TIDMSML
RNS Number : 5658N
Strategic Minerals PLC
27 October 2016
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR")
27 October 2016
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Oversubscribed Placing and Appointment of Joint Broker
Strategic Minerals Plc (AIM: SML; USOTC: SMCDY), the minerals
production and development company, is pleased to announce today
that it has raised GBP600,000, before expenses, through an
oversubscribed placing of 150,000,000 new Ordinary Shares of 0.1p
each in the Company ("Placing Shares") at an issue price of 0.4p
per share (the "Placing").
Highlights:
-- Placing significantly oversubscribed, evidencing strong investor demand for the stock
-- Placing upsized due to interest at multiples of original funding requirements
-- Minimum dilution to existing shareholders
-- Placing completes perceived funding requirements until at least Q4 2017
-- Placing completed at a 33% premium to June's Placing price
-- Appointment of SP Angel as Joint Broker - providing wider
access to resource focused investors
The Placing has been undertaken within the Company's existing
share authorities and is conditional only on admission of the
Placing Shares to trading on AIM ("Admission"). Application has
been made for Admission, which is expected to occur on or around 2
November 2016.
SP Angel arranged the Placing, with assistance from Optiva
Securities, to new and existing investors. This marks the
appointment of SP Angel as Joint Broker to the Company with
immediate effect, which will in turn widen investor reach amongst
the resources community.
As a result of strong investor demand, the issue was
significantly oversubscribed and the Directors took the view that,
given the size of the oversubscription, they should upscale the
issue so as to provide investors with a meaningful allocation,
while not overly diluting existing shareholders. Applications were
scaled back on a pro rata basis. Due to the Directors being in a
close period, they were unable to participate in the Placing.
The Placing Shares will represent approximately 12 per cent. of
the Company's issued share capital as enlarged by the issue of the
Placing Shares.
In line with limiting the number of shares issued, the Directors
currently envisage that there should not be a need for further
equity funding until at least the latter part of 2017, when it is
envisaged that results associated with the Redmoor drilling
programme will be released.
The net proceeds of the Placing, which are expected to total
approximately GBP565,000, will be used by the Company towards:
i) the exercise of the option to acquire an additional interest
in NAE Resources (UK) Limited ("Redmoor"), further details of which
were announced on 26 May 2016 and 8 September 2016; and
ii) the drilling being undertaken by Central Australian Rare
Earths Pty Ltd ("CARE") at the Hanns Camp project and a plan to be
finalised for a drilling programme at the Mount Weld tenements.
Managing Director of Strategic Minerals, Mr John Peters,
commented:
"We are very encouraged with the market's response to the
Placing - a strategic decision to raise funds to complete the
Company's 50% interest in the Redmoor Tin/Tungsten project in
Cornwall, in addition to undertaking further drilling through the
Company's investment in CARE, while minimising shareholder
dilution.
"While additional funds were on offer, the Board considered
that, at these share price levels, and with strong operating cash
flows from Cobre and US$400,000 from the rail claim settlement due
in January 2017, the Company would contain the issue to only
150,000,000 shares.
"It was particularly pleasing to note the positive response from
investors as the Company reaffirmed its position as an acquisitive
cash-generating junior miner. Net proceeds from the Placing are to
be invested in improving underlying assets through drill programmes
- while cash flows at Cobre continue to more than support the
Company's working capital requirements.
"The Placing also sees the appointment of SP Angel as our Joint
Broker and the continued support of Optiva Securities. This
appointment is reflective of the Company's movement into
development with an underlying operating base."
An updated presentation is now available on the Company's
website under the Investors section or at
http://www.strategicminerals.net/investors/presentations.html
Total voting rights
Following the issue of the Placing Shares and with effect from
Admission, the Company's issued share capital will consist of
1,218,492,227 Ordinary Shares, with one voting right per share.
Strategic Minerals does not hold any ordinary shares in treasury.
Therefore, the total number of Ordinary Shares and voting rights in
the Company will be 1,218,492,227. Shareholders may use this figure
as the denominator for the calculations 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.
Insofar as the Company is aware, following the issue of the
Placing Shares and with effect from Admission, its significant
shareholders (as defined in the AIM Rules) will be as follows:
Name No. of Ordinary % of Issued Share
Shares Capital
Mr & Mrs Chisholm
held by Lenark Pty
Ltd and Kifaco Pty
Ltd 44,834,954 3.68
Peter V Wale (Director) 43,864,000 3.60
For further information, please contact:
Strategic Minerals plc
John Peters
Managing Director
www.strategicminerals.net +61 (0) 414 727 965
Allenby Capital Limited
Nominated Adviser and Joint
Broker
John Depasquale
Jeremy Porter
James Reeve +44 (0)20 3328 5656
SP Angel
Joint Broker
Ewan Leggat
Richard Parlons +44 (0)20 3470 0500
Yellow Jersey PR
Financial PR
Dominic Barretto
Alistair de Kare-Silver +44 (0) 7768 537 739
Notes to Editors
Strategic Minerals Plc is an AIM-quoted, diversified mineral
development and production company with projects in the United
States of America and Australia. The Company is focused on
acquiring and developing cash generative, high quality projects
which meet local market demand for commodities and utilising this
cash flow to undertake value added exploration.
In September 2011, Strategic Minerals purchased its first cash
generating asset; the Cobre magnetite tailings dam project in New
Mexico, USA which it brought into production in 2012 and which
continues to provide a revenue stream for the Company. The
portfolio was expanded in January 2016 with the acquisition of
shares in Central Australian Rare Earths Pty Ltd, which holds
tenements in Western Australia and the Northern Territory that are
prospective for nickel sulphides and rare earths. In May 2016, an
additional exploration asset was acquired when the company entered
into arrangements to take up to 50% of the Redmoor Tin/Tungsten
project in Cornwall, UK.
This information is provided by RNS
The company news service from the London Stock Exchange
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October 27, 2016 02:00 ET (06:00 GMT)