Termination of Yorkville equity swap and issue of equity
Alecto Minerals plc (AIM:ALO), the AIM quoted mineral exploration company focussed on West and East Africa, announces that the equity swap agreement, announced on 7 November 2013 between the Company and YA Global Master SPV Ltd has been terminated by mutual consent.
Following termination of the Equity Swap, no further payments are due between Yorkville and the Company and Yorkville remains interested in 33,875,003 ordinary shares of 0.01 pence each in the capital of the Company representing approximately 3.8 per cent. of the Company’s issued share capital.
Yorkville has been a supportive shareholder in Alecto and in respect of such Ordinary Shares, Yorkville has placed the shares onto their long book and when ready to trade will do so through Alecto’s broker, Hume Capital Securities plc.
The equity swap provided the Company with an alternative funding arrangement and provided working capital for the successful exploration at the Kossanto Gold Project in Mali where the Company increased its JORC-code compliant resource to 247,000 oz Au during the 2014 field season.
The termination of the equity swap by mutual consent comes at an appropriate time while Alecto consolidates its current gold portfolio and looks to expand through operational and corporate activity.
Issue of equity:
Additionally, the Company has agreed to issue 2,777,143 new Ordinary Shares to a consultant to the Company in lieu of fees.