TIDMCORA
RNS Number : 6464A
Cora Gold Limited
03 June 2021
Cora Gold Limited / EPIC: CORA.L / Market: AIM / Sector:
Mining
03 June 2021
Cora Gold Limited ('Cora' or 'the Company')
Fundraising - excess demand from Subscribers
Cora Gold Limited, the West African focused gold exploration
company, is pleased to announce that it has conditionally raised
GBP3,132,937.50 million (before expenses) through a subscription of
40,425,000 new ordinary shares of no par value in the Company
('Ordinary Shares') at a price of 7.75 pence per Ordinary Share
(the 'Subscription Shares') (the 'Fundraising'). The funds raised
will principally be used for further drilling, related exploration
activities and ongoing study work focussed on growing resources at
the Company's flagship Sanankoro Gold Project in southern Mali.
Excess demand from subscribers to the Fundraising means that Cora
has now fully allotted the maximum number of shares authorised by
its shareholders at the 2020 Annual General Meeting.
Binding commitments to subscribe (the 'Subscription') for a
total of 40,425,000 Subscription Shares have been received from
Brookstone Business Inc ('Brookstone'; the Company's largest
shareholder), Lord Farmer (a substantial shareholder), Key Ventures
Holding Ltd ('Key Ventures'; a substantial shareholder), certain
directors of the Company and other subscribers. Details of their
participation and consequent interest in the Company's issued share
capital is described below.
The Fundraising is conditional on admission of the Subscription
Shares to trading on AIM ('Admission').
Bert Monro, Chief Executive Officer of Cora, commented, "I am
very pleased with the strong support we have received in this
fundraise from many of our existing shareholders. Following the
receipt of all subscription funds the Company will have total cash
of approximately GBP4.6 million (US$6.5 million). Drilling is
ongoing at Sanankoro and it has been pleasing to see such strong
results coming out of the programme to date. We look forward to
releasing further drill results over the coming months before a
targeted resource update in H2 2021. Certain aspects of the
Definitive Feasibility Study have already kicked off with more to
commence in the coming months. We look forward to keeping all
shareholders updated with our progress at this exciting time for
the Company."
Details of the Subscription
Use of proceeds
It is intended that the proceeds of the Fundraising will
principally be used for further drilling, related exploration
activities and ongoing study work focussed on growing resources at
the Company's flagship Sanankoro Gold Project in southern Mali.
Additionally, the proceeds of the Fundraising will be used to
continue exploration of the Company's other permits and for general
working capital purposes.
Admission and Total Voting Rights
The Company has conditionally raised approximately GBP3.1
million, before expenses, through the proposed issue of 40,425,000
Subscription Shares to certain existing shareholders and new
investors.
As noted above, the Fundraising is subject to Admission.
Application will be made for the Subscription Shares to be admitted
to trading on AIM and it is expected that Admission will become
effective and dealing in the Subscription Shares will commence on
or around 09 June 2021. The Subscription Shares will rank pari
passu with the existing Ordinary Shares.
Following Admission, the share capital of the Company will be
comprised of 245,807,159 Ordinary Shares. The above figure of
245,807,159 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 Cora under the FCA's Disclosure and
Transparency Rules.
Related party transaction
The Subscription by each of Brookstone, Lord Farmer, Key
Ventures, Edward Bowie, Andrew Chubb, Robert ('Bert') Monro and
Paul Quirk constitutes related party transactions pursuant to Rule
13 of the AIM Rules. Having consulted with the Company's nominated
adviser, David Pelham, a Non-Executive Director of the Company,
considers that the terms of the transaction are fair and reasonable
insofar as its shareholders are concerned.
The following directors of the Company or their connected
parties have given a binding commitment to subscribe for the
following numbers of shares in the Fundraising:
-- Edward Bowie (independent Non-Executive Director and Chairman
of the board) - 64,000 Subscription Shares;
-- Andrew Chubb (independent Non-Executive Director) - 129,000 Subscription Shares;
-- Robert Monro (Chief Executive Officer and a Director) - 182,000 Subscription Shares; and
-- Paul Quirk (Non-Executive Director) - 1,820,000 Subscription
Shares, being through Key Ventures which is wholly owned and
controlled by First Island Trust Company Limited as Trustee of The
Sunnega Trust, a discretionary trust with a broad class of
potential beneficiaries. Paul Quirk is a potential beneficiary of
The Sunnega Trust.
On Admission certain substantial shareholders of the Company
will hold the following numbers of Ordinary Shares:
-- Brookstone will be the registered holder of 71,260,025
Ordinary Shares, representing approximately 28.99 per cent. of the
issued share capital of the Company on Admission. Brookstone is
wholly owned and controlled by First Island Trust Company Limited
as Trustee of the Nodo Trust, a discretionary trust with a broad
class of potential beneficiaries. Patrick Quirk, the father of Paul
Quirk (a Non-Executive Director of the Company), is a potential
beneficiary of the Nodo Trust; and
-- Lord Farmer will be the registered holder of 35,190,536
Ordinary Shares, representing approximately 14.32 per cent. of the
issued share capital of the Company on Admission.
Relationship Agreement
On 18 March 2020 Brookstone, Key Ventures and Paul Quirk
(collectively the 'Investors') entered into a Relationship
Agreement to regulate the relationship between the Investors and
the Company on an arm's length and normal commercial basis. In the
event that Investors' aggregated shareholdings becomes less than 30
per cent. then the Relationship Agreement shall terminate. As at
the date of this news release the Investors' aggregated
shareholdings were 31.61 per cent. of the issued share capital of
the Company. On Admission the Investors' revised aggregated
shareholdings will be 34.55 per cent. of the issued share capital
of the Company.
Revised shareholdings following Admission
On Admission, the revised shareholdings of the following
directors and substantial shareholders will be:
Current shareholding Subscription Shareholding Percentage
Shares on Admission of enlarged
issued share
capital
Brookstone Business Inc 53,060,025 18,200,000 71,260,025 28.99%
--------------------- ------------- -------------- --------------
Lord Farmer 29,410,536 5,780,000 35,190,536 14.32%
--------------------- ------------- -------------- --------------
Key Ventures Holding
Ltd plus Paul Quirk
(Non-Executive Director) 11,854,689 1,820,000 13,674,689 5.56%
--------------------- ------------- -------------- --------------
Edward Bowie
(Non-Executive Director) 361,510 64,000 425,510 0.17%
--------------------- ------------- -------------- --------------
Andrew Chubb
(Non-Executive Director) 210,526 129,000 339,526 0.14%
--------------------- ------------- -------------- --------------
Robert Monro
(Director) 1,546,896 182,000 1,728,896 0.70%
--------------------- ------------- -------------- --------------
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.
**S**
For further information, please visit http://www.coragold.com or
contact:
Bert Monro / Norm Bailie Cora Gold Limited +44 (0) 20 3239 0010
Christopher Raggett / Charlie finnCap Ltd
Beeson (Nomad & Joint Broker) +44 (0) 20 7220 0500
------------------------- ---------------------
Turner Pope Investments
Andy Thacker / James Pope (Joint Broker) +44 (0) 20 3657 0050
------------------------- ---------------------
Susie Geliher / Isabel de St Brides Partners
Salis (Financial PR) +44 (0) 20 7236 1177
------------------------- ---------------------
Notes
Cora is a gold company focused on two world class gold regions
in Mali and Senegal in West Africa. Historical exploration has
resulted in the highly prospective Sanankoro Gold Discovery, in
addition to multiple, high potential, drill ready gold targets
within its broader portfolio. Cora's primary focus is on further
developing Sanankoro in the Yanfolila Gold Belt (southern Mali),
which Cora believes has the potential for a standalone mine
development. Sanankoro has a positive Scoping Study published on it
showing an 107% IRR and US$41.5m NPV(8) at a US$1,500 gold price.
Cora's highly experienced management team has a proven track record
in making multi-million-ounce gold discoveries, which have been
developed into operating mines.
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