Shefa Yamim (A.T.M.) Ltd Placing and Subscription for GBP1.0M (8481Y)

TIDMSEFA

RNS Number : 8481Y

Shefa Yamim (A.T.M.) Ltd

13 May 2019

B"H

13 May 2019

Shefa Yamim (A.T.M.) Ltd

("Shefa Yamim", "Shefa Gems" or the "Company")

Institutional and HNW Equity Placing and Subscription for GBP1.0M

Shefa Yamim (LON: SEFA), a company focused on advanced exploration and development of multi-gemstone projects in Northern Israel, is pleased to announce that it has raised GBP1.0 million (before expenses) from new shareholders through a subscription and placing of 25,000,000 new ordinary shares of 0.10 NIS each in the Company ("Subscription and Placing Shares") at an issue price of 4 pence per share (the "Placing").

Pursuant to the Placing, the Company will issue to the holders of the Subscription and Placing Shares one warrant to subscribe for one new Ordinary Share for every Subscription and Placing Share subscribed for by them with an exercise price of 8p (the "Warrants"), exercisable for a period of twenty-four months from the date of the admission to trading ("Admission") of the Subscription Shares. The Placing is conditional only on Admission.

The new Shareholders include a mixture of specialist institutional investors and sophisticated High Net Worth ("HNW") investors who are attracted to the potential risk/returns from advanced to development stages of the natural resource and mining projects.

Shefa Yamim Founder and CEO, Avi Taub, stated: "We are pleased to welcome our new shareholders on to our share register. The level of demand from specialist institutional investors and HNW investors is a strong endorsement of the Kishon Mid-Reach Zone 1 project at a vital stage of its development. The funds will enable us to unlock the true potential of this globally unique multi-gemstone opportunity, and rapidly develop our low-cost mining operations in the Kishon Mid-Reach Zone 1 region.

"In addition, the funds will also support our unique "Mine to Market" strategy to promote our suite of precious gems to markets worldwide, and ultimately contribute in achieving the associated enhanced economic returns for stakeholders."

The net proceeds of the Subscription will be used by Shefa Yamim for continued operations in Akko in the processing facility to advance the project to mining via the completion of a mine planning, engineering and environmental report for mining license submission to the Ministry of Energy Natural Resources Administration Israel for Kishon Mid-Reach Zone 1. The processing facility is currently capable of processing up to 50 tph and on issuance of the mining license is expected to commence commercial operations in early 2020.

In addition to the Kishon Mid-Reach Zone 1 mine development for which the Company is expecting to receive mine permitting by the end of Q4 2019, bulk sampling campaigns for Zone 2 will be carried out in H2 2019. This will be in conjunction with further resource delineation and bulk sampling campaigns in Kishon Mid-Reach Zone 3 through the remainder of 2019. These programs all have the potential to add significant mine life and value to the unique 'near-to' commercial discovery and mining opportunity within Kishon MR Zone 1.

Shefa Yamim is continuing to develop its "Mine to Market" strategy for its downstream activities to ensure the unique geology in the Kishon region unlocks the premium value of these multi-gemstone projects for the benefit of shareholders. These funds are expected to see the Company through the final stages of permitting in Kishon Mid-Reach Zone 1 and the subsequent commencement of commercial operations and associated cashflows by Q1 2020.

Use of Funds:

   -- Kishon Mid-Reach (Alluvial) - Zone 1: Planning for mining licensing costs - engineers and architects 
 
   -- Kishon Mid-Reach (Alluvial) - Zone 2: 3 - 4 bulk sampling 
 
   -- Kishon Mid-Reach (Alluvial) - Zone 3: 120 drilling + 3 bulk sampling (not finalised) 
 
   -- All Company Administration, Management, Head Offices and working capital 
 
   -- Cost of the project ongoing operations site Akko *(Including payment for renewed prospecting exploration) 
 
   -- Establishment, development and implementation of the mine to market strategy - branding and designing collections 

The Management team is committed to provide quarterly updates on the progress of the upstream, associated downstream and mine to market activities.

On 11 April 2019, the Company announced its intention to change the English name of the Company to Shefa Gems Ltd. The proposed change is a reflection of the Company's "Mine to Market" strategy. By renaming itself as Shefa Gems, it will enable the Company to build a global brand by leveraging the positive brand-value associated with the rare gemstones amongst the suite of precious stones found in the Kishon Mid-Reach area.

To date cUS$36 million has been invested into the Kishon project area in capital and operational expenditure, which has developed the project to the 'mine ready stage'. Upon approval of submissions and granting of the mining license, no further significant capital expenditure is required for the start-up of the low-cost Kishon Mid-Reach Zone 1 mine with the base processing capacity of up to 50 tph operation.

Total Voting Rights

The Placing Shares, which represent 14.9 per cent. of the Company's enlarged issued share capital, will be issued credited as fully paid and rank pari-passu in all respects with the existing Ordinary Shares. Application has been made for 25,000,000 Subscription/Placing Shares to be admitted to trading on the Standard List segment of the main market of the London Stock Exchange ("Admission"). It is expected that Admission will become effective and that dealings in the Placing Shares will commence at 8.00am on 20 May 2019.

Following the issue of the Placing Shares, the total issued share capital of the Company will consist of 167,360,000 Ordinary Shares. Therefore, the total number of voting rights in the Company will be 167,360,000 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest, in the share capital of the Company.

- Ends -

Enquiries

 
 Shefa Yamim (A.T. M.) Ltd 
 Michael Rosenberg, OBE - Chairman 
  www.shefayamim.com                          [phone] 
                                             ----------------------- 
 
 VSA Capital Limited - Financial Adviser 
                                             ----------------------- 
 Andrew Raca                                  [phone] 
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 SI Capital Limited - Broker and Strategic 
  Adviser 
                                             ----------------------- 
                                              [phone] / +44 
 Nick Emerson and Jon Levinson                 1483 413500 
                                             ----------------------- 
 
 Luther Pendragon 
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 Harry Chathli, Alexis Gore, Rachel 
  So                                          [phone] 
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Notes to Editors

About Shefa Yamim (A.T.M.)

Shefa Yamim (LSE: SEFA) is a multi-commodity explorer of precious stones operating in Northern Israel. Exploration activity is managed by professionally skilled and technically competent personnel and is accompanied by an international team of geological experts with decades of proven experience in their fields.

All exploration activities are conducted under international standards and the internationally recognised SAMREC 2016 Code. Furthermore, its permits, granted to it by the Commissioner of Mines, extend over an area of approximately 600,000 Dunam (60,000 hectares) that includes the Kishon River, the volcanic bodies on Mount Carmel, the Zevulun and Yizre'el valleys and their margins - Menashe Hills, Tivon-Alonim Hills, and Nazareth range. The Company upholds environmental values and protects the nature in the areas where it operates, cooperating fully with all authorities.

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May 13, 2019 08:26 ET (12:26 GMT)