TIDMEUZ
RNS Number : 5116W
Europa Metals Ltd
19 August 2020
Not for distribution, in whole or in part, directly or
indirectly, to United States or Australian newswire services or
dissemination in, into or from the United States (including its
territories and possessions, any State of the United States and the
District of Columbia) or Australia or any jurisdiction where to do
so would constitute a violation of the relevant laws or regulations
of such jurisdiction
19 August 2020
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM, AltX:
EUZ)
Equity Fundraising of GBP2,000,000
Europa Metals, the European focused lead-zinc and silver
developer, is pleased to announce that it has raised GBP2,000,000
(before expenses) (the "Fundraising") via the issue of, in
aggregate, 15,686,274 new ordinary shares of no par value each in
the capital of the Company ("Ordinary Shares") (the "Fundraising
Shares") at an issue price of 12.75 pence per share (the "Issue
Price") to certain existing and new investors.
The Fundraising comprises a placing of 15,529,412 new Ordinary
Shares, arranged by Turner Pope Investments (TPI) Limited ("Turner
Pope"), the Company's broker, as agent of the Company, and a
subscription for a further 156,862 new Ordinary Shares by certain
Directors of the Company.
The Fundraising is conditional on admission of the Fundraising
Shares to trading on AIM ("Admission") and, following Admission,
the Fundraising Shares will represent, in aggregate, approximately
31.9 per cent. of the Company's enlarged issued share capital.
The Fundraising Shares will be issued fully paid and will rank
pari passu in all respects with the Company's existing Ordinary
Shares. The Issue Price represents a discount of approximately 22.7
per cent. to the closing mid-market price of an Ordinary Share on
AIM of 16.50 pence on 18 August 2020 , being the last business day
prior to the date of this announcement.
Use of Proceeds
The net proceeds from the Fundraising will primarily be utilised
towards completion of certain key components of a Pre-Feasibility
Study ("PFS") in respect of the Company's wholly owned Toral
lead-zinc-silver project located in the Castilla y León region,
northern Spain ("Toral" or the "Toral Project"), as well as for the
Company's general working capital requirements. The PFS workstreams
concerned will include:
-- Hydrogeological studies to ascertain sub surface water conditions;
-- Drilling targeting increases in the confidence level of the
overall mineable resource for Toral; and
-- Further metallurgical, geotechnical, waste management and environmental work components.
The Board of Europa Metals believes that completion of the above
PFS components will further demonstrate the viability of the Toral
Project by advancing the Company's understanding of metallurgy and
hydrogeological conditions, defining the parameters for waste
management and environmental considerations, as well as potentially
upgrading areas of the current resource into higher
categorisations.
As previously announced, the Company has commissioned ongoing
metallurgical work and ore sorting analysis in respect of Toral
(being carried out by Wardell Armstrong International and Bara
Consulting respectively) and will thereafter seek to obtain updated
preliminary economic parameters for the Toral Project from Bara
Consulting, taking into account the significant work completed and
data obtained since the 2018 Scoping Study. The Company is also
awaiting the renewal of its Investigation Permit for a further
three-year exploration term and is in the process of seeking to
secure certain EU/regional grant monies.
Directors' Participation
The Company is pleased to announce that both Laurence Read, CEO,
and Myles Campion, Executive Chairman, have participated in the
Fundraising by way of subscriptions for 78,431 new Ordinary Shares
and 78,431 new Ordinary Shares at the Issue Price respectively. On
Admission, the resultant shareholdings of Messrs Read and Campion
will be as follows:
Director No. of Ordinary Percentage interest
Shares held on Admission in the Company on Admission
Laurence Read 126,257 0.26%
-------------------------- -----------------------------
Myles Campion 248,793 0.51%
-------------------------- -----------------------------
Related Party Transactions
Pursuant to the abovementioned Fundraising, Deutsche Balaton
Aktiengesellschaft ("DBA") is investing GBP400,000, via the
placing, for 3,137,255 new Ordinary Shares. DBA has been a
substantial shareholder of the Company within the last 12 months
and, accordingly, is considered to be a related party under the AIM
Rules for Companies (the "AIM Rules"). The participation of DBA in
the Fundraising is therefore deemed to constitute a related party
transaction pursuant to Rule 13 of the AIM Rules. Accordingly, the
independent Directors of Europa Metals, being Daniel Smith and Evan
Kirby consider, having consulted with Strand Hanson Limited, the
Company's nominated adviser, that the terms of DBA's participation
in the Fundraising are fair and reasonable insofar as the Company's
shareholders are concerned.
Messrs Read and Campion are Directors of the Company and their
respective participations in the Fundraising are therefore also
considered to be related party transactions pursuant to Rule 13 of
the AIM Rules. Accordingly, the independent Directors, being Daniel
Smith and Evan Kirby, having consulted with the Company's nominated
adviser, Strand Hanson Limited, further consider the participation
of Messrs Read and Campion in the Fundraising to be fair and
reasonable insofar as the Company's shareholders are concerned.
Admission to trading
Application will be made to the London Stock Exchange for
admission of the Fundraising Shares to trading on AIM and to the
Johannesburg Stock Exchange for quotation on AltX. It is expected
that Admission will become effective and dealings in the
Fundraising Shares commence at 8.00 a.m. on or around 26 August
2020.
Following Admission, the total issued ordinary share capital of
the Company will comprise 49,130,649 Ordinary Shares with voting
rights. 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 Company's share capital.
Commenting today, Myles Campion, Executive Chairman of Europa
Metals, said :
"With the completion of this significant Fundraising, Europa
Metals can see a clear pathway to completing major items that will
form part of a PFS. The net proceeds will enable us to continue the
efficient work that our team has been carrying out at Toral and
increase our level of activity at site to move the project forward
in respect of the key workstreams outlined."
Laurence Read, CEO of Europa Metals, further commented :
"The Toral project has been continually advanced by Europa
Metals and last week we reported a resource update estimating a
3.8Mt Indicated resource at 8.3% Zn Equivalent (including Pb
credits) and 17Mt total resource at 6.9% Zn Equivalent (including
Pb credits), at a 4% cut-off. With a total resource containing
720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million
ounces of silver and testwork recoveries of 83.7% lead recovery to
a 60% concentrate , 77% zinc recovery to a 59.1% concentrate and
87.1% silver recovery to 1,350ppm Ag within lead concentrate, we
have taken the decision to raise funds to complete certain key
components of a PFS.
"The Fundraising has been successfully completed by Turner Pope
following, inter alia, the Company's recent share consolidation and
a series of operational updates pertaining to, amongst other
things, a new resource estimate, and appointment of a marketing and
sales agency to progress the potential future concentrate sales
strategy for Toral.
"The Fundraising will enable the Company to undertake key work
items necessary for the eventual completion of a full PFS including
advancing the resource categorisation of the block model. I look
forward to announcing further updates shortly from work already in
progress including metallurgical and ore sorting analysis and
thereafter new preliminary economics for the Toral Project,
updating the parameters in the 2018 Scoping Study to reflect the
significant work completed since its publication.
"We continue to endeavour to advance Toral as a realisable,
robust future source of lead, zinc and silver with excellent
recoveries and grade, situated within a proven mining region of the
EU with well established road, rail and power infrastructure."
For further information on the Company, please visit www.europametals.com or contact:
Europa Metals Ltd
Laurence Read, CEO (UK)
T: +44 (0)20 3289 9923
Dan Smith, Non-Executive Director and Company Secretary
(Australia)
T: +61 417 978 955
Strand Hanson Limited (Nominated Adviser)
Rory Murphy / Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited ( Broker)
Andy Thacker
T: +44 (0)20 3657 0050
Sasfin Capital Proprietary Limited (a member of the Sasfin
group)
Sharon Owens
T (direct): +27 11 809 7762
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR").
This announcement is not intended to, and does not, constitute
or form part of any offer or invitation, or the solicitation of an
offer, to purchase, otherwise acquire, subscribe for, sell or
otherwise dispose of, any securities in the United States of
America or Australia or any jurisdiction in contravention of
applicable law. The Company's securities have not been and will not
be registered under the United States Securities Act of 1933 (the
"1933 Act") or under the securities laws of any State or other
jurisdiction of the United States and may not be offered, sold,
re-sold, delivered, distributed or otherwise transferred, directly
or indirectly, in or into, the United States or to U.S. Persons (as
defined in the 1933 Act) unless registered under the 1933 Act and
applicable state securities laws, or an exemption from such
registration is available.
PDMR Notification Forms
The notifications below are made in accordance with the
requirements of MAR.
1. Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Myles Campion
-------------------------------- --------------------------------
2. Reason for the Notification
------------------------------------------------------------------
a) Position/status Executive Chairman
-------------------------------- --------------------------------
b) Initial notification/amendment Initial notification
-------------------------------- --------------------------------
3. Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
------------------------------------------------------------------
a) Name Europa Metals Ltd
-------------------------------- --------------------------------
b) LEI 2138008QU5PGK777XM59
-------------------------------- --------------------------------
4. Details of the transaction(s):section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
------------------------------------------------------------------
a) Description of the Financial Ordinary Shares of no par value
instrument, type of instrument
-------------------------------- --------------------------------
Identification code AU0000090060
-------------------------------- --------------------------------
b) Nature of the Transaction Participation in fundraising
-------------------------------- --------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
12.75 pence per
share 78,431
----------
-------------------------------- --------------------------------
d) Aggregated information N/A
Aggregated volume price
-------------------------------- --------------------------------
e) Date of the transaction 19 August 2020
-------------------------------- --------------------------------
f) Place of the transaction AIM (LSE)
-------------------------------- --------------------------------
1. Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Laurence Read
-------------------------------- --------------------------------
2. Reason for the Notification
------------------------------------------------------------------
a) Position/status CEO
-------------------------------- --------------------------------
b) Initial notification/amendment Initial notification
-------------------------------- --------------------------------
3. Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
------------------------------------------------------------------
a) Name Europa Metals Ltd
-------------------------------- --------------------------------
b) LEI 2138008QU5PGK777XM59
-------------------------------- --------------------------------
4. Details of the transaction(s):section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
------------------------------------------------------------------
a) Description of the Financial Ordinary Shares of no par value
instrument, type of instrument
-------------------------------- --------------------------------
Identification code AU0000090060
-------------------------------- --------------------------------
b) Nature of the Transaction Participation in fundraising
-------------------------------- --------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
12.75 pence per
share 78,431
----------
-------------------------------- --------------------------------
d) Aggregated information N/A
Aggregated volume price
-------------------------------- --------------------------------
e) Date of the transaction 19 August 2020
-------------------------------- --------------------------------
f) Place of the transaction AIM (LSE)
-------------------------------- --------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IOEEAEPPFDAEEAA
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