Share Name Share Symbol Market Type Share ISIN Share Description
VI Mining Plc NEX:VIM NEX Ordinary Share JE00BDFKM100
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 20.00 15.00 25.00 20.00 20.00 20.00 0.00 07:37:29
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - -

VI Mining PLC VI Mining expands regional footprint

08/10/2019 7:00am

UK Regulatory (RNS & others)


VI Mining (NEX:VIM)
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RNS Number : 0546P

VI Mining PLC

08 October 2019

VI Mining Plc

(the "Company" or "VI Mining"; NEX: VIM)

VI Mining expands regional footprint

Highlights

-- VI Mining has acquired rights to the near surface oxide gold at the Aripuanã Project in Mato Grosso, Brazil.

-- Acquisition complements the existing operations in Peru and strengthen the regional footprint in South America.

-- Issue of deferred consideration shares for the acquisition of Cushuro (completed on 28 January 2019) has been accelerated.

VI Mining is pleased to announce that it has entered into an agreement (the "Agreement") dated 7 October 2019 with Kar Gold Inc. ("Kar Gold") in relation to the assignment by Mineração Rio Aripuanã Ltda. ("MRA"), a subsidiary of Karmin Exploration Inc. ("Karmin"), to VI Mining of all of the rights and interests held by MRA in respect of the oxide gold located at the Aripuanã Project in Mato Grosso, Brazil (the "Gold Rights").

As announced by Karmin on 26 August 2019, Karmin and Nexa Resources S.A. ("Nexa") entered into an arrangement agreement whereby Nexa will acquire Karmin's indirectly-held 30% interest in the Aripuanã Project, through the acquisition of Karmin (the "Arrangement"). Kar Gold is a new private company formed pursuant to the Arrangement and, following the closing of the Arrangement, will be a stand-alone entity with no involvement from Nexa in its management or operations. Nexa, through its Brazilian and Peruvian subsidiary, has agreed to the assignment of the Gold Rights to VI Mining as part of the Arrangement.

The Company's acquisition of the Gold Rights complements its existing operations in Peru and strengthens its regional footprint in South America.

Aripuanã Project

The Aripuanã Project encompasses gold mineralization associated with the near surface oxidized portions of the massive sulphide deposits over the 658 km(2) of the Aripuanã Project. The directors of the Company believe that the Aripuanã Project has significant exploration potential for near surface gold deposits.

The Aripuanã Project is located 25 km from Aripuanã city and 1,000 km by road from Cuiabá in Mato Grosso state in north-west Brazil.

Agreement

Under the terms of the Agreement:

1. VI Mining has acquired (the "Assignment") the Gold Rights from MRA pursuant to the terms of an assignment agreement (the "Gold Rights Assignment Agreement") for consideration consisting of: (i) 2,290,571 ordinary shares in VI Mining ("Ordinary Shares") (having a deemed value of US$975,000); and (ii) an additional 6,871,712 Ordinary Shares (having a deemed value of US$2,925,000), unless VI Mining exercises its Exit Rights (as defined in point 3 below) within 72 months from the date of the Gold Rights Assignment Agreement (the "Follow-on Consideration").

2. While VI Mining has no contractual financial obligation or commitment to undertake any exploratory work at this stage, it intends to enter an arrangement with Nexa in respect of access to, and exploration and exploitation of, the Gold Rights. Any such related projects require, amongst others, the prior approval of Nexa.

3. In the event that VI Mining does not: (i) commence exploration work on the Aripuanã Project within 36 months from the date of the Gold Rights Assignment Agreement; or (ii) reasonably demonstrate that a commercially viable operation for the exploitation of surface oxide gold would be possible on the Aripuanã Project within 72 months from the date of the Gold Rights Assignment Agreement, then it may, at its sole option, relinquish its interest in the Gold Rights, at which point the Follow-on Consideration will no longer be owing to MRA (the "Exit Right').

   4.        Additional Share Issuance: 

a. VI Mining has agreed that Karmin may transfer to Kar Gold the 5,753,138 Ordinary Shares issued to it upon the acquisition of Karmin Peru SAC (the "Cushuro Acquisition Agreement"), as announced on 27 July 2018 and completed on 28 January 2019;

b. VI Mining has agreed to accelerate the issue of the "look back" deferred consideration shares owing to Karmin under the Cushuro Acquisition Agreement as announced on 28 January 2019, which has resulted in 12,571,429 Ordinary Shares being issued to Kar Gold in full and final settlement of its obligation (the "Additional Share Issue") under such agreement; and

c. The Additional Share Issue is subject to the same lock-up provisions as the Ordinary Shares issued under the Cushuro Acquisition Agreement, which such provisions expire on 2 March 2020.

Application has been made for the Ordinary Shares to be admitted to trading on NEX ("Admission"). Admission is expected to occur at 8.00 a.m. on or around 11 October 2019. Following Admission, the Company's issued share capital comprises 127,565,869 Ordinary Shares, with each share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. The above figure of 127,565,869 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or of a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

Kar Gold holds 20,615,138 Ordinary Shares, representing 16.2% of the enlarged share capital of the Company.

Contact:

 
 VI Mining Plc 
 Allan Rowley, CEO             +511 475 2363 
 
 VSA Capital Limited 
 Andrew Raca / Pascal Wiese    020 3005 5000 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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October 08, 2019 02:00 ET (06:00 GMT)

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