Premier Gold Resources PLC Premier Gold raises £260,000 to support field work (4509V)
December 13 2013 - 2:00AM
UK Regulatory
TIDMPGR TIDMTTM
RNS Number : 4509V
Premier Gold Resources PLC
13 December 2013
Embargoed: 0700hrs, 13 December 2013
Premier Gold Resources plc
("Premier Gold" or the "Company")
Premier Gold raises GBP260,000 to support 2014 field work
Premier Gold (AIM: PGR), the Central Asia-focused gold
exploration and development company, is pleased to announce that it
has raised gross funds of GBP260,000 by way of a subscription (the
"Subscription") with an existing institutional shareholder for a
total of 200,000,000 new ordinary shares of 0.1 pence each
("Ordinary Shares") at a price of 0.13 pence per share (the
"Subscription Shares").
Use of Proceeds
It is Premier Gold's intention that field work will recommence
at the Cholokkaindy prospect as early as weather permits in 2014
(spring) and subject to the re-establishment of an uninhibited
working environment (pursuant to the Company's announcement of 4
October 2013). Premier Gold believes that the additional funds
provided through the Subscription, together with existing cash
reserves and funds already due to the Company, will allow it to
undertake sufficient drilling on certain prospects to enable the
Company to greatly advance an initial independent assessment of the
gold resource at Cholokkaindy.
The Company's geological team, led by Garth Earls, will continue
throughout the winter to refine geological data obtained from
surface work to date in order to prioritise drilling targets for
the forthcoming field season. Further details of the drilling
targets and wider exploration objectives for the 2014 field season
(expected to include additional surface work) will be provided in
advance of the commencement of field operations.
Details of the Subscription
Lanstead Capital L.P. ("Lanstead"), an institutional investor
and existing shareholder of the Company, has subscribed for the
Subscription Shares for an aggregate consideration of GBP260,000.
In addition, the Company has entered into an Equity Swap Agreement
with Lanstead which allows the Company to retain much of the
economic interest in the Subscription Shares.
The Equity Swap Agreement provides that the Company's economic
interest will be determined and payable in twenty-four monthly
settlement tranches as measured against a benchmark price of
0.17333p per share ("the Benchmark Price"). If the measured share
price exceeds the Benchmark Price, for that month, the Company will
receive more than 100 per cent of the monthly settlement due on a
pro rata basis. There is no upper limit placed on the additional
proceeds receivable by the Company as part of the monthly
settlements. Should the measured share price be below the Benchmark
Price, the Company will receive less than 100 per cent of the
expected monthly settlement on a pro rata basis. In no case would a
decline in the Company's share price result in any increase in the
number of ordinary shares received by Lanstead or any other
advantage accruing to Lanstead.
The Company has agreed to make a value payment to Lanstead of
20,000,000 Ordinary Shares (the "Value Shares") in consideration
for the Equity Swap Agreement. The Equity Swap Agreement allows the
Company to secure much of the potential upside arising from
near-term news flow.
The mid-market price of the Company's existing ordinary shares
at the close of business on 12 December 2013 (being the latest
business day prior to the publication of this announcement) was
0.15 pence. The Subscription is conditional upon the admission of
the Subscription Shares and Value Shares (together the "New
Ordinary Shares") to trading on AIM, which is expected to become
effective today. The New Ordinary Shares will rank pari passu with
the existing ordinary shares of the Company. Following the
admission of the New Ordinary Shares the enlarged issued share
capital of the Company will be 1,346,435,975 ordinary shares.
Shareholders may use this number when calculating their percentage
holding in the Company.
Richard Nolan, Chief Executive, commented:
"Notwithstanding the regional interference experienced by
Premier Gold recently in the Kyrgyz Republic, we are delighted that
the Company's largest shareholder continues to recognise the
potential of the Cholokkaindy asset which demonstrates key
geological similarities to other large gold deposits on the
northern Tien Shan belt. We look forward to making further progress
towards quantifying Cholokkaindy's potential."
Contacts:
Premier Gold Resources plc
Richard Nolan, CEO 020 7953 4028
Sanlam Securities UK Limited (Nominated
Adviser and Broker)
Lindsay Mair / Richard Goldsmith
/ Catherine Miles 020 7628 2200
Vigo Communications
Ben Simons / Chris McMahon 020 7016 9574
About Premier Gold Resources plc
Premier Gold Resources plc (AIM:PGR) is a gold exploration and
development company listed on the London Stock Exchange. Premier
Gold is focused on gold opportunities in Central Asia, in
particular the Kyrgyz Republic, where the Company's current
project, Cholokkaindy, is located.
Cholokkaindy is a 32 square kilometre licence area located in
the northern Tien Shan, 20 kilometres south of Kara Balta and 80
kilometres southwest of Bishkek. Geological results from Premier
Gold's work programme to date support the view that Cholokkaindy is
part of a large mineralising system, displaying several key
indicators associated with other large gold deposits in the
northern Tien Shan metallogenic belt.
For further information or sign up to our 'Alert Service' please
visit:
www.premiergoldresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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