TIDMGWMO
RNS Number : 3176T
Great Western Mining Corp. plc
13 November 2019
GREAT WESTERN MINING CORPORATION PLC
("Great Western", "GWM" or the "Company")
Placing, Board Changes and Strategy Update
SHARE PLACING
Great Western Mining Corporation PLC (AIM - GWMO; Euronext
Growth - 8GW) announces that it has today raised GBP300,000 before
expenses through the issue of 375,000,000 new Ordinary Shares (the
"Placing") at a price of .08 pence each. Each Placing share will
carry a warrant to subscribe for one further share at a price of
0.16p/share for three years. In addition the Company has issued
69,381,650 Ordinary Shares in settlement of outstanding salaries
and fees due to be paid by the Company and these shares will be
locked for 90 days from the date of issue. In total 444,381,650 new
Ordinary Shares have been issued.
The proceeds of the Placing will be used to progress the
potential for gold and silver extraction on the Company's mining
leases in Nevada, USA, for seeking out new ventures for the Company
and for general working capital purposes.
DIRECTOR PARTICIPATION
Brian Hall, and Max Williams, both directors of the Company,
will participate in the above share issues as follows.
Director Ordinary Shares Resultant holding Resultant percentage
to be issued of Ordinary Shares holding (of enlarged
issued share capital)
Brian Hall 40,116,850 45,033,316 4.01%
---------------- -------------------- -----------------------
Max Williams 31,250,000 31,250,000 2.79%
---------------- -------------------- -----------------------
The participation by Brian Hall and Max Williams constitute
related party transactions for the purposes of AIM Rule 13 and
Euronext Growth Rule 13. The independent directors, having
consulted with the Company's nominated adviser and Euronext Growth
Adviser, Davy, consider the terms of the related party transactions
are fair and reasonable in so far as the Company's shareholders are
concerned.
SETTLEMENT AND DEALING
Application will be made to the AIM Market of the London Stock
Exchange ("AIM") and Euronext Growth for a total of 444,381,650
Ordinary Shares, which rank pari passu with the Company's existing
issued Ordinary Shares, to be admitted to trading. Dealings on AIM
and Euronext Growth are expected to commence on or around 19
November 2019 ("Admission").
COPPER PROJECT
GWM's main thrust to date has been to establish an economic
copper resource. Through drilling 42 high altitude boreholes,
together totaling 6,900 metres, on its M2 prospect, it has now
established an inferred and independently-reported copper resource
of 4.3 million tonnes of 0.45% Cu. The Company is targeting a
deeply-buried zone within the host diorite rock, anticipated to be
the source of the widespread copper and gold mineralisation found
at and near surface at M2. The Company is reviewing financing and
partnership options to fast-track progress and will keep
shareholders updated.
GOLD PROJECT
In 2018, 66 new claims were added to the Eastern flank of the
Black Mountain Group to incorporate the historic Silver Moon and
Silver Bell mines into Great Western Mining's land holdings. The
Company has identified the potential for gold and silver extraction
on its leases in Mineral, County, Nevada, where it believes modern
technology can be used to rework abandoned gold mines, of which
there are several on its properties. Shareholders were advised of
this potential in the 2019 half-yearly Report and Interim Statement
issued on 30 September 2019 and in operational updates released on
29 May and 26 June 2019.
Gold (>0.1 g/t Au) was encountered in the samples taken,
including a grade of 95.6 g/t Au and 773 g/t Ag, as well as further
samples of 19.1 g/t Au and 15.2 g/t Au. Mineralisation appears to
be present across an area of at least 2 km(2) , making M3 a large
and highly prospective target.
Placing funds will be used primarily to accelerate the appraisal
of selected mine sites and to establish the extent of potential
precious metal reserves. This will include trying to establish
possible connectivity between neighbouring historically-abandoned
workings where the Board believes that the precious metals
potential can be exploited at a lower cost and in a much shorter
time than over the copper prospects. In addition, the funds will be
used to help identify and pursue compatible mining industry
ventures with a view to expanding the company's field of
operations.
APPOINTMENT OF CORPORATE BROKER
Great Western is pleased to advise that ETX Capital has been
appointed as a joint corporate broker to the Company.
DIRECTORATE & MANAGEMENT CHANGES
1. David Fraser is standing down as Chief Executive Officer with
immediate effect to pursue opportunities in another sector and is
retiring from the Board.
2. Brian Hall, currently Chairman, becomes Executive Chairman
and will steer the Company through the next stage of its
development. He will waive any claims to salary or fees for the
remainder of 2019.
3. As indicated in the Interim Statement of 30 September,
Finance Director Melvyn Quiller is retiring from the Board with
immediate effect.
4. Max Williams has been co-opted to the Board as Finance
Director and will offer himself for election at the next Annual
General Meeting of the Company.
5. Exploration Manager William ('Bill') Cooper becomes Chief Operating Officer.
Great Western has identified and will engage experienced new
business consultants to assist in expanding the Company's
activities beyond its existing portfolio of assets.
David Fraser has managed Great Western with competence and
dedication since his appointment in 2013, overseeing the
establishment of an inferred copper resource of approximately 4
million tonnes. Melvyn Quiller has been involved with the Company
for over a decade and is retiring in the normal course of business.
The Board would like to thank them both for their service to the
Company.
Chairman Brian Hall commented: We strongly believe in the
potential for gold and silver on Great Western's leases in Mineral
County, Nevada and the placing of new shares will enable us to move
to the next stage of determining the potential for precious metals
recovery. This follows extensive field work undertaken over the
course of this year by our exploration team, led by Bill Cooper who
has spent many years in Western Australia with exposure to
comparable projects.
"Great Western has a strong and enviable land position in
Mineral County covering all minerals and flanked by neighbouring
mining companies which are either producing gold or exploring for
gold. With the placing funds in hand further work will commence
immediately on the gold and silver prospects and we expect to (1)
carry out sampling and make our first progress report at or soon
after the year end, (2) to have completed trenching by early spring
2020 and (3) to have completed a drill programme by late spring. As
well as working on our own projects in Nevada we will be actively
seeking new ventures and industry alliances to broaden the base of
our mineral interests. We will keep shareholders regularly updated
on progress."
NOTE TO EDITORS:
Board and Senior Management following Reorganisation
Brian Hall, Executive Chairman, joined the Board in 2012. He has
over 40 years' experience in natural resources and is a Chartered
Accountant. In 1991 through a merger he formed Aminex PLC, an
international oil and gas company, where he served at different
times as Chairman or CEO until retiring in 2018. He launched Aminex
into a successful venture in Russia in 1994, distributing the exit
profits to shareholders in 2001. He has worked in both oil and
mining and has operated across both developed and emerging market
countries, guiding Aminex through several significant ventures,
most recently in east Africa. He began his oil industry career with
Hamilton Brothers Oil Company of Denver, Colorado where he was a
member of the small team which brought Argyll on-stream, the UK
North Sea's first producing oilfield. In the 1980s he was UK
Manager for Lochiel Exploration of Canada and responsible for its
interests outside North America. At different times he has served
on the boards of Fortune Oil PLC, Connary Minerals PLC, Highland
Participants PLC, Albion International Resources Inc. and Canyon
Oil and Gas Ltd.
William ("Bill") Cooper, Chief Operating Officer, joined the
Company in 2018 as full-time Exploration Manager, replacing
external consultants on whom the Company had previously relied.
Bill Cooper is an experienced mining geologist whose career
includes on-site field work in Western Australia. At Barrick Gold
he was the open pit mine geologist at the Fimiston Open Pit. At
Focus Minerals he was Project Geologist, responsible for
drill-planning and supervision, 3D geological interpretation, drill
logging, open pit production reporting and geological supervision,
in-pit grade control supervision and grade control modelling. He
subsequently returned to the U.K. and worked with a leading UK firm
of consultants and reporting engineers. Bill Cooper has an MSc from
the Camborne School of Mines, is a Fellow of the Geological Society
in the U.K. and a member of the Australian Institute of Geology.
Under the AIM rules he is a Qualified Person for reporting
purposes. He has a wide experience of commodity and deposit types,
with particular expertise in copper and gold.
Max Williams, Finance Director, is a Chartered Accountant who
has worked in the natural resources sector since 1994. Until
recently he was CFO/Finance Director of Aminex PLC, an
international oil and gas company listed on the Main Board of the
London Stock Exchange, where he was responsible for the financial
management at various times of operations spanning four continents
together with numerous financing and other corporate
transactions.
Max Williams's current and previous directorships and
directorships held over the last 5 years are tabulated below:
Current:
Cascade Group Holdings Ltd.
Previous:
Aminex PLC
Aminex Petroleum Services Ltd.
Amossco Holdings Limited
Amossco Limited
Halyard Offshore Limited
Amossco ODS Limited
Ndovu Resources Limited
Tanzoil NL
Osceola Hydrocarbons PLC
Osceola Oil and Gas Limited
There are no other matters which are required to be announced
pursuant to paragraph (g) of Schedule 2 to the AIM Rules and
Euronext Growth Rules.
Robert O'Connell, Director of US Operations, is a graduate of
Texas Christian University and subsequently worked for 15 years in
oil and gas and mining operations in the USA, with extensive
experience in drilling operations. He has led Gabriel's surface
exploration effort in Nevada for over seven years and, among other
things, is responsible for managing the Company's leases, permits
and approvals in Mineral County where he has established strong and
important local relationships. He holds dual Irish and US
citizenship.
For further information:
Great Western: Brian Hall, Chairman +44 207 933 8795 (via Walbrook PR)
Davy (NOMAD, Euronext Growth Adviser & Joint Broker)
John Frain +353 1 679 6363
Walbrook PR: Nick Rome +44 207 933 8795
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END
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