Nyota Minerals Limited Termination of acquisition and corporate update (6221Z)
March 16 2017 - 3:30AM
UK Regulatory
TIDMNYO
RNS Number : 6221Z
Nyota Minerals Limited
16 March 2017
For immediate release
16 March 2017
Nyota Minerals Limited
("Nyota" or the "Company")
Termination of proposed Bigdish acquisition and corporate
update
On 15 November 2016, the Company announced that it had signed a
non-binding letter of intent ("Letter of Intent") relating to the
potential acquisition of Bigdish Ventures Limited ("Bigdish") which
would, had it proceeded, have amounted to a Reverse Takeover under
the AIM Rules and a back-door listing for the purposes of the ASX
Listing Rules.
The Company has, by mutual consent, terminated the Letter of
Intent. There were a number of reasons for the termination,
including the fact that the substantial costs to be incurred by
Nyota in complying with the requirements of the ASX Listing Rules
and AIM Rules were not acceptable to Bigdish when compared with
other potential options. In addition, there was also a delay in
Bigdish commencing its Australian operations which would have
provided an appropriate linkage between the Company and Australia.
Bigdish has indicated to the Company that it intends to separately
pursue a standard listing on the London Stock Exchange ("LSE").
The Company and Bigdish have further agreed that the monies owed
by the Company under the Bigdish Loan (as previously announced on
15 November 2016) amounting to GBP200,000 excluding interest, will
be fully repaid by the conversion of the Bigdish Loan into new
ordinary shares in the Company ("Loan Conversion Shares"). The
issue price of the Loan Conversion Shares will be set at the price
at which the Company next raises capital and the issue of the Loan
Conversion Shares will be subject to shareholder approval.
Conditional on approval by shareholders of the Loan Conversion
Shares, Bigdish will issue GBP200,000 worth of new Bigdish ordinary
shares to the Company for nil consideration (the "Bigdish
Shares").
Andrew Wright, the Company's Chief Executive Officer, commented
that: "It is disappointing that the Bigdish transaction has been
terminated, as a great deal of work had been accomplished, however
the Directors felt it was in the best interests of the Company to
cease discussions at this time before incurring further costs.
Subject to the Loan Conversion Share issue being approved by
shareholders, the Company's shareholders will have an interest in
Bigdish through the Bigdish Shares."
Andrew Wright added that: "The Board remains focussed on
ensuring that there is a pathway forward for the Company's
shareholders".
Discussions with respect to further funding
The Company further announces that it is in discussions with
several parties in respect of a private placement of new ordinary
shares, which will be within the Company's current placement
authority under the ASX Listing Rules. The funding would provide
additional working capital which is required for the Company's
short term financial needs. However there is no guarantee that any
such funding will proceed and a further announcement will be made
in due course.
Update on trading on ASX and AIM
Despite the termination of the Letter of Intent with Bigdish,
the ASX has indicated to the Company that it is unlikely to lift
the Company's current suspension from trading on ASX until such
time as the Company has made submissions to ASX that its level of
operations are sufficient to warrant the continued quotation of the
Company's securities and its continued listing. In the Company's
opinion, based on previous experience, this is only likely to be
satisfied by way of a new acquisition, Reverse Takeover or
back-door listing transaction.
As the Reverse Takeover is no longer proceeding, there is no
further requirement pursuant to AIM Rule 14 for the temporary
suspension of the Company's shares as announced on 15 November 2016
and restoration of trading on AIM will therefore take effect from
7.30am on 16 March 2017.
Extraordinary General Meeting on 21 March 2017
As announced on 3 January 2017, the Company entered into a
conditional agreement to sell the Company's main undertaking, being
its 70% interest in KEC Exploration Pty Limited (the "Disposal")
and on 17 February 2017 published a notice of Extraordinary General
Meeting ("Meeting") to be held at 5:30pm (Sydney time) on 21 March
2017 to approve the Disposal.
Given the terms of the existing sale agreement with the
purchaser and the costs incurred to date with respect to the
Disposal, the Directors consider it appropriate to continue with
the proposed Disposal.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 956/2014.
For further information please visit www.nyotaminerals.com or
contact:
Chairman, Nyota Minerals
Jonathan Morley-Kirk Limited +44 7797 859986
====================== ========================== ================
Beaumont Cornish
Michael Cornish Limited +44 (0) 207 628
James Biddle Nominated Advisor 3396
====================== ========================== ================
Rupert Williams Smaller Company Capital +44 (0) 20 3651
Jeremy Woodgate Limited 2912
====================== ========================== ================
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCQQLBFDXFXBBB
(END) Dow Jones Newswires
March 16, 2017 03:30 ET (07:30 GMT)
Nyota Minerals (LSE:NYO)
Historical Stock Chart
From Apr 2024 to May 2024
Nyota Minerals (LSE:NYO)
Historical Stock Chart
From May 2023 to May 2024