Completes First Leg of Investment & Issues Equity

RNS Number : 7964D
Strategic Minerals PLC
11 July 2016
 

11 July 2016

 Strategic Minerals plc

("Strategic Minerals" or the "Company")

 

SML Completes First Leg of Redmoor Investment and Issues Equity

 

Further to its announcement on 26 May 2016, regarding the investment in NAE Resources (UK) Limited ("Redmoor"), Strategic Minerals Plc (AIM: SML; USOTC: SMCDY), the minerals production and development company, announces that it has now acquired a total of 30,973 new ordinary shares in Redmoor at a price of £3.39 per share, representing approximately 9% of the issued capital of Redmoor (as enlarged by the issue of these new shares), for a total consideration of £104,998.47.  In line with the completion of the acquisition of these shares, the Company has issued to New Age Exploration Limited ("NAE") the second tranche of new ordinary shares of 0.1p each in the Company ("Ordinary Shares") pursuant to the tripartite agreements entered into between the Company, NAE and Redmoor, further details of which were announced on 26 May 2016.. The Company has today issued 10,000,000 Ordinary Shares (the "Subscription Shares") to NAE at a price of 0.3 pence per Ordinary Share, for a total consideration of £30,000.

 

Application has been made for admission of the Subscription Shares to trading on AIM ("Admission") and it is expected that Admission will occur on or around 15 July 2016.

.

Total voting rights

 

Following the issue of the Subscription Shares and with effect from Admission, the Company's issued share capital will consist of 1,068,492,227 Ordinary Shares, with one voting right per share. Strategic Minerals does not hold any ordinary shares in treasury. Therefore, the total number of Ordinary Shares and voting rights in the Company will be 1,068,492,227. 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 to their interest in, the share capital of the Company.

 

Strategic Mineral's Managing Director, John Peters, said:

 

The Company's purchase of shares in Redmoor, and the issue of the Company's shares to New Age Exploration, completes the first component of the Company's plan to acquire a 50% interest in Redmoor. The remainder of the acquisition will be completed through the option it now has, until 31 December 2016, to subscribe for another 278,864 Redmoor shares. 

 

The Company's June raising, and the feedback its Director's received in relation to the project and the ability of the Company to fund this prior to the maturity of the option, provide the Board with confidence that it can complete the 50% acquisition prior to 31 December 2016. Further, the Board is confident it can, in agreement with NAE, finalise and commence the land access and approvals to commence drilling in the first half of 2017. 

 

For further information, please contact:

 

Strategic Minerals plc

John Peters

Managing Director

 

+61 (0) 414 727 965

Allenby Capital Limited

Nominated Adviser and Joint Broker

John Depasquale

Jeremy Porter

James Reeve

 

+44 (0)20 3328 5656

Cornhill Capital Limited

Joint Broker

James Sheehan

Colin Rowbury

 

+44 (0)20 3700 2516

Yellow Jersey PR

Financial PR

Dominic Barretto

Alistair de Kare-Silver

+44 (0) 7825 916 715 

 

 

Notes to Editors

 

Strategic Minerals Plc is an AIM-quoted, diversified mineral development and production company with projects in the United States of America and Australia. The Company is focused on acquiring and developing cash generative, high quality projects that meet local market demand for commodities and utilising this cash flow to undertake value added exploration. 

 

In September 2011, Strategic Minerals purchased its first cash generating asset; the Cobre magnetite tailings dam project in New Mexico, USA which it brought into production in 2012 and which continues to provide a revenue stream for the Company. The portfolio was expanded in January 2016 with the acquisition of shares in Central Australian Rare Earths Pty Ltd, which holds tenements in Western Australia and the Northern Territory that are prospective for nickel sulphides, platinum and rare earths. Strategic Minerals has completed drill-testing of the highest priority nickel sulphide targets within the tenements, having successfully intersected nickel sulphide. In May 2016, the Company also entered arrangements to buy up to 50% of the Redmoor tin/tungsten exploration project in Cornwall, UK.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCFMGMNNMMGVZG
UK 100

Latest directors dealings