TIDMPATH
RNS Number : 4297N
Path Investments plc
18 January 2019
18 January 2019
Path Investments plc
("Path" or the "Company")
Heads of Agreement
Path Investments plc (TIDM: PATH) is pleased to announce that
the Company has entered into a Heads of Agreement with ARC
Marlborough Pty Limited ("ARC") regarding the proposed acquisition
of ARC by the Company (the "Proposed Transaction").
ARC is a privately owned, Australian incorporated company, that
owns a mining tenement situated in Central Queensland, Australia.
ARC has relevant government approvals to mine Nickel, Cobalt and
Chrysoprase at this tenement.
ARC proposes to develop its Nickel and Cobalt project (the
"Project") with the intention of producing and supplying high grade
and specifically determined nickel and cobalt products for use in
the rapidly expanding battery industry, such as Nickel Sulphate and
Cobalt Sulphate.
To achieve that outcome, the Company proposes to adopt
atmospheric leaching processes such as heap leaching or vat
leaching, or a combination of both, with the intention of
establishing a low cost, low CAPEX operation.
The Project ore is recoverable either at, or near surface, the
resource having a very low strip ratio. In working towards a
positive Project outcome, RF West has produced a Scoping Study in
respect of the Project and which has determined the general
parameters for the Project.
It is now proposed to complete additional confirmatory drilling,
infill drilling, and drilling to depth of about 40 additional drill
holes for the purpose of upgrading the resource and the resource
grades. In addition, it is proposed to carry out bulk sampling and
conduct metallurgical test work and leach tests. Thereafter it is
proposed to proceed with a Pre-Feasibility Study, followed by a
Bankable Feasibility Study on the Project.
The Heads of Agreement
The Heads of Agreement envisages that the Company, by way of a
Purchase Agreement, will acquire 100 per cent. of the equity share
capital of ARC, including all the assets owned by ARC, through the
issue of new ordinary shares of GBP0.001 each in the Company
("Ordinary Shares").
The Company has agreed an exclusivity period with ARC and
expects to enter into a definitive Purchase Agreement on or before
28 February 2019.
Completion of the Proposed Transaction is conditional, inter
alia, on the following:
-- the completion of confirmatory legal, financial and technical due diligence;
-- approval by the necessary authorities to the transfer of ARC's assets to the Company;
-- an appropriate Purchase Agreement being entered into
including customary warranties and representations;
-- any required shareholder consents being obtained (including a
waiver of rule 9 of the City Code on Takeovers and Mergers);
-- in order to provide an appropriate level of working capital
for the enlarged Company following the Proposed Transaction the
Company intends to undertake an equity fundraising ("Placing");
and
-- publication by the Company of a prospectus and readmission of
the Company's Ordinary Shares to trading on the Main Market of the
London Stock Exchange.
Continued Suspension of Trading
If completed, the Proposed Transaction would be classified as a
reverse takeover in accordance with the Listing Rules of the
Financial Conduct Authority. Accordingly, the listing of the
Ordinary Shares on the Standard Listed Segment of the Official List
and trading in the Ordinary Shares on the Main Market of the London
Stock Exchange will remain suspended. If the Proposed Transaction
completes, the Company intends to seek readmission to trading on
the Main Market of the London Stock Exchange.
The parties intend to proceed as quickly as possible with the
Proposed Transaction. However, there can be no certainty that the
Proposed Transaction will be successfully completed.
The Company will make further announcements in due course, as
appropriate.
Christopher Theis, Chief Executive of Path, commented: "We are
delighted to have entered into the Heads of Terms with ARC. We
believe the Proposed Transaction is one that can deliver
significant value for Path shareholders and we look forward to
making further announcements in due course."
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
***ENDS***
For further information:
Path Investments plc
Christopher Theis, Andy Yeo +44 (0) 20 3934 6630
Shard Capital (Financial Adviser and Broker)
Simon Leathers, Damon Heath +44 (0) 20 7186 9900
IFC Advisory (Financial PR & IR)
Tim Metcalfe, Heather Armstrong, Miles Nolan +44 (0) 20 3934 6630
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END
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