Galileo Resources PLC Placing, Total Voting Rights (6452K)
April 12 2018 - 2:00AM
UK Regulatory
TIDMGLR
RNS Number : 6452K
Galileo Resources PLC
12 April 2018
12 April 2018
Galileo Resources Plc
("Galileo" or "the Company")
Placing
Total Voting Rights
Galileo Resources Plc is pleased to announce that the Company's
broker, Novum Securities Limited, has today completed a placing
with institutional and retail investors of 50,000,000 new ordinary
shares ("Placing Shares") of 0.1p each (the "Ordinary Shares") at a
placing price of 1.1p (the "Placing Price") per Placing Share to
raise GBP550,000 before expenses (the "Placing"), subject to
admission to trading on AIM. The Placing Price is at a discount of
approximately 20% compared to the closing mid-market of 1.375p
yesterday. The Company intends to use the proceeds of the Placing
for general working capital and the next programme of drilling at
the Company's Star Zinc project.
Colin Bird, Chairman of Galileo Resources, said, "Following the
positive drill results announced on April 10 2018 the Company has
immediately completed a placing to enable the Company to do all
things necessary including geophysics, modelling and other
pre-drilling work in order to fast track the next programme of
drilling, which should add further value to what is undoubtedly a
significant discovery."
In conjunction with the Placing, the Company has considered
whether it would be feasible to offer shares on similar terms to
Shareholders by means of a pre-emptive issue, but understands that
the placing funds would not have been available on the terms
offered and in the timescale envisaged if combined with a
pre-emptive offering. The Board fully considered the offer of
funding and has taken into account the uses to which the funds
being raised could be put and whether in its view there are
sufficient commercial advantages for the development of Shareholder
value to taking the funding now. On balance therefore, the Board
has concluded that it would be in the best interests of the Company
and its Shareholders to proceed with the Placing with Novum without
a pre-emptive offering at this time at the level of dilution
proposed. That said, the Board intends that it will, so far as
practicable, in conjunction with the next fundraise undertaken by
the Company, make arrangements for an Open Offer to Shareholders on
the same terms as this next fundraise.
In connection with the Placing, the Company has granted Warrants
to subscribe for 50,000,000 shares at an exercise price of 2p per
share. The Warrants may be exercised at any time in the period
expiring on the second anniversary of Admission on the Placing
Shares.
The Placing Shares will, when issued, rank pari passu in all
respects with the existing Ordinary Shares. Application will be
made for the Placing Shares to be admitted to trading on AIM and
admission is expected to take place on or around 17 April 2018.
Following the issue of the Placing Shares, the Company's issued
share capital will total 304,596,562 Ordinary Shares, with voting
rights. This figure may be used by shareholders in the Company as
the denominator for the calculation 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.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
You can also follow Galileo on Twitter: @GalileoResource
For further information, please contact: Galileo Resources
PLC
Colin Bird, Chairman Tel +44 (0) 20 7581 4477
Andrew Sarosi, Executive Director Tel +44 (0) 1752 221937
Beaumont Cornish Limited - Nomad & Joint Broker Tel +44 (0) 20 7628 3396
Roland Cornish/James Biddle
Novum Securities Limited - Joint Broker Tel +44 (0) 20 7399 9400
Colin Rowbury/Jon Belliss
This information is provided by RNS
The company news service from the London Stock Exchange
END
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