Richland Resources Ltd Directors' Dealings and Issue of Equity (7868T)

TIDMRLD

RNS Number : 7868T

Richland Resources Ltd

06 July 2018

6 July 2018

Richland Resources Ltd

("Richland" or the "Company")

Fee Conversions, Directors' Dealings and Issue of Equity

Richland (AIM: RLD), the gemstones producer and developer, announces, further to its announcement of 25 June 2018, the conversion by certain of the Company's existing Directors and senior management team, certain former directors and a former consultant of an aggregate amount of GBP207,537 (comprising US$275,215 at the USD:GBP exchange rate of 1.3261 on 22 June 2018) of fees accrued for periods ranging from December 2016 to 31 May 2018 into new common shares of US$0.0003 each in the capital of the Company ("Common Shares") (the "Fee Conversion"). Pursuant to the Fee Conversion, the Company is today issuing, in aggregate, 74,120,531 new Common Shares (the "Conversion Shares") at an issue price of 0.28 pence per share (the "Conversion Price"), representing a premium of approximately 27 per cent. to the Company's closing mid-market share price of 0.22 pence on 5 July 2018, being the latest practicable date prior to the date of this announcement.

The Fee Conversion will assist the Company in conserving its cash reserves whilst it seeks to procure sufficient longer-term financing during Q3 2018 to enable the recommencement of production at the Company's Capricorn Sapphire mine.

In addition, the Company is today issuing a further an additional 16,000,000 new Common Shares (the "Professional Fee Shares") at the Conversion Price in relation to professional fees due though to to 31 December 2018.

Application will be made for the abovementioned, in aggregate, 90,120,531 new Conversion Shares and Professional Fee Shares to be admitted to trading on AIM and admission is expected to take place on or around 12 July 2018 ("Admission"). Following Admission, the Company will have 568,353,850 Common Shares with voting rights in issue and holds a further 7,275,000 Common Shares in treasury.

The allocation of the Conversion Shares is set out below:

 
 Existing Directors      16,324,599 
 Former Directors        19,609,173 
 Senior Management & 
  Former Consultant      38,186,759 
----------------------  ----------- 
 Total                   74,120,531 
 

Following Admission, the beneficial shareholdings of each existing Richland director receiving Conversion Shares will be as follows:

 
 Director           Position                    Number of Conversion   Total Number of Common       % of voting rights 
                                               Shares to be received           Shares held on        held on Admission 
                                                                                    Admission 
-----------------  ------------------------  -----------------------  -----------------------  ----------------------- 
 Anthony Brooke     Chief Executive Officer               11,527,361               15,741,955                     2.77 
-----------------  ------------------------  -----------------------  -----------------------  ----------------------- 
 Nicholas Sibley    Non-Executive Director                 4,797,238               65,287,741                    11.49 
-----------------  ------------------------  -----------------------  -----------------------  ----------------------- 
 

Related Party Transactions

The conversions of accrued fees into new Common Shares by Anthony Brooke, Nicholas Sibley, and certain former directors, as detailed above, are deemed to be related party transactions pursuant to Rule 13 of the AIM Rules for Companies. Accordingly, the independent director for the purposes of the issue of the Conversion Shares to such individuals, being Edward Nealon, having consulted with the Company's Nominated Adviser, Strand Hanson Limited, considers that the terms of the issue of the Conversion Shares to such individuals are fair and reasonable insofar as the Company's shareholders are concerned.

For further information please contact:

 
 Edward Nealon       Tony Brooke                   Mike Allardice 
  Chairman            Chief Executive               Group Company 
  [phone]         Officer                       Secretary 
  955                 [phone]               [phone] 
 Nominated Adviser   Broker 
  Strand Hanson       Shore Capital Stockbrokers 
  Limited             Ltd 
  James Harris        Jerry Keen (corporate 
  Matthew Chandler    broking) 
  James Dance         Toby Gibbs / Mark 
  [phone]     Percy (corporate 
  3494                finance) 
                      [phone] 
                      4090 
 

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

PDMR Notification Forms:

The notifications below are made in accordance with the requirements of MAR.

 
 1.   Details of the person discharging managerial 
       responsibilities / person closely associated 
---  ------------------------------------------------------------ 
 a)   Name                             Nicholas Sibley 
---  -------------------------------  --------------------------- 
 2.   Reason for the Notification 
---  ------------------------------------------------------------ 
 a)   Position/status                  Non-Executive Director 
---  -------------------------------  --------------------------- 
 b)   Initial notification/amendment   Initial notification 
---  -------------------------------  --------------------------- 
 3.   Details of the issuer, emission allowance market 
       participant, auction platform, auctioneer or 
       auction monitor 
---  ------------------------------------------------------------ 
 a)   Name                             Richland Resources Ltd 
---  -------------------------------  --------------------------- 
 b)   LEI                              213800ZBDLZC9TO5W864 
---  -------------------------------  --------------------------- 
 4.   Details of the transaction(s):section to be 
       repeated for (i) each type of instrument; (ii) 
       each type of transaction; (iii) each date; 
       and (iv)each place where transactions have 
       been conducted 
---  ------------------------------------------------------------ 
 a)   Description of the               Common shares of US$0.0003 
       Financial instrument,            each 
       type of instrument 
---  -------------------------------  --------------------------- 
      Identification code              BMG7567C1064 
---  -------------------------------  --------------------------- 
 b)   Nature of the Transaction        Conversion of unpaid fees 
---  -------------------------------  --------------------------- 
 c)   Price(s) and volume(s)            Price(s)   Volume(s) 
                                        ---------  ---------- 
                                         0.28p      4,797,238 
                                        ---------  ---------- 
---  -------------------------------  --------------------------- 
 d)   Aggregated information           N/A (Single transaction) 
       Aggregated volume 
       Price 
---  -------------------------------  --------------------------- 
 e)   Date of the transaction          6 July 2018 
---  -------------------------------  --------------------------- 
 f)   Place of the transaction         London Stock Exchange, AIM 
                                        Market (XLON) 
---  -------------------------------  --------------------------- 
 
 
 1.   Details of the person discharging managerial 
       responsibilities / person closely associated 
---  ------------------------------------------------------------ 
 a)   Name                             Anthony Brooke 
---  -------------------------------  --------------------------- 
 2.   Reason for the Notification 
---  ------------------------------------------------------------ 
 a)   Position/status                  Chief Executive Officer 
---  -------------------------------  --------------------------- 
 b)   Initial notification/amendment   Initial notification 
---  -------------------------------  --------------------------- 
 3.   Details of the issuer, emission allowance market 
       participant, auction platform, auctioneer or 
       auction monitor 
---  ------------------------------------------------------------ 
 a)   Name                             Richland Resources Ltd 
---  -------------------------------  --------------------------- 
 b)   LEI                              213800ZBDLZC9TO5W864 
---  -------------------------------  --------------------------- 
 4.   Details of the transaction(s):section to be 
       repeated for (i) each type of instrument; (ii) 
       each type of transaction; (iii) each date; 
       and (iv)each place where transactions have 
       been conducted 
---  ------------------------------------------------------------ 
 a)   Description of the               Common shares of US$0.0003 
       Financial instrument,            each 
       type of instrument 
---  -------------------------------  --------------------------- 
      Identification code              BMG7567C1064 
---  -------------------------------  --------------------------- 
 b)   Nature of the Transaction        Conversion of unpaid fees 
---  -------------------------------  --------------------------- 
 c)   Price(s) and volume(s)            Price(s)   Volume(s) 
                                        ---------  ----------- 
                                         0.28p      11,527,361 
                                        ---------  ----------- 
---  -------------------------------  --------------------------- 
 d)   Aggregated information           N/A (Single transaction) 
       Aggregated volume 
       Price 
---  -------------------------------  --------------------------- 
 e)   Date of the transaction          6 July 2018 
---  -------------------------------  --------------------------- 

 f)   Place of the transaction         London Stock Exchange, AIM 
                                        Market (XLON) 
---  -------------------------------  --------------------------- 
 

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 [e-mail] or visit www.rns.com.

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July 06, 2018 02:00 ET (06:00 GMT)