TIDMOTC
RNS Number : 7990D
Ortac Resources Limited
02 May 2017
2 May 2017
Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining
& Exploration
ORTAC RESOURCES LTD
("ORTAC" OR THE "COMPANY")
Placing of GBP2 million and further investment in Casa Mining
Limited
Ortac Resources Ltd, the AIM listed mineral exploration company
operating in Europe and Africa today announces that it has raised
GBP2 million before expenses from a placing of 66,666,667 new
ordinary shares of no par value of Ortac ("Ordinary Shares") at 3
pence per share ("Placing") to fund the acquisition of a US$2
million convertible loan note ("CLN") issued by Casa Mining Limited
("Casa").
The Placing was supported by both new and existing investors and
a number of the Directors of Ortac who have also participated in
the placing, further details of which are set out below.
Vassilios Carellas, Ortac's CEO, commented: "Ortac has steadily
been building up its stake in Casa, where this significant and new
investment, following conversion, would make Ortac, Casa's largest
shareholder with an approximate 45% stake in the company.
I am delighted with the support we received for this Placing
from both existing and new shareholders, which is testament to the
improving market sentiment we are now seeing across the metal and
mineral exploration sector. With this funding in place, Casa will
commence a new drill programme on their flagship Akyanga deposit
where a revised geological model is in place and where this new
drilling will help Casa work towards unlocking, what is potentially
a significant gold resource in excess of 2Moz".
About Casa Mining Limited
CASA is a private Mauritian-registered company that is the
71.25% owner and operator of the Misisi Gold Project located in
South Kivu, Eastern Democratic Republic of the Congo ("DRC"),
approximately 350km south of Bukavu and 180km north of Kalemie. MMG
Limited, headquartered in Melbourne, Australia and listed on the
Hong Kong Stock Exchange and Australian Securities Exchange, hold
23.75% of the Missisi Gold Project, while the government of the DRC
holding the remaining 5%.
The CASA licence holdings consist of three contiguous mining
licenses (total of 133km(2) ), issued in March 2015 and valid for
30 years. These licenses, which encompass a 50km strike length of
the Tanganyika graben within the Rusizian belt ("Misisi Corridor"),
include the Akyanga Deposit along with the Lubitchako, Tulongwe,
Kilombwe and Mutshobwe prospects (targets).
Over the last six years over US$30 million was spent developing
these licenses. In addition to the regional geophysical surveys
completed over these license areas in 2011, CASA has carried out
19,522m of diamond drilling, 2,720m of reverse circulation drilling
and excavated 6,274 line metres of trenches on their respective
licenses.
At CASA's most advanced project, the Akyanga Deposit, SRK has
reported a Mineral Resource within a $1,200/oz gold selling price
and 0.5 g/t Au cut-off grade optimised pit shell. This comprises an
Inferred oxide gold Mineral Resource of 5.5 Mt at a grade of 1.5
g/t Au for approximately 272 koz of contained metal. SRK has
further reported an Inferred transition gold Mineral Resource of
16.2 Mt at a grade of 1.8 g/t Au for approximately 927 koz of
contained metal.
MDM, in conjunction with SRK, completed a scoping feasibility
study for the Akyanga deposit resulting in an ungeared NPV (8%) and
IRR of $171m and 35% respectively at a $1,300/oz gold price. This
assumes a contract mining scenario with an initial capital cost
estimate of $87.4m and a total operating cost of $628/oz.
CASA is currently reviewing its strategy and options for the
development of the Misisi Project. This follows internal workshops
by CASA's independent experts who have identified resource
potential at the Akyanga Deposit of over 2Moz due to the orebody
being open along strike to the north and south and to the east.
Investment in Casa
The Company entered into an agreement with Casa pursuant to
which Ortac has agreed to acquire CLNs for US$2 million in cash
("Agreement"), subject to the satisfaction of certain conditions,
including that Casa's title to licences are in good standing.
The proceeds raised from the CLN will be used to conduct an
exploration programme at Casa's Misisi gold project in the Eastern
DRC and for working capital purposes.
The Agreement contains the following terms and conditions:
The CLN is repayable by 30 April 2020 and Ortac is entitled to
convert the CLN into 3,076,924 ordinary shares of Casa at a deemed
price of US$0.65 per share up until 27 February 2018. If the CLN is
converted after 27 February 2018, the CLN will convert into
ordinary shares of Casa at a deemed price of US$1.20 per share and
the conversion price will subsequently increase by 10% per quarter
year.
Ortac will have pre-emption rights in the share capital of Casa
for a period of 12 months, from the date of acquiring the CLN, and
will be entitled to nominate two directors to the Board of Casa out
of a total of five Board members. Ortac intends to nominate
Vassilios Carellas (CEO of Ortac) and Nick von Schirnding
(Non-executive Director of Ortac) to the Board of Casa.
The CLNS do not bear interest and are unsecured.
Ortac currently holds 1,691,889 ordinary shares of Casa,
representing 22.8% of the entire issued share capital of Casa.
The Placing
Application has today been made for 66,666,667 new Ordinary
Shares to be admitted to trading on AIM ("Admission"). It is
expected that Admission will become effective on or around 8 May
2017. The new Ordinary Shares will rank pari passu with the
existing issued Ordinary Shares.
Related party transaction
Anthony Balme, Vassilios Carellas and Nick von Schirnding are
related parties to Ortac, as defined in the AIM Rules for Companies
and, due to their participation in the Placing, the transaction is
a related party transaction as specified in Rule 13 of the AIM
Rules ("Related Party Transaction").
Anthony Balme, Vassilios Carellas and Nick von Schirnding are
therefore not considered independent for the purposes of Rule 13 of
the AIM Rules. Accordingly, Paul Heber, being the independent
director of Ortac for the purposes of the Related Party Transaction
considers, having consulted with the Company's nominated adviser,
SP Angel Corporate Finance LLP, that the terms and conditions of
the Placing are fair and reasonable insofar as the shareholders of
the Company are concerned.
Holdings in Company
Following the completion of the Placing, the Company expects the
following shareholders of the Company and persons discharging
managerial responsibilities ("PDMRs"), as defined in EU Regulation
596/2014 (the "Market Abuse Regulation" or "MAR"), to have a
notifiable interest in the issued Ordinary Share capital, as
follows:
% interest
Existing Number of Interest in the total
Shareholder interest Placing in the Ordinary issued Ordinary
in the Shares acquired Shares following Shares following
Ordinary the Placing the Placing
Shares
--------------- ----------- ------------------ ------------------- ------------------
Anthony Balme 8,588,902 1,000,000 9,588,902 6.44%
--------------- ----------- ------------------ ------------------- ------------------
Vassilios
Carellas 770,000 166,667 936,667 0.63%
--------------- ----------- ------------------ ------------------- ------------------
Nick von
Schirnding 260,000 333,333 593,333 0.40%
--------------- ----------- ------------------ ------------------- ------------------
Voting Rights
Following admission of the new Ordinary Shares issued pursuant
to the Placing, the total issued share capital of the Company will
consist of 148,801,654 Ordinary Shares each with voting rights. The
Company does not hold any Ordinary Shares in treasury. Therefore,
the total number of voting rights in the Company will be
148,801,654 and this figure may be used by Shareholders 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 share capital of the Company.
Competent Person
The information in this press release is based on information
provided by Casa Mining Limited and compiled on behalf of Ortac by
Mr Vassilios Carellas. The SRK JORC Mineral Resource estimate, the
MDM-SRK Scoping Study and the updated resource estimate by CASA's
independent experts have not been independently verified by Ortac
Resources Ltd. Mr Vassilios Carellas (BSc (Hons), MAusIMM) is the
Chief Executive Officer for Ortac Resources Limited and has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined under the
JORC Code (2012). Mr Carellas consents to the inclusion in this
announcement of the matters based on his information in the form
and context in which it appears.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
The notifications below, made in accordance with the
requirements of the EU Market Abuse Regulation, provide further
detail on the director's share dealing.
NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS
DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY
ASSOCIATED WITH THEM
1. Details of the person discharging managerial
responsibilities/person closely associated
---- --------------------------------------------------------------------------
a) Name: Anthony Balme
---- -------------------------------- ----------------------------------------
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: Ortac Resources
Limited
---- -------------------------------- ----------------------------------------
b) LEI: 213800XHFJVCC9GP2G75
---- -------------------------------- ----------------------------------------
4a. 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
instrument, type of of no par value
instrument: VGG6829M1187
Identification code:
---- -------------------------------- ----------------------------------------
b) Nature of the transaction: Purchase of new
ordinary shares
---- -------------------------------- ----------------------------------------
c) Price(s) and volume(s): Price(s) Volume(s)
---------- ----------
3 pence 1,000,000
---------- ----------
---- -------------------------------- ----------------------------------------
d) Aggregated information: Single transaction
Aggregated volume: as in 4 c) above Price(s) Volume(s)
Price: ---------- ----------
3 pence 1,000,000
---------- ----------
---- -------------------------------- ----------------------------------------
e) Date of the transaction: 2017-05-02
---- -------------------------------- ----------------------------------------
f) Place of the transaction: Outside a trading
venue
---- -------------------------------- ----------------------------------------
1. Details of the person discharging managerial
responsibilities/person closely associated
---- ---------------------------------------------------------------------------
a) Name: Vassilios Carellas
---- --------------------------------- ----------------------------------------
2. Reason for the notification
---- ---------------------------------------------------------------------------
a) Position/status: Chief Executive Officer
---- --------------------------------- ----------------------------------------
b) Initial notification/Amendment: Initial notification
---- --------------------------------- ----------------------------------------
3. Details of the issuer, emission allowance
market participant, auction platform, auctioneer
or auction monitor
---- ---------------------------------------------------------------------------
a) Name: Ortac Resources Limited
---- --------------------------------- ----------------------------------------
b) LEI: 213800XHFJVCC9GP2G75
---- --------------------------------- ----------------------------------------
4a. 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
instrument, type of instrument: no par value
Identification code: VGG6829M1187
---- --------------------------------- ----------------------------------------
b) Nature of the transaction: Purchase of new ordinary
shares
---- --------------------------------- ----------------------------------------
c) Price(s) and volume(s): Price(s) Volume(s)
---------- ----------
3 pence 166,667
---------- ----------
---- --------------------------------- ----------------------------------------
d) Aggregated information: Single transaction
Aggregated volume: as in 4 c) above Price(s) Volume(s)
Price: ---------- ----------
3 pence 166,667
---------- ----------
---- --------------------------------- ----------------------------------------
e) Date of the transaction: 2017-05-02
---- --------------------------------- ----------------------------------------
f) Place of the transaction: Outside a trading
venue
---- --------------------------------- ----------------------------------------
1. Details of the person discharging managerial
responsibilities/person closely associated
---- ---------------------------------------------------------------------------
a) Name: Nick von Schirnding
---- --------------------------------- ----------------------------------------
2. Reason for the notification
---- ---------------------------------------------------------------------------
a) Position/status: Non-Executive Director
---- --------------------------------- ----------------------------------------
b) Initial notification/Amendment: Initial notification
---- --------------------------------- ----------------------------------------
3. Details of the issuer, emission allowance
market participant, auction platform, auctioneer
or auction monitor
---- ---------------------------------------------------------------------------
a) Name: Ortac Resources Limited
---- --------------------------------- ----------------------------------------
b) LEI: 213800XHFJVCC9GP2G75
---- --------------------------------- ----------------------------------------
4a. 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
instrument, type of instrument: no par value
Identification code: VGG6829M1187
---- --------------------------------- ----------------------------------------
b) Nature of the transaction: Purchase of new ordinary
shares
---- --------------------------------- ----------------------------------------
c) Price(s) and volume(s): Price(s) Volume(s)
---------- ----------
3 pence 333,333
---------- ----------
---- --------------------------------- ----------------------------------------
d) Aggregated information: Single transaction
Aggregated volume: as in 4 c) above Price(s) Volume(s)
Price: ---------- ----------
3 pence 333,333
---------- ----------
---- --------------------------------- ----------------------------------------
e) Date of the transaction: 2017-05-02
---- --------------------------------- ----------------------------------------
f) Place of the transaction: Outside a trading
venue
---- --------------------------------- ----------------------------------------
**S**
For further information please visit www.ortacresources.com or
contact:
Ortac Resources Ltd +44 (0) 20
Vassilios Carellas (CEO) 7389 9050
SP Angel (Nominated Adviser
& Broker) +44 (0) 20
Ewan Leggat / Lindsay Mair 3470 0470
Peterhouse Corporate Finance +44 (0) 20
Limited (Joint Broker) 7469 0930
Guy Miller / Lucy Williams www.pcorpfin.com
The company news service from the London Stock Exchange
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