TIDMAXM

RNS Number : 8939Y

Alexander Mining PLC

20 May 2016

20 May 2016

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

Alexander Mining plc

("Alexander" or the "Company")

Placing to Raise GBP500,000

The Company is pleased to announce that it has raised GBP500,000 (the "Placing") via Cornhill Capital Limited, acting as placing agent, through the issue of 500,000,000 new ordinary shares of 0.1p each (the "Placing Shares") at a price of 0.1p per share (the "Placing Price") to new and existing shareholders. The net proceeds of the Placing will be used for general working capital purposes.

The Board is aware of the impact of dilution of the Placing on existing shareholders as the Placing Shares will represent approximately 58% per cent. of the issued share capital of the Company as enlarged by the Placing Shares (the "Enlarged Share Capital"). However, the Board believes that the costs of an open offer or rights issue are such that it is not practicable or cost effective and cannot be achieved in the timeframe required.

In order to provide existing shareholders with some ability to subscribe should they so choose on similar terms to the Placing, the Board proposes subject to regulatory prohibitions relating to marketing securities in certain jurisdictions, to issue new warrants ("Warrants") to existing shareholders on the record date ("Qualifying Shareholders") on a pro rata basis of one Warrant for every four Ordinary Shares ("Qualifying Shares") held (the "Warrant Bonus Issue"). The Board believes that the Warrant Bonus Issue should partially alleviate the impact of dilution on Qualifying Shareholders. Further terms of the proposed Warrant Bonus Issue are set out below.

Martin Rosser, Chief Executive Officer said: "We are delighted with the outcome of the Placing and thank the placees for their support. Importantly, we can now concentrate the Company's efforts on the commercialisation of its processing technology. With the proceeds from the Placing, potential cash proceeds from the Warrant Bonus Issue exercise and also potential revenue from the commercialisation of our proprietary leaching technologies, the Company should have adequate working capital for the next 12 months. We remain confident about the prospects for our technologies; however, given the background of the Company's directors and senior employees, we are also reviewing several complementary opportunities of interest in the mining sector."

Warrant Bonus Details

The Board proposes that the Warrants will only be issued to the existing shareholders of the Company. Accordingly, the record date for the Warrant Bonus Issue is 4.30 p.m. on 24 May 2016.

One Warrant is proposed to be issued for every four Qualifying Shares held by eligible shareholders on the record date of the Bonus Issue (subject to certain regulatory restrictions referred to below). Based on the current issued share capital of 361,910,288 Ordinary Shares, the Company would therefore issue a maximum of 90,477,572 Warrants. The Warrants would represent approximately 10.5 per cent. of the Enlarged Issued Share Capital prior to exercise.

The Warrants, which will not be traded on AIM or any other public markets, will be exercisable in the periods of 15 working days ending on the following three dates: 20 July 2016; 20 October 2016; and 20 January 2017 (the "Final Exercise Date"). If any of the Warrants remain unexercised on the Final Exercise Date, they will expire. The exercise price of the Warrants will be 0.1p, 0.15p and 0.2p per new Ordinary Share, on each of the exercise dates respectively.

The instrument constituting the Warrants is expected to contain other provisions typically found in such instruments, including those relating to the adjustment of the terms of the Warrants, protections for holders of Warrants and the procedures for the modification of the rights of the Warrants. Following the issue of the warrants, a copy of the instrument constituting them will be available to download from the Investors section of the Company's website: www.alexandermining.com.

The Warrants will be subject to eligibility requirements on issue. Such requirements result from pre-existing securities law restrictions applicable to certain jurisdictions such as the United States of America. The Warrant Bonus Issue will not be extended to, and the Warrants will not be issued to and may not subsequently be exercisable by, shareholders in a restricted jurisdiction. Notwithstanding the above, the Company will reserve the right to permit any shareholder to take up Warrants under the Warrant Bonus Issue if the Company, in its sole and absolute discretion, is satisfied that the transaction in question is exempt from, or not subject to, the applicable restrictive legislation or regulations.

Qualifying Shareholders who are in any doubt about the implications of the Bonus Issue on their personal tax position should consult their professional adviser.

Placing Details

The Placing Shares will rank pari passu with the existing ordinary shares and an application has been made to the London Stock Exchange for admission of the Placing Shares to trading on AIM ("Admission"). Admission is expected to occur at 8.00 a.m. on 25 May 2016.

Alexander has issued a total of 50,000,000 warrants at an exercise price of 0.1p to Cornhill Capital Limited ("the Broker Warrants") as part of its remuneration for effecting the Placing. The Warrants have a five year exercise period.

Total Voting Rights

Following Admission, the Company will have a total of 861,910,288 ordinary shares in issue with each share carrying the right to one vote. The Company does not hold any shares in treasury. Therefore, the total number of ordinary shares with voting rights will be 861,910,288. 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 in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Enquiries:

 
 Alexander Mining plc 
 
 Martin Rosser                       Matt Sutcliffe 
  Chief Executive Officer             Executive Chairman 
  Mobile: +44 (0) 7770 865            Mobile: +44 (0) 7887 930 
  341                                 758 
 
 Tel: +44 (0) 20 7078 9566 
  Email: mail@alexandermining.com 
  Website: www.alexandermining.com 
 
 Northland Capital Partners 
  Limited 
 
  Matthew Johnson / Gerry 
  Beaney 
  +44 (0) 20 3861 6625 
  (Corporate Finance) 
  John Howes / Abigail Wayne 
  (Corporate Broking)

This information is provided by RNS

The company news service from the London Stock Exchange

END

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