TIDMALBA
RNS Number : 4095Z
Alba Mineral Resources PLC
26 May 2016
26 May 2016
Alba Mineral Resources plc
("Alba" or the "Company")
Alba exercises option to earn into Amitsoq graphite project in
southern Greenland
Alba Mineral Resources plc (AIM: ALBA) is pleased to announce
that it has exercised its option to earn into the Amitsoq graphite
project in southern Greenland.
On 6 October 2015 the Company announced that it had signed an
agreement with Artemis Resources Ltd ("Artemis"), an Australian
Securities Exchange quoted company (ASX: ARV), which granted to
Alba an option to earn up to 70 per cent of a graphite project (the
"Project") near Nanortalik in southern Greenland ("Agreement"). The
licence area of the Project comprises the historic Amitsoq graphite
mine and is prospective not only for graphite but also for gold,
copper, nickel and platinum group elements (PGEs).
A renegotiation of the earn-in terms with Artemis has been
completed as part of Alba's election to earn-in.
George Frangeskides, who is Executive Chairman of Alba, is also
non-executive Chairman of Artemis.
Work carried out to date at Amitsoq
Since entering into the Agreement the Company has undertaken the
following work, as announced to the market on 30 November 2015 and
4 February 2016:
-- Test work carried out on samples collected during a field
expedition have returned excellent results, showing graphitic
carbon contents varying from 20.5% to 35.4%, with an overall mean
graphitic carbon content of 28.7%, significantly higher than the
previously reported historic average grade of 20% and higher than
most reported advanced graphite projects globally.
-- Measurements of the discrete graphite flakes suggests that
the mean flake-size varies from 300-500 um, 'Jumbo' to 180-300 um
'Large', however the single most common flake size is in fact
'Super-Jumbo' (>500 um). The larger flake sizes attract a
premium in the market.
-- A remote sensing study was commissioned, the results of which
were highly encouraging, highlighting several anomalies for a
variety of commodities. Numerous and continuous graphitic horizons
were suggested along strike and proximal to the Amitsoq graphite
mine.
-- Additional FeO anomalies are interpreted to be favourable
targets for platinum group metals, orogenic lode gold and intrusion
related copper-zinc mineralization.
-- Anomalies identified with geology similar to economic gold
mineralization at the nearby Nalunaq gold mine (circa 340,000
ounces of gold produced to date).
Election to earn-in and modified earn-in terms
Given these highly encouraging results to date, Alba has decided
to exercise its option to earn an initial interest in the Project.
At the same time, Alba has negotiated certain changes to the
earn-in terms with Artemis, as follows:
(a) Having elected to earn into the Project, the Company will
earn a 49 per cent interest in the Project through the issue of
GBP100,000 of Alba shares to Artemis (calculated at a 20 trading
day volume-weighted average price ("VWAP")) and by funding a
minimum of a further DKK 1,476,740 (approximately GBP146,000) of
exploration costs on the Project by 31 December 2016.
Under the original terms agreed with Artemis, for the payment of
GBP50,000 in Alba shares and the funding of the same amount of
expenditure (DKK 1,476,740), Alba would have been entitled to earn
only a 25 per cent interest in the Project. This amendment to the
earn in terms will entitle the Company to earn a 49 per cent
interest in the Project 12 months earlier than would have been the
case under the original terms. The additional GBP50,000 in Alba
shares would still have been payable under the original terms by 31
March 2017 should Alba have decided to continue earning into the
Project, so Alba has simply agreed to pay that second GBP50,000 in
shares early in order to secure a significant 49 per cent interest
in the Project this year.
(b) To maintain its 49 per cent interest, Alba will still be
required to fund a further DKK 1,476,740 (approximately GBP146,000)
of exploration costs on the Project by 31 December 2017, in
accordance with the original terms. If it elects not to spend that
amount, then Alba's interest in the Project shall be reduced from
49% to 40%, meaning that Alba will nonetheless retain a significant
economic interest in the Project. If Alba does elect to spend that
further amount by 31 December 2017 but then fails to do so, its
interest in the Project shall be reduced from 49% to no less than
40% on a pro rata basis in accordance with the amount of the
underspend.
(c) All other principal terms of the original Agreement remain
unchanged, so Alba will still be entitled to earn a further, up to
70 per cent interest in the Project by meeting the 2017 and 2018
minimum expenditure commitments on the Project as determined by the
Greenlandic mining regulations.
Future work in 2016
Having secured its interest in this highly prospective project,
the Alba Board is in the process of refining its work programme in
Greenland for the coming months, which shall be the subject of a
further announcement in due course.
Mike Nott, Alba's CEO, commented:
"Alba's work so far at Amitsoq has given us great encouragement
to continue work on this highly attractive graphite project. Having
now secured improved terms, we intend to push forward this year to
undertake significant work to enhance both our understanding of the
Project and the value of our investment. Future demand for graphite
continues to look strong due to its long-standing industrial and
commercial uses, including its role as a key component in
lithium-ion batteries."
Admission of new ordinary shares to AIM
In accordance with the above terms, 33,852,403 fully paid
ordinary shares in Alba (being GBP100,000 in Alba shares calculated
at a 20 trading day volume-weighted average price) will today be
issued to Artemis. Application will be made for the new ordinary
shares to be admitted to trading on AIM ("Admission"). It is
expected that Admission will become effective at 8.00 a.m. on 2
June 2016. 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 1,320,642,334. The Company does not hold any ordinary
shares in treasury. Therefore, the total number of ordinary shares
with voting rights will be 1,320,642,334. 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.
For further information please contact:
Alba Mineral Resources plc
Michael Nott, CEO +44 20 3696 4616
Cairn Financial Advisers LLP
James Caithie/Liam Murray +44 20 7148 7900
Dowgate Capital Stockbrokers
Limited
Jason Robertson / Neil Badger +44 1293 517744
About Alba
Alba holds a 15 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. Alba also has an
option to farm into 5% of Production Licence 235, which comprises
the producing onshore Brockham Oil Field.
Alba has the right to earn up to 70 per cent of the Amitsoq
Graphite Project in Southern Greenland. In addition, the Company
holds a base metal licence in the Republic of Ireland, and has
applied for the reissue of a uranium permit in northern Mauritania.
The new Mauritanian permit will be on a reduced area, and is
centred on known uranium-bearing showings.
Alba continues actively to review and discuss other project
opportunities which have value-enhancing potential for the Company
whether by acquisition, farm in or joint venture in a range of
jurisdictions around the world.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCPGUMAAUPQUBQ
(END) Dow Jones Newswires
May 26, 2016 05:59 ET (09:59 GMT)
Alba Mineral Resources (LSE:ALBA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Alba Mineral Resources (LSE:ALBA)
Historical Stock Chart
From Apr 2023 to Apr 2024