Issue of Equity

RNS Number : 9528M

Sula Iron & Gold PLC

03 August 2017

 

  Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources

3 August 2017

Sula Iron & Gold plc

("Sula" or the "Company")

Issue of Equity

Sula (AIM: SULA), the gold exploration company focused on Sierra Leone, is pleased to announce that it has issued 67,290,037 new ordinary shares ("Ordinary Shares") to Equity Drilling Limited ("Equity"), the Company's drill contractor for its recently completed Phase 3 drilling of 5,184 metre on its flagship Ferensola gold project.

As part of their drilling contract Equity elected to receive 50 per cent. of its payment in new Ordinary Shares, approximately half of which were due after the completion of drilling. Accordingly Sula will issue 67,290,037 new Ordinary Shares to Equity based upon a price of 0.225p per share, being the closing mid-market price of the Company's shares on 31 July 2017. The issue of these shares represents approximately half of the element of the drilling contract. The remaining balance of shares due to Equity will be issued towards the end of September, a further announcement will be made in due course.

Accordingly, application will be made for the new Ordinary Shares to be admitted to trading on AIM ("Admission") and it is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 a.m. on 8 August 2017.  The new Ordinary Shares will represent approximately 2.7 per cent. of the Company's Enlarged Share Capital. The new Ordinary Shares will rank pari passu in all respects with the Company's existing Ordinary Shares and will be issued fully paid.

Following Admission, the Company's Enlarged Share Capital will comprise 2,502,330,709 Ordinary Shares. This figure may be used by shareholders as the denominator for the calculations by which they may determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Roger Murphy, CEO of Sula commented:

"We would like to thank Equity Drilling for the very rapid completion of this latest 5,184 metre drill campaign ahead of the onset of the rainy season in Sierra Leone.  Equity Drilling has averaged over 100 metres per day of core drilling with excellent core recovery from their two drill rigs and our payment arrangement has allowed us to drill almost double what we would have achieved had we paid in cash alone.   Assay results from the first three holes of this Phase 3 drill campaign have also been reported today with very encouraging results. As a result of our strong relationship with Equity Drilling, Sula has managed to drill almost 9,000 metres on our flagship Ferensola Gold Project in the last 6 months, a fantastic achievement"

*ENDS**

For further information please contact:

Sula Iron & Gold plc	[phone]
Roger Murphy (CEO)
WH Ireland Limited (Nominated Adviser and Broker)	[phone]
Paul Shackleton / James Bavister
VSA Capital Limited (Broker)	[phone]
Andrew Raca
Blytheweigh (Public Relations)	[phone]
Camilla Horsfall/ Nick Elwes
Ongeza Mining (Financial and Technical Adviser)	[phone]
Iain Macpherson / Ilja Graulich

Notes:

Sula Iron & Gold plc is a gold focused exploration company in West Africa. The Company's main objective is to explore and advance its 153km2 Ferensola Project in Northern Sierra Leone. In June 2015, the Company defined a JORC Exploration Target on its Ferensola Gold Project. The Exploration Target centres on Sanama Hill, with a tonnage range of between 5 and 7 million tonnes ("Mt"), grading at between 4 and 8 g/t Au, which equates to between 0.8 and 1.5 million ounces ("Moz") Au. The Exploration Target was restricted to a 2km strike length segment of the regional fold belt that is believed to extend for over 10km.

 

END

 

 

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