Issue of shares

RNS Number : 3288Y

Equatorial Mining & Exploration PLC

07 September 2015

 

Equatorial Mining & Exploration Plc (the "Company")

Issue of shares

Directorate Share Dealings

On 31 August the Company was due to receive an investment which would have provided the Company with sufficient capital for its ongoing business. For reasons outside of the Company's control that investment was not received. 

The Company has agreed terms for a replacement funding stream of £300,000 in two tranches which ensures the Company has sufficient capital to continue to trade and to commence development of its mining assets in Nigeria.

However, in order to satisfy certain short term creditors and essential working capital needs, the Company has completed a Placing with the Directors to raise £35,500. At the placing price of 0.4p, a total of 8,875,000 new ordinary shares have been issued plus 710 million warrants to subscribe for ordinary shares at 0.01p per share. The exercise of the warrants is conditional upon the directors achieving a series of key, business critical, milestones for the Company.

Completion of this interim fund raising has taken place in advance of the receipt of the £300,000 loan facility which is expected to complete within the next ten days.  The completion of the interim fund raising is a condition of the loan facility.

The Placing and the loan facility together provide the Company with sufficient working capital for the next 12 months.

Further details of the loan facility will be announced on its completion.

Directorate share dealings

As a result of these additional shares and warrants, the Directors' new holdings are tabulated below:

	Ordinary Shares	Ordinary share interest in the Equatorial EBT	Warrants over ordinary shares
Nicholas Nelson	153,500,000	235,740,000	280,000,000
Alyn Evans	250,000	115,000,000	20,000,000
Simon Retter	750,000	0	60,000,000

Following today's issue of shares, the total ordinary shares in issue is 4,271,816,670.

Nicholas Nelson, Executive Chairman, commented:

"I believe that our recent exploration report represented the most positive news in our history. We have been informed that our discovery of 39 million tons of high grade, open cast, thermal coal is thought to be Nigeria's biggest coal discovery.

"The Directors remain fully committed to taking EME towards productivity. To this end, Alyn Evans and I plan a lengthy trip to Nigeria from mid-September to advance discussions with potential coal customers and contract mining companies.  We have every hope for success."

07 September 2015

Enquiries:

Equatorial Mining & Exploration Plc: Nicholas Nelson, Executive Chairman	[e-mail]
ISDX Adviser and Broker Alexander David Securities James Dewhurst	[phone]
Financial PR and Investor Relations: Walbrook PR Ltd. Guy McDougall Nick Rome	[phone]

The Directors take responsibility for this announcement.

 

END

 

 

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