TIDMALO
RNS Number : 4023Y
Alecto Minerals PLC
17 May 2016
Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector:
Mining
17 May 2016
Alecto Minerals plc ('Alecto' or the 'Company')
Placing to Raise GBP665,000 gross
Alecto Minerals plc (AIM: ALO), the Africa-focused gold and base
metal exploration and development company, is pleased to announce
that it has raised GBP665,000 (before expenses) by way of a placing
of 831,250,000 new ordinary shares of 0.01 pence each in the
capital of the Company (the 'Placing Shares') at a price of 0.08
pence per Placing Share (the 'Placing Price'), with new and
existing shareholders (the 'Placing').
The net proceeds of the Placing, which was fully subscribed,
will provide the Company with additional working capital as it
continues to make rapid progress towards its goal of bringing the
400,000 tonnes per annum open-pit Matala Gold Project in
south-central Zambia ('Matala' or the 'Project'), into low-cost
production in the near to mid-term.
The Placing Shares will represent, in aggregate, approximately
18.64 per cent. of the Company's enlarged issued share capital.
The Company is currently in a close period pursuant to the AIM
Rules for Companies, due to the forthcoming publication of the
Company's audited accounts for the year ended 31 December 2015,
thereby preventing the Directors from participating in the Placing.
As soon as the Company is out of a close period, which is expected
to occur shortly, Alecto's CEO, Mark Jones, intends to subscribe
for 12,500,000 new Ordinary Shares, amounting to GBP10,000 at the
Placing Price. A further announcement will be made as and when
appropriate.
Alecto's CEO, Mark Jones, commented:
"We are delighted to have received such strong support and
positive interest in the fundraising. The Board is extremely
mindful of dilution, so it was unfortunate that, despite strong
news flow following our acquisition of Matala, including the
announcement of two joint ventures, that there has not been greater
traction in the share price, allowing us to raise funds at a
premium to our last fundraise in November 2015.
"However, the Board is acutely aware of the importance of
maintaining momentum on the ground in Zambia, to build on the
excellent start we have already made. There is potentially still
huge upside for stakeholders if we get this right.
"With this in mind, we will continue to focus and deliver on our
strategy, which I believe will translate into share price
appreciation moving forward. We look forward to keeping
shareholders updated as we progress the development of Matala and
as our recently announced joint ventures with Randgold Resources
and Cora Gold begin to produce results."
Following the Company's acquisition of the historical Matala and
Dunrobin gold mines in Zambia, announced in November 2015, Alecto
has made rapid progress towards their development. Having delivered
a Feasibility Study for Matala, ahead of schedule, for a mine plan
of 4 years 8 months and modelled at a $1,200/oz gold price, Alecto
went on to sign agreements with Yantai Xinhai Machinery Co. Ltd
('Xinhai') and PenMin (Pty) Ltd with respect to the mine's
construction and financing. On 13 April 2016, Alecto announced that
Xinhai had made a commitment to arranging vendor financing to cover
the plant and infrastructure costs and further detailed planning is
currently ongoing. The net proceeds of the Placing will enable
Alecto to continue to develop Matala, whilst also ensuring that
progress continues across its wider portfolio.
In Burkina Faso, the Company has recently had its exploration
permits renewed at the Kerboulé Gold Project, which has an
independent (non-JORC) in-situ gold resource estimate of 6.2Mt, at
1.16g/t Au, for 230,758 oz gold, and joint venture discussions
regarding this asset are currently in progress.
In Mali, the Company continues to hold 100 per cent. of both the
Kossanto East Gold Project, which has a JORC inferred resource
estimate of 247,000 oz gold, and the Kossanto West Gold Project
('Kossanto West'), which is the focus of a joint venture agreement
with Randgold Resources. As announced last week, the Karan Gold
Project in Mali ('Karan') is now the subject of a Joint Venture
with Cora Gold Limited. The Company's commitment to the joint
venture model for its early stage exploration portfolio means that
exploration work is once again underway, at both Karan and Kossanto
West, without Alecto incurring further funding expense.
Application for trading on AIM and Total Voting Rights
Application has been made to the London Stock Exchange plc for
the Placing Shares to be admitted to trading on AIM ('Admission').
Admission is expected to become effective and dealings in the
Placing Shares commence at 8.00 a.m. on 1 June 2016. On Admission,
the Company will have in issue 4,459,814,850 ordinary shares.
The Placing Shares will be fully paid and will rank pari passu
in all respects with the Company's existing ordinary shares.
The Company does not currently hold any ordinary shares in
treasury. Accordingly, the above 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 in their interest in, the share capital of the
Company under the Financial Conduct Authority's Disclosure and
Transparency Rules.
**ENDS**
For further information please visit www.alectominerals.com,
follow us on Twitter @AlectoMinerals, or contact:
Alecto Minerals plc Tel: +44 (0)20 7499 5881
Mark Jones
Strand Hanson Limited Tel: +44 (0)20 7409 3494
Andrew Emmott
Matthew Chandler
James Dance
Beaufort Securities Limited Tel: +44 (0)20 7382 8300
Jon Belliss
St Brides Partners Limited Tel: +44 (0)20 7236 1177
Elisabeth Cowell
Charlotte Heap
Notes to editors:
Alecto Minerals plc is an African focused, gold and base metal
exploration and development company quoted on AIM with gold
exploration projects in Zambia, Mali, Burkina Faso and
Mauritania.
In Zambia, the historical Matala and Dunrobin gold mines have,
in aggregate, a 760,000 oz Au JORC Code compliant resource estimate
in the Measured, Indicated and Inferred categories at an average
grade of 2.3g/t Au. The Company is focused on bringing Matala into
low-cost production in the near to mid-term.
In Mali, the Kossanto East project has an inferred JORC Code
compliant resource estimate of 6.72Mt grading at 1.14g/t Au for an
aggregate of 247,000 oz Au with a cut-off grade of 0.5g/t Au. This
is under a co-operation agreement with ASX listed Desert Gold Inc.
to evaluate the potential to jointly develop each company's
neighbouring projects into production. The Kossanto West Project is
under a joint venture with Randgold Resources Limited. In addition,
the Company owns the 250 sq. km. Karan gold project in southern
Mali which is under joint venture with Cora Gold Limited.
Alecto also owns the Kerboulé Project, located in the highly
prospective Birrimian-age Djibo gold belt in northern Burkina Faso,
as well as the wholly owned Wad Amour IOCG Project in Mauritania
which is at an exploration stage.
Accordingly, the Company has a strong, diversified project
portfolio with exciting exploration upside potential.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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