Conditional Placing to Raise £0.5 Million

RNS Number : 4048L

Pathfinder Minerals Plc

03 January 2023

 

3 January 2023

Pathfinder Minerals Plc

("Pathfinder" the "Company")

Conditional Placing to Raise £0.5 Million

Pathfinder announces that it has entered into an agreement with an FCA authorised financial institution (the "Broker") to raise £0.5 million before expenses by way of a placing of 100,000,000 new ordinary shares of 0.1 pence each in the Company ("Ordinary Shares") at a price of 0.5 pence per share (the "Placing"). Additionally, Pathfinder will issue warrants to the Broker over 5,000,000 Ordinary Shares with an exercise price of 0.5 pence valid for a period of two years ("Broker Warrants").

The price at which the Placing is being conducted represents a 4% premium to the closing price of an Ordinary Share of Pathfinder on 30 December 2022, being the last trading day prior to the publication of this announcement.

The net proceeds from the Placing will be used for general working capital purposes and, as a condition of the Placing, to repay the loan facility of up to £160,000 plus interest (the "Loan") as described in the Company's announcements dated 29 September 2022 and 28 December 2022. As previously announced on 28 December 2022, the Loan was ultimately placed with an individual, with such individual also being the ultimate owner and controller of the Broker.

The completion of the Placing and issue of Broker Warrants are conditional, inter alia, on the receipt of shareholder approval of the necessary resolutions to enable the issue of the new Ordinary Shares to satisfy the Placing and the Broker Warrants (in the event they are exercised) free of pre-emption rights. Accordingly, the Company will in due course publish a circular in connection with the Placing (the "Circular") to convene the necessary General Meeting to seek shareholder approval to allot shares in the Company and to disapply pre-emption rights. A further announcement will be made upon publication of the Circular, which is expected by mid-January 2023.

The Company is also in discussions with Acumen Advisory Group LLC ("Acumen") with regards to granting an extension of Acumen's exclusive option announced on 29 September 2022 to acquire IM Minerals Limited, a wholly owned subsidiary of Pathfinder, and the rights to bring a claim against the Government of Mozambique.

Peter Taylor, Chief Executive Officer of Pathfinder, commented:

"Through the Placing, Pathfinder is strengthening its balance sheet thereby enabling the Company to pursue both new opportunities for value creation within the minerals sector and the monetisation of the Company's claim against the Government of Mozambique."

Enquiries:

Pathfinder Minerals Plc

Peter Taylor, Chief Executive Officer

Tel. +44  [phone]

Strand Hanson Limited (Nominated & Financial Adviser and Broker)

James Spinney / Ritchie Balmer / Abigail Wennington

Tel. [phone]

Vigo Consulting (Investor Relations)

Ben Simons / Kate Kilgallen

Tel. [phone]

Email [e-mail]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

 

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