BMR Mining PLC Placing to raise GBP 750,000 (7829D)
October 28 2015 - 2:00PM
UK Regulatory
TIDMBMR
RNS Number : 7829D
BMR Mining PLC
28 October 2015
BMR Mining PLC
("BMR" or the "Company")
Placing to raise GBP 750,000
BMR Mining PLC, the Zambian-focused mineral processing business,
is pleased to announce that it has raised GBP 750,000 before
expenses, by way of a placing of 18,750,000 new ordinary shares of
GBP0.01 (1p) each in the capital of the Company (the "Placing
Shares") at 4.0p per share. Each placee will also receive for each
share subscribed a warrant to subscribe for a further new ordinary
share at 7.0p per share in the 42 days following publication of
BMR's results for the year ending 30 June 2016.
Furthermore, the Board confirms that 66.67% of the placing,
representing 12,500,000 new shares or 8.29% of the enlarged issued
share capital, has been subscribed by Lexinta Group, an asset
management firm headquartered in Switzerland.
The Board has refined BMR's strategy such that it now intends to
generate sufficient revenue from tailings processed by the pilot
plant to finance the proposed main plant at Kabwe in Zambia. Whilst
the final costings of the plant have yet to be completed, it is
intended that it will be engineered to run at 5 tonnes per hour and
to produce an expanded range of higher grade produce to enhance
revenue. The net proceeds of the placing will therefore be used to
part finance the pilot plant and provide working capital as BMR
progresses its plans to commence processing.
The Board is pleased to report that BMR has reduced its
normalised monthly central costs from approximately GBP250,000 in
the year ended 30 June 2014, to approximately GBP110,000 currently,
and that such costs are projected to fall to approximately
GBP65,000 by January 2016 once BMR has exited from the lease of its
former head office in Derby Street, London W1J 7AD.
Application will be made to the London Stock Exchange for the
Placing Shares to be admitted to trading on AIM and it is expected
that admission will become effective and trading will commence on 3
November 2015. The Placing Shares will rank pari passu with the
existing ordinary shares of the Company.
Following the admission of the Placing Shares to trading on AIM,
the Company will have a total of 150,715,452 shares in issue. This
figure may be used by shareholders 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
Company under the FCA's Disclosure and Transparency Rules.
Alex Borrelli, Chairman, commented: "This placing provides BMR
with the necessary funds to commence revenue generating pilot plant
operations at Kabwe. Our objective is to utilise these revenues to
finance the proposed main plant.
As I have previously committed to shareholders, we will make a
similar amount of new shares available to shareholders on the same
terms, including warrants, in the near future."
Bismark Badilla, CEO and Chairman of the Lexinta Group,
commented: "We are delighted to be the principal investor in BMR
Mining's placing and to contribute as corporate advisors,
especially at this time as the Company embarks on this
direction."
Ends
For further information:
BMR Mining PLC 020 7734 6252
Alex Borrelli, CEO and Chairman
WH Ireland Limited 020 7220 1666
Chris Fielding, Head of Corporate Finance
This information is provided by RNS
The company news service from the London Stock Exchange
END
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