Agreement for Additional Interest in Horse Hill

RNS Number : 9984T

Alba Mineral Resources PLC

18 October 2017

 

Alba Mineral Resources plc

("Alba" or the "Company")

Agreement to Acquire Further Interest in Horse Hill

Alba Mineral Resources plc (AIM: ALBA) is pleased to announce that it has executed a binding conditional agreement ("Agreement") to acquire the 3.1 per cent shareholding interest held by Regency Mines Plc ("Regency") in Horse Hill Developments Limited ("HHDL") ("Sale Interest").  The total consideration payable is £630,000 including the assignment to Alba of the benefit of all accrued loans in respect of the Sale Interest.

Acquisition terms

The total purchase price of £630,000 for 31 ordinary shares in HHDL, comprising a 3.1% shareholding, shall be paid in a combination of cash and fully paid ordinary shares in Alba, with the proportion of cash and shares to be determined by Alba subject to a minimum cash component of £315,000.  Any proportion of the purchase price to be settled in shares shall be settled on the basis of a deemed share price for Alba ordinary shares equal to the volume weighted average price of Alba ordinary shares in the 15 trading days prior to Completion.  Any proposed disposal by Regency of Alba consideration shares shall be subject to a six month orderly marketing provision post-Completion.

Completion of the acquisition is subject to the satisfaction, or waiver by Alba, of certain conditions precedent including relating to confirmatory due diligence to Alba's satisfaction in respect of the Sale Interest and receipt of all necessary third party or regulatory consents, approvals and waivers (including in respect of a first right of refusal which Alba has been informed was granted by Regency to UK Oil & Gas Investments Plc in respect of Regency's remaining holding in HHDL).

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

Alba Mineral Resources plc

George Frangeskides (Executive Chairman)      Tel: [phone]

Cairn Financial Advisers LLP (Nomad)

James Caithie/Liam Murray                              Tel: [phone]

Dowgate Capital Stockbrokers Ltd (Broker)

Neil Badger                                                   Tel: [phone]

Alba's Project Portfolio

Oil & Gas

Horse Hill (Oil & Gas, UK): Alba holds a 15 per cent interest, and has conditionally agreed to acquire a further 3.1 per cent interest, in Horse Hill Developments Limited, the company which has a 65 per cent participating interest and operatorship of the Horse Hill oil and gas project (licences PEDL 137 and PEDL 246) in the UK Weald Basin.

Brockham (Oil & Gas, UK): Alba has a direct 5% interest in Production Licence 235, which comprises the previously producing onshore Brockham Oil Field.

Mining

Amitsoq (Graphite, Greenland):  Alba owns a 90 per cent interest in the Amitsoq Graphite Project in Southern Greenland and has an option over the remaining 10 per cent. 

Black Sands (Ilmenite, Greenland):  Alba owns 100 per cent of mineral exploration licences 2017/29 and 2017/39 in the Thule region, north-west Greenland.

Melville Bay (Iron Ore, Greenland): Alba is entitled to a 51 per cent interest in mineral exploration licence 2017/41 in Melville Bay, north-west Greenland.  The licence area benefits from an existing inferred JORC resource of 67 Mt @ 31.4% Fe.

Inglefield Land (Copper, Cobalt, Gold): Alba owns 100 per cent of mineral exploration licence 2017/40 in north-west Greenland.

Limerick (Base Metals, Ireland): Alba has 100 per cent of the Limerick base metal project in the Republic of Ireland.

El Mreiti (Uranium, Mauritania): Alba has applied for the reissue of a uranium permit in northern Mauritania, centred on known uranium-bearing showings.

Alba continues actively to review numerous other project opportunities which have value-enhancing potential for the Company whether by bolt-on or stand-alone acquisition, farm in or joint venture.

Web: www.albamineralresources.com

 

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