of GBP3,500,000 through a Placing and
Subscription at an offer price of 2.4p per share to support a
comprehensive exploration and drilling programme at the Project,
including the proposed first drill programme of 11,000m, and for
further working capital
-- Appointment of two new directors to execute the Company's
operational and corporate objectives - Neil Hutchison as Chief
Technical Officer and Lindsay Mair as Non-Executive Director
Mila Executive Director, Mark Stephenson, said:
"Today's readmission to trading marks the beginning of a new
chapter for Mila as we look to quickly scale up activities at
Kathleen Valley and establish ourselves as a post-discovery
exploration accelerator focussed on this highly prospective, and
productive, region of Western Australia.
We are confident that the Kathleen Valley Project is a valuable
beachhead in this Tier One mining jurisdiction and with the
application of a proven exploration model to this known gold
discovery, we will prove up a larger gold resource inventory to
take forward towards production.
I would like to take this opportunity to welcome Neil and
Lindsay to the Board, and I look forward to working with them
closely as we unlock the potential of Kathleen Valley and, in the
future, look at additional value accretive opportunities through
which to build scale. I would also like to thank all of our
shareholders, including those new to our register and those with us
since our initial IPO, as we all look forward now with enormous
enthusiasm and a tailwind of gold prices at near record highs. I
look forward to reporting our progress at Kathleen Valley over the
coming weeks and months as we target a pipeline of high impact news
during Q4 2021 and throughout 2022."
Change of registered office
The Company also confirms that its registered office has changed
to:
6(th) Floor
65 Gresham Street
London
EC2V 7NQ
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").
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 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.
Kathleen Valley
Kathleen Valley lies approximately 20 kilometres south of BHP's
Mount Keith nickel mine and within the Mount Keith-Kathleen
Valley-Leinster minerals belt. Kathleen Valley is located close to
the main goldfield highway and the electrical grid, and there are
several gold processing plants in the district. It is approximately
30 kilometres north of the town of Leinster, and close to pending
and historical mines of BHP, Western Areas (nickel), Bellevue Gold
(gold/copper) and Liontown Resources (lithium/tantalum).
Gold has been mined in the area since the 1890s, with most of
the early production coming from the Kathleen Valley (4km north of
the Kathleen Valley Project area) and Sir Samuel (Bellevue) (5km
south
of the Kathleen Valley Project area) mining centres.
A review of historic exploration work completed within the
project area has indicated that the majority of exploration has
been for gold and nickel. The most comprehensive work was completed
by Barrick Gold and joint venture partners between 1992 and 2003.
This exploration work largely focused on gold and included rock
chip sampling, widespread auger soil sampling and RC drilling
testing of some gold targets.
TPE has so far completed 12 RC drillholes. Drilling commenced in
April 2019 with an initial two holes
completed which included a discovery hole of 4g/t of gold. TPE
recommenced drilling in September 2020 with a further 10 holes
drilled. A total of 2,160m was drilled. The first two holes were
drilled by Jarrahfire and the remaining 10 by Ausdrill Ltd. Rig
samples were collected on one-metre intervals after going through a
rig mounted cyclone and cone splitter.
Areas where no mineralisation was identified were sampled with
four-metre composites. Areas of interest were sampled on one-metre
intervals. Four-metre composites were re-sampled, if required, by
spear sampling the appropriate one-metre sample.
Strategy and Work Programme
The strategy of the Company is to deploy existing cash resources
and the net proceeds of the placing and subscription towards
exploration work at the Kathleen Valley Project. The Company
intends to commence with an exploration drilling programme
immediately following Readmission on the current target and
proposes to drill new targets in the Northern portion of the
Project (further details are outlined in the CPR in Part V of the
Prospectus which can be found on the Company's website at
www.milaresources.com).
The Company intends to seek to establish an updated JORC Mineral
Resource following the drilling programme assuming further gold has
been discovered. The overall strategy of the Company is to identify
mineral resources sufficient to develop the Project into
production. The Board believes that there are a number of
development routes given the abundance of mining infrastructure
locally, therefore, it does not envisage the requirement to build
its own plant to process the mineral ore but rather proposes to
enter into arrangements including joint ventures, toll treatment or
the disposal of the Project to a mining company in the region.
The Company's initial target in the Kathleen Valley tenement
will be to drill test the Inferred Mineral Resource Estimate and
JORC Exploration Target. To further define the potential of the
Inferred Mineral Resource Estimate and JORC Exploration Target,
with the aim of attempting to progress the Inferred Mineral
Resource in size and confidence level in the Mineral Resource
Estimate, the Board and CSA Global (the consultant that completed
the Competent Persons Report on Kathleen Valley) recommend the
following:
-- To drill approximately 25 to 35 suitably spaced new holes
with reserves circulation drilling and diamond tails where
appropriate, with 8 to 10 of the new holes drilled to a depth of
400 meters. The new holes should both:
o infill within the existing Inferred Mineral Resource Estimate
and JORC Exploration Target to increase confidence levels in the
continuity of mineralising; and
o seek to extend the mineralising outside the current Inferred
Mineral Resource Estimate and JORC Exploration Target area.
-- To complete DHEM on selected holes to assist in guiding the deeper and extensional drilling.
-- To conduct specific gravity measurements and metallurgical
test work on the diamond drilling core to educate any potential
future Mineral Resource Estimate.
Furthermore, the 2019 regolith shallow auger sampling campaign
identified two additional structural gold trends in the north west
and north of the Exploration Target. CSA Global recommends that
these should also be explored and could cost efficiently be done in
conjunction with the work above.
CSA Global recommends NGM complete the following:
-- Drill approximately 6 to 10 suitably spaced new holes with
reverse circulation drilling to a depth of 200 metres.
-- DHEM be completed on selected holes to identify below-surface anomalies.
Second-stage investigation of the Project will focus on more
detailed geological and Geochemical studies of targets for both
mineralisation styles defined during the first stage, and on
drilling (both percussion and diamond) to more fully define the
potential for viable mineralisation.
The mineral property held by the Company is considered to be an
"exploration project" that is intrinsically speculative in nature.
The Project is at the "advanced exploration" stage. CSA Global
considers, however, the Project to be of sound technical merit and
to be sufficiently prospective, subject to varying degrees of
exploration risk, and to warrant further exploration and assessment
of its economic potential, consistent with the proposed
programme.
The Company has prepared staged exploration and evaluation
programmes, specific to the potential of the Project, which are
consistent with the budget allocations, and warranted by the
exploration potential of the Project. CSA Global considers that the
relevant areas have sufficient technical merit to justify the
proposed programmes and associated expenditure.
Board
Upon Readmission, the Board will comprise of four highly
experienced directors:
Mark Stephenson (61 years old) (Executive Chairman)
Mark has over 30 years of capital markets experience working for
Panmure Gordon, WestLB, Blue Oar Securities and NCL Investments
(now a Smith & Williamson group company dedicated to raising
both equity and debt capital for small and mid-cap companies listed
on the London Stock Exchange). In recent years, Mark has focused on
the natural resources sector and in 2015 he formed the Company, to
capitalise on opportunities in the sector through his network in
the capital markets and mining sector. Mark has developed
relationships with a plethora of investors dedicated to natural
resources including hedge funds, dedicated mining funds, high net
worth investors and private client brokers.
Lee Daniels (51 years old) (Chief Financial Officer)
Lee is a highly experienced finance executive with over 20
years' experience developed from senior roles with HSBC (Global
Markets), Credit Suisse, ABN AMRO (Wholesale Markets) and LTSB
(Group) (Distressed Debt Division). He has an established track
record across several finance functions including finance and
accounting, change management, project evaluation and modelling.
Most recently, he has been consulting with an AIM listed oil &
gas company with regard to their finance function. Lee is a
qualified accountant (Australian Certified Practicing
Accountant).
Neil Hutchison (51 years old) (Chief Technical Officer)
Neil has more than 25 years' experience in the mining industry,
working throughout Australia and overseas. He has a track record of
mineral discovery, resource and reserve definition, project
development, evaluations and acquisitions. Neil was Exploration
Superintendent at the Cosmos Nickel Project with Jubilee Mines and
was part of the team that discovered the Alec Mairs, Prospero and
Tapinos deposits which led to the AUD$3.1 billion takeover of
Jubilee Mines by Xstrata in 2007. Neil graduated with First Class
Honours in Geology from the University of Southern Queensland and
is a member of the Australian Institute of Geoscientists (AIG). He
is also a non-executive director of ASX listed Kairos Minerals, a
company with a gold project in Western Australia, and Estrella
Resources Limited.
Lindsay Mair (63 years old) (Non-Executive Director)
Lindsay is an experienced investment banker with a 30-year
career in the City. He qualified as a chartered accountant with
Touche Ross (now Deloitte) in 1987. He then worked in the corporate
finance departments of various City firms, most recently at SP
Angel (which has a broad range of clients in the mining sector).
From 2017 until 2019, he was a non-executive director of Kin Group
plc, which acquired Bidstack Limited in a reverse takeover, where
he assisted with the takeover and a number of fundraisings. He is
the Chief Financial Officer of Low 6 Limited, which operates a B2B
gamification platform for sports franchises.
**ENDS**
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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