Proposed Acquisition & Suspension of Trading

RNS Number : 2610E

Mila Resources PLC

27 February 2020

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) 596/2014 (MAR). ON PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Mila Resources Plc / Index: LSE / Epic: MILA / Sector: Natural Resources

27 February 2020

Mila Resources Plc ("Mila Resources" or "the Company")

Proposed Acquisition of E-Tech Metals and Suspension of Trading

Mila Resources, a London Stock Exchange traded natural resource focused company, is pleased to announce that it has entered into a non-binding Head of Terms with regards to the possible acquisition of 100% of the share capital of E-Tech Metals Ltd ('E-Tech') to be satisfied in New Ordinary Shares of the Company ('the Proposed Transaction').  E-Tech is a private company developing projects in the critical and strategic metals industry and its primary asset is the high-grade Eureka Rare Earth Project in Namibia.

The Proposed Transaction remains subject to due diligence, completion of the acquisition and re-listing of the enlarged group on the Official List. 

The Proposed Transaction, if completed, would constitute a reverse takeover under the Listing Rules.  As the Company is currently unable to provide a full disclosure under Listing Rule 5.6.15, it has requested a temporary suspension of listing in its ordinary shares with effect from 8.00 a.m. today, 27 February 2020, pending the publication of a prospectus and the application for the enlarged Company to have its Ordinary Shares admitted to the Official List and to trading on the Main Market for listed securities of the London Stock Exchange. The Proposed Transaction will be subject to approval by shareholders of the Company at a general meeting.

Mila Executive Director, Mark Stephenson, said "The critical and strategic metals industry represents an area of significant growth in the coming decades as international policy makers and manufacturers turn increasingly to electric vehicles and efficient energy storage.  The Eureka Project would provide Mila with a highly attractive entry point into this market as this asset not only combines high grade neodymium and praseodymium mineralisation, two of the most prized and high value elements in the Rare Earth group of metals, but also offers the potential for near-term, low-capex and low-opex production."

Whilst the board is resolute in its efforts to execute the Proposed Transaction, no binding agreement has yet been reached and accordingly, the board cannot at this stage guarantee its completion.  Further announcements will be made in due course.

**ENDS**

 For more information visit www.milaresources.com or contact:

Mark Stephenson	Mila Resources Plc	[phone]
Jonathan Evans	Brandon Hill Capital	[phone]
Susie Geliher / Beth Melluish	St Brides Partners Ltd	[phone]

 

END

 

 

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