Stratmin Global Resources PLC Update on Reverse Takeover (1613K)

TIDMSTGR

RNS Number : 1613K

Stratmin Global Resources PLC

05 July 2017

05 July 2017

StratMin Global Resources Plc

("StratMin" or the "Company")

Update on Reverse Takeover

Further to the Company's most recent announcement of 21 June 2017, StratMin is pleased to announce an update on the timing and process of the proposed acquisition of Signature Gold Limited ("Signature Gold"), a specialist Australian gold exploration company focused on large-scale Intrusive Related Gold System ("IRGS") assets in Queensland, Australia (the "Transaction").

The Company is seeking to raise by subscription and placing GBP5.72 million, in order to develop Signature Gold's portfolio of early stage IRGS gold assets in Australia. The Company is pleased to announce that it has conditionally secured a GBP5 million subscription for 206,700,000 ordinary shares of 0.01 pence each in the capital of the Company ("Subscription Shares") ahead of the associated UK roadshow. On completion of the Transaction, the investment will be made by Axel Management Group Pty Ltd ("Axel"), an Australian incorporated investment company, at the price of 2.4 pence per ordinary share. The anticipated use of proceeds are as follows:

 
      Sources of funds        2017 (H2)   2018    Total 
          (A$000's) 
---------------------------  ----------  ------  ------- 
 Available Group Funds            1,129       -    1,129 
---------------------------  ----------  ------  ------- 
 Placing                         9,681*       -    9,681 
---------------------------  ----------  ------  ------- 
 Total                           10,810       -   10,810 
---------------------------  ----------  ------  ------- 
 
 Use of funds (A$000's)         2017      2018    Total 
---------------------------  ----------  ------  ------- 
 RTO Expenses, Commissions 
  and Fees                        1,313       -    1,313 
---------------------------  ----------  ------  ------- 
 Corporate (UK, AUS)                307   1,211    1,518 
---------------------------  ----------  ------  ------- 
 Loan repayment                     290       -      290 
---------------------------  ----------  ------  ------- 
 Drilling                           450   1,522    1,972 
---------------------------  ----------  ------  ------- 
 Geophysics                         439      99      538 
---------------------------  ----------  ------  ------- 
 Geology/Geochem                    489     478      967 
---------------------------  ----------  ------  ------- 
 Geometallurgy                        -     123      123 
---------------------------  ----------  ------  ------- 
 Mine Planning                        -     120      120 
---------------------------  ----------  ------  ------- 
 Tenement Rents and 
  Compliance                        138     237      375 
---------------------------  ----------  ------  ------- 
 Technical Salaries                 250     500      750 
---------------------------  ----------  ------  ------- 
 Elbrus Feasibility                 150     700      850 
---------------------------  ----------  ------  ------- 
 Capital Expenditure                  -     100      100 
---------------------------  ----------  ------  ------- 
 Working Capital                                   1,896 
---------------------------  ----------  ------  ------- 
 Total                            3,825   5,089   10,810 
---------------------------  ----------  ------  ------- 
 

*Conversion rates used to convert British Pound (GBP) to Australian dollars (AUD) for the purposes of this table are the closing rates as published by OANDA.com, As at 30 June 2017: GPB1 = AU$1.6925.

The Subscription Shares will be admitted to trading on AIM on the same day as the enlarged share capital of the Company.

Further information can be found on the Signature Gold website, www.signaturegold.com.au, where copies of the Scheme Booklet can be found following its publication on 30 June 2017, as announced by the Company on 30 June 2017.

Brett Boynton, CEO of StratMin, said,

"We are very pleased to announce the vast majority of our target fundraise has now been secured. This is a significant milestone in the transaction and leaves us in a good position to push ahead with what will be a transformative reverse takeover for both StratMin and Signature Gold.

"Signature Gold's existing Australian portfolio and non-binding option to acquire 51% of the Kasperske Hory project in Czech Republic offers an exciting opportunity to generate significant value for shareholders through application of its proven IRGS exploration model.

"We look forward to updating the market further as this transaction progresses."

Further announcements will be made by the Company in due course.

For further information please visit www.stratminglobal.com or contact:

 
 StratMin Global Resources Plc         +44 (0) 20 
  Brett Boynton, CEO                    3691 6160 
 Allenby Capital Limited (Nominated 
  Adviser & Broker) 
  John Depasquale / Nick Harriss       +44 (0) 20 
  / Richard Short                       3328 5656 
 VSA Capital Limited (Financial 
  Adviser & Broker)                    +44 (0) 20 
  Andrew Raca                           3005 5000 
 Optiva Securities (Broker)            +44 (0) 20 
  Christian Dennis                      3137 1903 
 Yellow Jersey PR 
  Felicity Winkles                     +44 (0) 776 
  Joe Burgess                           932 5254 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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July 05, 2017 02:30 ET (06:30 GMT)