TIDMALBA
RNS Number : 9231N
Alba Mineral Resources PLC
01 November 2016
1 November 2016
Alba Mineral Resources plc
("Alba" or the "Company")
Alba conditional agreement to acquire a majority interest in
Amitsoq
Alba Mineral Resources plc (AIM:ALBA), the UK-based exploration
company, is pleased to announce that it has now earned the right to
a 49 per cent interest in the Amitsoq graphite project in Southern
Greenland (the "Project") pursuant to its existing farm-in
agreement in relation to the Project, details of which were
announced on 6 October 2015.
This follows the extensive exploration programme undertaken this
year encompassing a bulk sampling programme and airborne
electromagnetic survey.
Alba has further agreed, subject to regulatory approvals from
the Greenlandic authorities, to acquire a further 41 per cent
interest in the Project from Artemis Graphite Pty Limited, a
subsidiary of Artemis Resources Limited (together "Artemis") on the
following principal terms set out in a share sale and purchase
agreement:
(a) Total consideration payable of GBP150,000, of which a
GBP60,000 deposit shall be payable (GBP40,000 in cash and GBP20,000
in Alba shares at a 20 trading day volume weighted average price
("VWAP")).
(b) Completion of the acquisition is conditional on the
obtaining of Greenlandic Governmental approvals to the transfer of
the interest and Alba consequently holding a total 90 per cent
interest in the Project by the transfer of shares in the licence
holder, Obsidian Mining Limited.
(c) On Completion Alba will pay the remaining GBP90,000 of the
consideration, in cash or Alba shares (at a 20 trading day VWAP) at
Alba's election but with a minimum of 50 per cent in cash unless
otherwise agreed.
(d) As from Completion, Alba will also take over Artemis's
rights and obligations in respect of the existing put and call
option over the 10 per cent free carried interest held by a
minority shareholder in the Project.
(e) Pending Completion, Alba shall continue to act as the
operator and manager of the Project.
(f) The current farm-in agreement is terminated and superseded
by the share sale and purchase agreement.
(g) If for any reason the necessary Greenlandic regulatory
approvals are not forthcoming, Alba shall be entitled to be repaid
GBP50,000 of the initial deposit paid, in cash or Artemis shares at
the latter's election.
Admission of new ordinary shares to AIM
In accordance with the above terms, 6,493,507 fully paid
ordinary shares in Alba (being GBP20,000 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 4
November 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 1,817,071,600. The Company does not hold any ordinary
shares in treasury. Therefore, the total number of ordinary shares
with voting rights will be 1,817,071,600. 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.
George Frangeskides, Alba Chairman, is also a director of
Artemis Resources Limited.
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
Michael Nott, CEO +44 20 7264 4366
Cairn Financial Advisers
LLP
James Caithie / Liam Murray +44 20 7213 0880
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 is also earning
a 5% interest in Production Licence 235, which comprises the
producing onshore Brockham Oil Field.
Alba has earned the right to a 49 per cent interest in the
Amitsoq Graphite Project in Southern Greenland and has agreed to
acquire a further 41 per cent interest in the Project, subject to
Greenlandic regulatory approvals, as set out in the above
announcement.
In addition, the Company has recently renewed its Limerick 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 numerous 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
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