Strategic Minerals PLC Partial Redmoor Option exercise and extension (2603J)
September 08 2016 - 2:01AM
UK Regulatory
TIDMSML
RNS Number : 2603J
Strategic Minerals PLC
08 September 2016
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
8 September 2016
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Partial Redmoor Option exercise and Option extension
Strategic Minerals PLC (AIM: SML; USOTC; SMCDY), the
multi-minerals production, exploration and development company, is
pleased to announce that it has agreed an extension to the option
to acquire shares in NAE Resources (UK) Limited ("Redmoor"),
further details of which were announced by the Company on 26 May
2016 (the "Option"). The Option entitled the Company to acquire
278,864 new ordinary shares in Redmoor for a total consideration of
GBP945,348.96 in cash at any time prior to 31 December 2016. The
Company has today agreed with Redmoor to an extension to the Option
exercise deadline until 15 February 2017 (the "Option Period").
In addition, the Company has made a partial exercise under the
Option, for 30,000 new ordinary shares in Redmoor at a price of
GBP3.39 per share for a total consideration of GBP101,700. This,
when combined with the Company's current holding of 30,973 shares,
will result in the Company holding 16.4% of Redmoor's issued
capital. Following this partial exercise, the Option now entitles
the Company to acquire 248,864 new ordinary shares in Redmoor for a
total consideration of GBP843,648.96. Should the Company exercise
the balance of the Option in full, the Company would have a 50%
interest in the enlarged share capital of Redmoor.
Should Strategic Minerals fail to exercise, in full, its Option
to subscribe for the Redmoor shares, then New Age Exploration
Limited ("NAE") will have a five year right to acquire any shares
subscribed for under the Option at the face value of GBP3.39 per
share. This does not impact on NAE's previous right to acquire all
of the initial 30,973 Redmoor subscription shares for a total of
GBP1.00 should the Company, or its nominee, fail to have exercised,
in full, its Option during the Option Period.
Funds from the current subscription for 30,000 new ordinary
Redmoor shares will be applied by Redmoor primarily for advancing
the project during the pre-drilling phase and to cover working
capital requirements. Work associated with preparing for drilling
is expected to commence this month in line with Redmoor's stated
target of commencement of drilling in the first half of 2017.
Commenting, Strategic Mineral's Managing Director, John Peters,
said:
"The extension of the Option Period for the subscription for
shares in Redmoor, while only approximately six weeks, is important
to the Company as it extends beyond the date by which a major
payment under the recent rail settlement is due. This puts the
Company in a stronger position to fund this investment with minimal
dilution to existing shareholders.
"The partial subscription of 30,000 shares, under the Option,
confirms the Board's intent to take the Option up in full and
provides funding to prepare the project for drilling in the first
half of 2017."
For further information, please contact:
Strategic Minerals plc
John Peters
Managing Director
www.strategicminerals.net +61 (0) 414 727 965
Allenby Capital Limited
Nominated Adviser and Broker
John Depasquale
Jeremy Porter
James Reeve +44 (0)20 3328 5656
Yellow Jersey PR
Financial PR
Dominic Barretto +44 (0) 7825 916
Alistair de Kare-Silver 715
Notes to Editors:
Strategic Minerals Plc is an AIM-quoted, diversified mineral
development and production company with projects in the United
States of America and Australia. The Company's focus is on
acquiring and developing cash generative, high quality projects
that meet local market demand for commodities and utilising this
cash flow to undertake value added exploration.
In September 2011, Strategic Minerals purchased its first
cash-generating asset, the Cobre magnetite tailings dam project in
New Mexico, USA, brought into production in 2012, which continues
to provide a revenue stream for the Company. The portfolio was
expanded in January 2016 with the acquisition of shares in Central
Australian Rare Earths Pty Ltd, which holds tenements in Western
Australia and the Northern Territory that are prospective for
nickel sulphides, platinum and rare earths. Strategic Minerals has
completed drill-testing the highest priority nickel sulphide
targets within the tenements and has successfully intersected
nickel sulphide and platinum. In May 2016, the Company also entered
arrangements to buy up to 50% of the Redmoor tin/tungsten
exploration project in Cornwall, UK.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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