Frontier Resources International Issue of Equity (9677D)

TIDMFRI

RNS Number : 9677D

Frontier Resources International

12 July 2016

Frontier Resources International Plc

("Frontier" or the "Company")

12 July 2016

Issue of Equity

The Board of Frontier (AIM Ticker: FRI) announces that the Company has today allotted and issued 40,143,351 new Ordinary Shares.

This comprises the following:

1. Exercise of Warrants

As at close of business on 7 July 2016, valid exercise notices were received from holders of 40,139,630 warrants which were issued in February 2016 ("Warrants"). The exercise price is 0.03p per ordinary share of 0.01p ("Ordinary Share") and the gross proceeds of exercise amounted in aggregate to GBP12,041.89, which provides additional working capital for the Company.

Included in the figures above are the following exercises of warrants by Directors which are shown in the table at the bottom of this announcement.

The next, and final, exercise date for the outstanding warrants is 7 October 2016. If the proposed share consolidation (in which one New Ordinary Share of 2.5p will replace every 250 Ordinary Shares) ("Share Consolidation") is approved at the General Meeting scheduled for 25 July 2016, holders of remaining Warrants will have to divide the number of their Warrants by 250 to calculate the number of New Ordinary Shares the subject of the Warrants, and the exercise price of such Warrants will be 7.5p per New Ordinary Share.

2. Issue of new Ordinary Shares to purchase the outstanding deferred shares

As also announced on 7 July, the Company intends to tidy up its capital structure by acquiring, as it is entitled, all the outstanding deferred shares (which are effectively worthless) in the Company for consideration of GBP1. Once these deferred shares are cancelled, the Ordinary Shares will constitute the only class of share capital in the Company.

In order to achieve this, the Company has therefore allotted 3,721 Ordinary Shares at an issue price of 0.03p per Ordinary Share to Barbara Spurrier to create the share premium necessary.

The new Ordinary Shares will, on issue, rank pari passu with the existing Ordinary Shares in issue, other than in respect of the following : they will not be eligible for participation in the Open Offer announced on 7 July. Application will be made for the new Ordinary Shares to be admitted to trading on AIM. Admission and trading in the new Ordinary Shares on AIM is expected to commence on or around 18 July 2016.

 
 Director        No of        No of shares       No of Ordinary   No of Ordinary 
                  warrants     issued to          Shares held      Shares held 
                  exercised    facilitate         post exercise    as a % of enlarged 
                               the purchase                        issued ordinary 
                               of the Deferred                     share capital 
                               Shares 
--------------  -----------  -----------------  ---------------  -------------------- 
 Neil Herbert    24,674,571          -            382,682,475            7.36 
--------------  -----------  -----------------  ---------------  -------------------- 
 Barbara 
  Spurrier*       5,747,618        3,721           11,514,457            0.22 
--------------  -----------  -----------------  ---------------  -------------------- 
 

* included in the figures above are the exercise of 4,285,714 warrants by CFPro Limited, a company with which Barbara Spurrier is connected. The resultant shareholding of CFPro Limited is 8,571,428 shares.

Total voting rights

Following the issue of the new Ordinary Shares, the Company's issued share capital consists of 5,200,000,000 Ordinary Shares, with voting rights. This figure may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Enquiries:

Frontier Resources International Plc

Adam Reynolds, Chairman

Tel: [phone]

SPARK Advisory Partners Limited (Nomad)

Neil Baldwin/Mark Brady

Tel: [phone]

Beaufort Securities Limited (Broker)

Jon Belliss

Tel: [phone]

Yellow Jersey PR Limited (Financial PR)

Felicity Winkles/ Joe Burgess/ Josh Cole

Tel: [phone]

A copy of this announcement is available from the Company's website www.friplc.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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July 12, 2016 08:45 ET (12:45 GMT)