TIDMEST
RNS Number : 8472X
East Star Resources PLC
10 January 2022
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES,
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JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OF SUCH JURISDICTION.
10 January 2022
East Star Resources Plc
("East Star" or the "Company")
Re-Admission to the London Stock Exchange
East Star, the Kazakhstan-focused gold and copper explorer, is
pleased to announce that it has raised gross proceeds of GBP3.1
million by way of an oversubscribed placing and subscription of
62,000,000 new shares at a price of 5p, and has today been
readmitted to the Official List of the Financial Conduct Authority
by way of a Standard Listing following its acquisition of 100% of
the share capital of Discovery Ventures Kazakhstan Limited ("DVK")
(the "Acquisition"). As a result of the Acquisition, East Star now
owns 100% of DVK.
Trading in the Company's shares will recommence trading at 8.00
a.m. today on London Stock Exchange's Main Market for listed
securities under the ticker 'EST' (ISIN: GB00BN92HZ16).
With effect from today, Mr Charles Wood resigns as a Director of
the Company and Mr Alex Walker and Mr David Minchin join the Board
of Directors of the Company.
Highlights
-- Oversubscribed placing and subscription raising gross proceeds of GBP3.1 million
-- Re-admission to London Stock Exchange following acquisition of DVK
-- DVK holds initial package of four licences in two producing
but underexplored mineral belts in Kazakhstan.
o Chu-Ili belt - high grade historic samples, prospective for
gold and copper
o Rudny Altai belt - copper-zinc potential, in heart of
high-grade volcanic massive sulphide belt
-- Results from initial 3,127m of drilling and 739 km(2) of magnetic survey due in Q1
-- New mineral law (2018) modelled on Western Australia
-- Licences will be held in 80/20 Joint Venture established together with state mining company
-- CEO based full time in Kazakhstan, supported by experienced local team
-- Established logistics
-- Access to historic data and local technical expertise
Alex Walker, Chief Executive Officer, commented:
"Kazakhstan today is like having all of Western Australia
available to peg but in the 1970s. The size is almost the same, the
mineral law is modelled on Western Australia's, and the deposits
discovered are high grade and highly profitable.
Our first mover advantage has enabled us to secure exceptional
tenements where there is already evidence of mineralisation close
to surface but where the potential for discoveries under cover
using modern geophysics is incredibly exciting.
We believe all our projects have large mineral potential without
large mine requirements, and Kazakhstan's existing infrastructure
and operating costs mean a low economic threshold for development.
I have based myself full time in Kazakhstan to drive forward what I
believe represents a once in a generation opportunity in the mining
sector.
I am delighted to bring the Company to the Main Market of London
Stock Exchange today following an oversubscribed fundraising which
will enable us to pursue an intensive exploration programme over
the coming months and years. We will waste no time, with the first
set of drilling results due this quarter, and an expectation that
we will be operational in the field throughout the year."
For further information visit the Company's newly launched
website at www.eaststarplc.com , or contact:
East Star Resources Plc
Alex Walker, Chief Executive Officer
Tel: +44 (0)20 7390 0234 (via Vigo Consulting)
Peterhouse Capital Limited (Corporate Broker and Placing
Agent)
Duncan Vasey / Lucy Williams
Tel: +44 (0) 20 7469 0930
Vigo Consulting (Investor Relations)
Ben Simons / Oliver Clark
Tel: +44 (0)20 7390 0234
About East Star Resources Plc
East Star Resources is focused on the discovery and development
of gold, copper, and base metals in Kazakhstan. With an initial
four licences covering 1,432 km(2) in two mineral rich belts, East
Star is undertaking an intensive exploration programme, applying
modern geophysics to discover gold, copper, and base metals in
levels that were not explored in the Soviet era. The Company also
intends to expand its licence portfolio in Kazakhstan. East Star's
management are based permanently on the ground, supported by local
expertise, and a joint venture with the state mining company.
Follow us on social media:
LinkedIn:
https://www.linkedin.com/company/east-star-resources/
Twitter: https://twitter.com/EastStar_PLC
Kazakhstan - Current Events
On 5 January 2022, the Kazakhstan Government declared a two-week
state of emergency, as a result of political unrest and
anti-government protests.
The Collective Security Treaty Organisation (CSTO) subsequently
announced that a group of peacekeeping forces, led by Russia, would
be dispatched to Kazakhstan to help the Kazakhstan Government
maintain peace and order in the region. On 7 January 2022, the
President of Kazakhstan declared that constitutional order had
mainly been restored in all regions of the country.
The Board is continuing to review and monitor the situation in
Kazakhstan. The Directors do not believe that the current situation
in Kazakhstan is likely to have any adverse impact upon the
Company's proposed operations or its intended strategy, but it will
issue further announcements should circumstances change.
Background to and reasons for the Acquisition and Strategy
East Star was admitted to the standard listing segment of the
Official List on 4 May 2021, having raised gross proceeds of
approximately GBP2 million to pursue its strategy. The Company was
formed to undertake one or more acquisitions of a majority interest
in a company, business, or asset with a focus upon opportunities in
the natural resources sector.
On 19 July 2021, the Company announced the proposed acquisition
of DVK, which has today been completed, following an oversubscribed
placing and subscription of 62,000,000 new shares at a price of 5p
raising gross proceeds of GBP3.1 million.
DVK was formed with the purpose of identifying and developing
gold and base metals projects in prospective regions of Kazakhstan.
Kazakhstan has a rich mining history for gold and base metals but
is relatively underexplored and has lacked modern exploration since
independence from the Soviet Union. The Board believes the
potential exploration and development opportunities offered by the
Company's projects has the potential to generate significant value
for shareholders.
The Company's strategy is built on three main pillars:
-- Identify highly prospective exploration ground and
brownfields projects by its technical team in known mineral
districts with demonstrated historical exploration success and
limited application of modern exploration techniques
-- Develop proven and out-of-the-box concepts for potential
mineral targets and efficiently conduct exploration by application
of state-of-the-art methods and equipment
-- Partner with existing companies via joint venture or farm-in
DVK's management combines a successful team of corporate,
technical, and commercial professionals with an excellent
international track record. DVK and the national mining company,
Tau-Ken Samruk ("TKS"), formed a joint venture which initially
covers four mineral exploration licences totalling 1,432 km(2) ,
across two mineral districts: the Chu-Ili Belt, with its endowment
of orogenic and intrusion-related gold deposits; and the Rudny
Altai Belt with world-class VMS deposits.
In the Chu-Ili Belt, historically gold mineralisation was
discovered either by soil sampling or quartz sampling from the
surface as grab/chip samples from float material, outcrops, or
weathered crust (eluvium). Some substantial and high-grade deposits
were uncovered using these methods including
the Akbakay mining complex containing more than six million
ounces. By targeting areas of existing known high-grade
mineralisation based on historical reports, and adding modern
exploration techniques including magnetics surveys, the Company
expects to realise the potential of these existing areas and
uncover additional data to target new areas in the region.
In the Rudny Altai VMS belt, the majority of VMS deposits in the
region were initially found during historical exploration due to
their surface appearance as outcrops of mineralised rocks and
geochemical soil anomalies related to shallow targets, covered by
thin overburden. The Company expects to use geophysical surveys
such as electromagnetic, gravity and IP to target anomalies without
a surface expression or from previous mines on the licence that
were discontinued as the ore body could not be followed at
depth.
With full time in-country management, East Star expects to grow
its portfolio by pegging additional ground and farming into
licences with credible historical data that show promise for
economic deposits.
Board and Key Management
Alexander ("Sandy") Barblett, Non-Executive Chairman
Sandy Barblett has over 20 years' experience working with
private and public listed international companies. He sits as a
director and advises companies both private and listed on AIM and
the ASX in
relation to raising private equity and general fund raising,
admission onto public markets, strategy and management selection.
Additionally, he has previously held senior leadership roles within
the technology sector, most notably with former FTSE 250 company
Pace Plc. Mr Barblett has a Bachelor of Business from Curtin
University of Technology in Perth, Australia and a Bachelor of Laws
from the University of Queensland; he previously worked for Minter
Ellison as a solicitor.
Alex Walker, Chief Executive Officer
Alex Walker is an investment banker and resources executive with
more than 14 years' experience in
natural resources investment with Norwegian Bank, Pareto
Securities, London-based investment bank, Brandon Hill Capital, and
Australian broking firm Patersons Securities. Mr Walker co-founded
and was the General Manager of ScandiVanadium Ltd. He was also
involved in the process of listing ScandiVanadium Ltd on the
Australian Securities Exchange. Mr Walker holds a MSc in Mineral
and Energy Economics from Curtin University of Technology, Graduate
Diploma of Applied Finance, BComm, BSocSci, and is a Graduate of
the Australian Institute of Company Directors.
Anthony Eastman, Non-Executive Director
Anthony Eastman is a member of the CAANZ and ICAEW and a Partner
at Orana Corporate LLP. Mr Eastman has a number of years'
experience in financial management and corporate advisory services,
primarily in the natural resources sector, along with extensive
experience in the public company environment, having been a
director and company secretary of a number of ASX and AIM junior
mining and oil and gas focused companies. He has previously worked
with Ernst & Young and CalEnergy Gas Ltd, a subsidiary of the
Berkshire Hathaway Group of Companies in both Australia and the
United Kingdom.
David Minchin, Non-Executive Director
David Minchin is a geologist with over 15 years' experience in
production, exploration, and resource
investment. Mr Minchin has worked for Rio Tinto and the British
Geological Survey, as well working as Senior Exploration Geologist
for ICL-Boulby where he was closely involved in the discovery of
the 3.2 billion tonne polyhalite deposit that was subsequently put
into production and extended operating mine life by over 30 years.
Mr Minchin has worked as Director of Geology for AMED Funds, a
London based private equity group that focuses on exploration
projects in Africa. In this role, Mr Minchin was part of the team
responsible for investing and monitoring approximately USD 450
million in projects from exploration through to feasibility and
across a range of commodities. Mr Minchin is currently CEO of
Helium One Global Limited, an AIM quoted company developing a
significant primary helium project in Tanzania and was formerly
Managing Director of ASX-listed ScandiVanadium.
Key Management
Azamat Bizhanov, Geologist
Azamat Bizhanov is an exploration and resource geologist with
more than ten years' experience. Previously he served as the
Kazakhstan Exploration Manager for Freeport-McMoran where he was
involved in identifying and evaluating porphyry copper
opportunities in Kazakhstan and Mongolia. Azamat has a successful
background in the execution of both greenfield and brownfield
exploration programmes in Kazakhstan - in particular he was
involved in the implementation of geological and resource modelling
at the largest uranium project in South Kazakhstan. Azamat is a
Registered Professional Geoscientist and a Member of the Australian
Institute of Geoscientists.
Concert Party
The Concert Party comprises the Sellers of DVK set out in the
table below, who are presumed to be acting in concert under the
City Code. The maximum potential interest of the Concert Party in
the voting rights of the Company is as follows:
Member No. of Total Admission No. No. Maximum number Total Shares
of Concert Consideration Shares held Performance Management of Ordinary as a
Party Shares by the Sellers Shares Options Shares (assuming Percentage
and Placing as a the issue of the
Shares percentage of the Company's
subscribed of the Performance share
for as part Enlarged Shares capital following
of Ordinary and the exercise such issue
Fundraise Share Capital of the Management and
("Admission on Admission Options by exercise
Shares") Mr. Walker) (assuming
("Total Shares") that no other
Shares are
issued)
Alexander
Casey Walker 20,024,522 11.0 31,874,202 8,000,000 59,898,724 23.6
-------------- --------------- ------------ ----------- ------------------ ------------------
Reedbuck
Nominees
Pty 9,762,261 5.4 15,937,102 - 25,699,363 10.1
-------------- --------------- ------------ ----------- ------------------ ------------------
Rainer
Heinz Ellmies 9,762,261 5.4 15,937,102 - 25,699,363 10.1
-------------- --------------- ------------ ----------- ------------------ ------------------
Reedbuck Nominees Pty Ltd is a private company registered in
Australia as trustee for the Eilistraee No. 2 Trust, of which
Melvin Yeo is sole director and a beneficiary.
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END
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