Issue of Performance Based Securities

RNS Number : 8133D

Harvest Minerals Limited

05 February 2018

 

Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector: Mining

5 February 2018

Harvest Minerals Limited

('Harvest' or the 'Company')

Issue of Performance Based Securities

Harvest Minerals, the AIM listed fertiliser development company, is pleased to announce that it has approved an incentivisation scheme for Executive Directors and Senior Management (together, 'Management').

Since the Company obtained its AIM quotation in September 2015, the Company's share price has experienced a significant increase which has been driven, amongst other things, by the significant operational milestones that have been achieved towards developing the Arapua multi-nutrient potash and phosphate direct application natural fertiliser ('DANF') project in Brazil, including:

·     Identification of a JORC Indicated and Inferred Resource of 13.07Mt at 3.1% K₂O and 2.49% P₂O₅

o  Results based on drilling just 6.7% of the known mineralisation

o  Resource is equivalent over 29 years' production and known mineralisation expected to support 100+ years' production at 450,000 tonnes per annum

o  Regional drilling programme confirming grade and thickness continuity

·     Excellent results from various independent agronomic tests of its KPfértil DANF product

·     First sales with coffee growers, orchard and broad acre crop farmers

·     Modular processing plant fabricated and installed, completing low-cost production chain

·     Application made to MAPA to register KPfértil as a mineraliser product

There is no incentive scheme currently in place for Management and therefore in order to further improve the alignment of the interests of Management with those of the Company's shareholders, the Non-Executive Directors have resolved to issue the following performance based securities ('Performance Shares'):

Name	Position	Number of Performance Shares to be granted
Brian McMaster	Executive Chairman	2,000,000
Luiz Azevedo	Executive Director	2,000,000
Mark Heyhoe	Chief Operating Officer	1,000,000
Luis Clerot	Project Manager	1,000,000

The Performance Shares will be issued for nil consideration in four equal tranches, subject to the achievement of the following performance conditions:

Tranche	Performance Condition
1	Milestones achieved in the period from September 2015 to December 2017
2	Receipt of MAPA certification
3	Total sales of 30,000 tonnes or more
4	Receipt of full mining licence

As the performance condition for the issue of the Tranche 1 Performance Shares has been met, the Company has issued, in aggregate, 1.5 million new Ordinary Shares to Management as follows:

Name	Number of Tranche 1 Performance Shares issued	Resultant Ordinary Share holding in the Company
Brian McMaster	500,000	2,080,834
Luiz Azevedo	500,000	510,000
Mark Heyhoe	250,000	250,000
Luis Clerot	250,000	250,000

Related Party Transaction

The issue of the Performance Shares to Management is deemed a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The directors independent of the award of the Performance Shares (being the Non-Executive Directors of the Company) consider, having consulted with the Company's nominated adviser, that the terms of the award are fair and reasonable insofar as Shareholders of the Company are concerned.

Admission to Trading and Total Voting Rights

The Tranche 1 Performance Shares rank pari passu with the Company's existing Ordinary Shares.  Application has been made for the Tranche 1 Performance Shares to be admitted to trading on AIM ('Admission').  It is expected that Admission will become effective and dealings in the Tranche 1 Performance Shares will commence on or around 8 February 2018.

Following the issue of the Tranche 1 Performance Shares, the total issued share capital of the Company consists of 130,338,589 Ordinary Shares with voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of voting rights in the Company is 130,338,589 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 under the FCA's Disclosure and Transparency Rules.

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

ENDS

For further information please visit www.harvestminerals.net or contact:

Harvest Minerals Limited	Brian McMaster (Chairman)	Tel: [phone]
Strand Hanson Limited (Nominated & Financial Adviser)	James Spinney Ritchie Balmer	Tel: [phone]
Shard Capital Partners (Joint Broker)	Damon Heath	Tel: [phone]
Beaufort Securities Ltd (Joint Broker)	Jon Belliss	Tel: [phone]
St Brides Partners Ltd	Isabel de Salis Gaby Jenner	Tel: [phone]

Notes:

Harvest Minerals (HMI.L) is a Brazilian focused fertiliser producer advancing the 100% owned Arapua Fertiliser Project, which produces KPfértil, a proven, multi-nutrient, slow release, organic fertiliser and remineraliser.  KPfértil offers many economic and agronomic benefits and addresses the significant demand for locally produced fertiliser in Brazil, with its abundant agricultural land; currently, the country imports 90% of the potash it uses but has a target to be self-sufficient in fertilisers by 2020.  Covering 14,946 hectares and located in the heart of the Brazilian agriculture belt in Minas Gerais, Arapua is a shallow, low cost mine with an indicated and inferred resource of 13.07Mt at 3.1% K₂O and 2.49% P₂O₅.  This is based on drilling just 6.7% of the known mineralisation, leaving significant upside potential. This resource is equivalent over 29 years' production and the known mineralisation expected to support 100+ years' production at 450,000 tonnes per annum.

 

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