TIDMALBA
RNS Number : 2182Y
Alba Mineral Resources PLC
04 December 2017
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Alba Mineral Resources plc
("Alba" or the "Company")
Alba Acquires 49% of Clogau Gold Mine in Wales
Alba Mineral Resources plc (AIM: ALBA) is pleased to announce
that it has acquired a 49 per cent interest in Gold Mines of Wales
Limited ("GMOW"), the ultimate owner of the Clogau Gold Project
situated within the Dolgellau Gold Belt in Wales, United Kingdom
(the "Project"). The Project comprises the Clogau Gold Mine and
includes a large number of highly prospective gold targets and
former gold workings within a total option area of 106.94
km(2).
HIGHLIGHTS
-- Alba acquires 49% of the Clogau Gold Project in Wales for
83,333,333 Alba shares (valuing the total consideration at
approximately GBP316,667 based on the Company's closing share price
on 1 December 2017)
-- The Dolgellau Gold Belt has produced about 131,000 oz of
gold, by far the most of any region within the United Kingdom. Most
of this gold (81,000 oz) has been exploited from the historic
Clogau-St David's mine that lies within the Project area ("Clogau
Gold Mine").
-- Alba's review of the Project concludes that there is a high
potential to find unworked veins containing gold mineralisation of
similar grade to that known in historic mines in the area.
-- Alba will use its expertise as an operator of mining projects
to assist GMOW to fast-track development of the Project.
-- The focus will be on bringing the Clogau Gold Mine back into
production and also making a push into the regional exploration of
the wider Project area.
-- The Clogau Gold Project is highly complementary to Alba's
suite of assets, and bolsters Alba's focus on the UK onshore
natural resources sector (Horse Hill, Brockham).
-- Welsh Gold bullion is potentially worth between three and
five times the spot gold price, which further enhances the
attractiveness of the Project.
-- The British Royal Family has been using Welsh Gold to create
their wedding rings for about a century.
George Frangeskides, Alba's Executive Chairman, commented:
"We are delighted to announce that we have secured a significant
stake in the Clogau Gold Project. The Project fits squarely within
Alba's strategy to identify projects which include former working
mines which have both near-mine expansion potential but also have
significant exploration upside in the wider project area."
"The opportunity presented by this Project is pretty unique -
high grade gold in the heart of the United Kingdom, the fact that
Welsh gold attracts a significant premium over spot rates, the
historic connections of Welsh gold with the heritage of the United
Kingdom, the potential for finding more gold in the vastly
under-explored exploration ground - all these are factors which
together make a strong case for investment."
"The Clogau Gold Mine is also complementary to our existing UK
onshore assets, being our oil and gas interests at Horse Hill and
Brockham in the Weald Basin in Surrey. In these times of great
change for the United Kingdom, Alba is championing our domestic
natural resources industry and channelling investment back into UK
PLC."
Background
From the early 1800s to the late 1990s the Dolgellau Gold Belt
produced about 131,000 oz of gold, by far the most of any region
within the United Kingdom. Gold is principally derived from high
grade, narrow vein mesothermal deposits. In turn, most of this gold
(81,000 oz) has been exploited from the historic Clogau-St David's
mine that lies within the Project area (the "Clogau Gold Mine").
Gold production records are known from 12 mines, but there are over
300 smaller workings and trials in the area. Despite its high
prospectivity, the area is considered to be underexplored and most
of it has yet to be subject to sustained modern exploration at a
deposit scale.
A unique feature of the Gold Belt is that gold has been used to
produce Welsh Gold jewellery. The British Royal Family has been
using Welsh Gold to create their wedding rings since 1923 and,
since 1992, jewellery containing Welsh Gold has been produced
commercially. Welsh Gold bullion is potentially worth between three
and five times the spot gold price which further enhances the
attractiveness of exploration in this area.
Very little contemporary gold-focused exploration has been
undertaken in the region. The most recent work outside of
individual historic mine sites was Government-funded reconnaissance
programmes in the 1970s. Nonetheless, these programmes provided
useful data to help identify new exploration targets. Alba has
obtained and reviewed a comprehensive amount of regional
geological, geochemical and geophysical data. Aside from the data
made available by GMOW, there is also a significant volume of data
and reports on the Dolgellau Gold Belt and the Clogau Gold Mine
that is already in the public domain.
Based on the outcome of this review, the Company has concluded
that there is a high potential within the Project area to find
unworked veins containing gold mineralisation of similar style and
grade to that known in historic mines in the area. This includes
near-mine exploration targets and new regional targets. As such,
this has led the Company to agree a strategy with GMOW to target
both the work needed to bring the former Clogau Gold Mine back into
production while at the same time making a push into the regional
exploration of the wider Project area.
The Project is underpinned by an Option Agreement between GMOW
Operations, Her Majesty The Queen and The Crown Estate
Commissioners by which agreement GMOW Operations was granted the
right to prospect and mine the Project area subject to the terms
and conditions set out in the agreement. The Option Agreement was
renewed on 14th August 2015 and the boundaries encompass an area of
106.94 km(2), split between three sub-areas. The Option is valid
for a period of six years from the commencement date, which is
stated as 10th February 2015, and is subject to two yearly progress
reviews by The Crown. The last review was successfully concluded in
Q3 2017.
Work Programme
Alba intends to assist GMOW to fast-track the redevelopment of
the Clogau Gold Mine. Notably this will include preparation of a
planning application to be submitted for the re-opening of the
mine. Initially, Alba plans to undertake detailed underground
structural mapping and sampling to modernise the geological
interpretation of the Project.
Thereafter, the Project partners intend to consider the
commissioning of an airborne magnetic and electro-magnetic (EM)
survey over the most prospective areas of the Project, being the
near-mine and other regional target areas. The objective will be to
detect deeper targets at and around the Clogau Gold Mine itself
which have never been drilled or mined, as well to identify
significant structures within the wider exploration ground for
follow-up drilling.
In conjunction with GMOW, Alba will be inviting leading UK based
mineral consulting groups to tender to work on this unique
project.
Acquisition Terms
Alba has agreed to issue 83,333,333 Alba fully paid ordinary
shares to Primorus Investments Plc for a 49 per cent shareholding
in Gold Mines of Wales Limited, which is the ultimate parent
company of GMOW (Operations) Limited, the owner of the Project. The
consideration is valued at approximately GBP316,667 (based on the
Company's closing share price on 1 December 2017). All Alba
consideration shares issued to the vendor shall be subject to
orderly marketing restrictions for a period of six months.
Alba shall prepare all budgets and work programmes for the
Project, which shall be agreed upon jointly by the shareholders. If
either shareholder does not fund its proportionate share of the
programme, it shall be diluted pro rata in accordance with an
industry standard dilution formula.
Admission to AIM
Application will be made for the 83,333,333 new ordinary Alba
shares to be admitted to trading on AIM ("Admission"). It is
expected that Admission will become effective at 8.00 a.m. on 8
December 2017. The new ordinary shares will be issued credited as
fully paid and will rank in full for all dividends and other
distributions declared, made or paid after Admission and will
otherwise rank on Admission pari passu in all respects with the
existing ordinary shares.
Total Voting Rights
Following Admission, the total number of ordinary shares in
issue will be 2,331,948,268. The Company does not hold any ordinary
shares in treasury. Therefore, the total number of ordinary shares
with voting rights will be 2,331,948,268. 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 under the Financial Conduct
Authority's Disclosure and Transparency Rules.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 7264 4366
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray +44 20 7213 0880
First Equity Limited (Broker)
Jason Robertson +44 20 7374 2212
Competent Person Declaration
The information in this release that relates to Exploration
Results has been reviewed by Mr Howard Baker, Technical Director of
Alba Mineral Resources Plc. Mr Baker is a Chartered Professional
Fellow of the Australasian Institute of Mining and Metallurgy
(Membership Number 224239) and a Competent Person as defined by the
rules of International Reporting Codes that are aligned with
CRIRSCO.
Howard Baker has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and
to the activity being undertaken to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration targets, Exploration Results, Mineral
Resources and Ore Reserves', also known as the JORC Code. The JORC
code is a national reporting organisation that is aligned with
CRIRSCO. Howard Baker consents to the inclusion in the announcement
of the matters based on his information in the form and context in
which they appear.
Alba's Project Portfolio
Oil & Gas
Horse Hill (Oil & Gas, UK): Alba holds a 18.1 per cent
interest in Horse Hill Developments Limited, the company which has
a 65 per cent participating interest and operatorship of the Horse
Hill oil and gas project (licences PEDL 137 and PEDL 246) in the UK
Weald Basin.
Brockham (Oil & Gas, UK): Alba has a direct 5 per cent
interest in Production Licence 235, which comprises the previously
producing onshore Brockham Oil Field.
Mining
Amitsoq (Graphite, Greenland): Alba owns a 90 per cent interest
in the Amitsoq Graphite Project in Southern Greenland and has an
option over the remaining 10 per cent.
Black Sands (Ilmenite, Greenland): Alba owns 100 per cent of
mineral exploration licences 2017/29 and 2017/39 in the Thule
region, north-west Greenland.
Melville Bay (Iron Ore, Greenland): Alba is entitled to a 51 per
cent interest in mineral exploration licence 2017/41 in Melville
Bay, north-west Greenland. The licence area benefits from an
existing inferred JORC resource of 67 Mt @ 31.4% Fe.
Inglefield Land (Copper, Cobalt, Gold): Alba owns 100 per cent
of mineral exploration licence 2017/40 in north-west Greenland.
Limerick (Base Metals, Ireland): Alba has 100 per cent of the
Limerick base metal project in the Republic of Ireland.
El Mreiti (Uranium, Mauritania): Alba has applied for the
reissue of a uranium permit in northern Mauritania, centred on
known uranium-bearing showings.
Web: www.albamineralresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
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