Sula Iron & Gold PLC Subscription to raise £0.4 million (2473I)

TIDMSULA

RNS Number : 2473I

Sula Iron & Gold PLC

15 June 2017

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.

This announcement does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any investment decision in respect of Sula Iron & Gold Plc or other evaluation of any securities of Sula Iron & Gold Plc or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities.

15 June 2017

SULA IRON & GOLD PLC

("Sula" or the "Company")

Subscription to raise GBP0.4 million

Sula (AIM: SULA), the gold exploration company focused on Sierra Leone, is pleased to announce that it has conditionally raised GBP0.4 million from a subscription for 160,000,000 new ordinary shares of 0.1p each in the Company ("Ordinary Shares") (the "Subscription Shares") at an issue price of 0.25p per share (the "Subscription Price") through a direct subscription with a targeted small number of new investors, (together the "Subscription").

The Subscription Price represents a discount of approximately 6.7 per cent. to the Company's closing middle market share price of 0.268p on 14 June 2017.

The Subscription has been undertaken to a targeted small number of new investors who want to support the growth of the Company as it continues to de-risk and develop the Ferensola Project.

In addition to the Subscription Shares, 160,000,000 warrants will also be granted to the subscribers on a one-for-one basis providing the subscribers with a right to subscribe for one further new Ordinary Share at a price of 0.35p per Ordinary Share during an exercise period commencing on the date of Admission of the Subscription Shares to trading on the AIM Market of the London Stock Exchange ("AIM") and ending thirty-six months thereafter (the "Warrants").

Use of Proceeds

The net proceeds of the Placing will primarily be used:

-- to complete the current diamond drilling programme at Sula's Ferensola gold project both at Sanama Hill, which already hosts a JORC Compliant Exploration Target of 5-7Mt at a grade of between 4.0-8.0g/t for between 0.8-1.5Moz of contained gold and also at Sula's recently discovered new gold-bearing area the Southern Target where three boreholes have hit gold, including a recent intersection of 5.2g/t over 1.22m

-- At Sanama Hill this ongoing drill programme will aim to infill and extend the areas of known high grade mineralisation and to improve the confidence in the geological interpretation and support a more accurate determination of the contained gold.

   --      for other potential regional exploration programmes; and 
   --      for general working capital purposes 

Details of the Subscription

The Issue of the Subscription Shares is conditional upon receipt of the GBP0.4 million Subscription proceeds by the Company ("Proceeds"), which is expected to have occurred on or before the close of business on 19 June 2017, and upon their admission to trading on AIM ("Admission"). The Company will make application for Admission of the New Ordinary Shares in due course and will update the market once the Proceeds have been received. Once issued, the Subscription Shares will represent approximately 6.6 per cent. of the Company's share capital as enlarged by the Subscription Shares (the "Enlarged Share Capital").

The Subscription Shares will rank pari passu in all respects with the Company's existing Ordinary Shares and will be issued fully paid.

Following completion of the Subscription, the Company's Enlarged Share Capital will comprise 2,427,120,672 Ordinary Shares. This figure may be used by Shareholders as the denominator for the calculations by which they may determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Roger Murphy, Chief Executive Officer of Sula, commented:

"I'm delighted with this support from a series of professional and high net worth investors. It is also pleasing that this direct subscription was oversubscribed and as such there were no fees payable by the Company.

We look forward to updating the market with assay results from the ongoing drill campaign in the coming weeks."

For further information, please contact:

 
 Sula Iron & Gold plc 
 Roger Murphy (CEO)                 [phone] 
 WH Ireland Limited (Nominated 
  Adviser and Broker) 
  Paul Shackleton / James 
  Bavister                            [phone] 
 VSA Capital Limited (Broker) 
 Andrew Raca                        [phone] 
 Ongeza Mining (Financial 
  and Technical Adviser) 
 Iain Macpherson / Ilja Graulich    [phone] 
 

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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June 15, 2017 11:22 ET (15:22 GMT)