TIDMPOL
RNS Number : 5165G
Polo Resources Limited
30 May 2017
30 May 2017
Polo Resources Limited
("Polo" or the "Company")
CELAMIN HOLDINGS NL - INVESTMENT UPDATE
Polo Resources Limited (AIM: POL), the multi-sector investment
company with interests in oil, gold, coal, copper, phosphate,
lithium, iron and vanadium, notes that its investee company,
Celamin Holdings NL (ASX: CNL), has issued an update stating that
it is undertaking a capital raising of AUD$1,050,000 which will
provide it with funding to pursue the Arbitration of its dispute
with its joint venture partner through to determination, other
legal actions in Tunisia and for general working capital
purposes.
The full unedited text of that announcement is reproduced
below.
For further information, please contact:
Polo Resources Limited
Kudzayi Denenga, Investor
Relations +27 (0) 787 312 919
ZAI Corporate Finance Ltd
(nominated adviser)
Ray Zimmerman, John Treacy +44 (0) 20 7060 2220
Liberum Capital (broker)
Henry Freeman +44 (0) 20 3100 2000
Blytheweigh (public relations)
Tim Blythe, Nick Elwes, Camilla
Horsfall +44 (0) 207 138 3204
About the Company
Polo Resources Limited is a natural resources investment company
focused on investing in undervalued companies and projects with
strong fundamentals and attractive growth prospects. For further
details on Polo, please refer to: www.poloresources.com.
CELAMIN HOLDINGS NL
Funding Update
Celamin Holdings NL (ASX: CNL) (Celamin, the Company) is pleased
to announce a capital raising of AUD$1,050,000 which will provide
it with funding to pursue the Arbitration of its dispute with its
joint venture partner through to determination, other legal actions
in Tunisia and for general working capital purposes.
The Company has received placement applications from
sophisticated investor clients of Patersons Securities Limited
(Patersons) for the placement of 350,000,000 Shares at an issue
price of 0.1 cents per Share together with one free attaching 3
year 0.2 cent option for every two Shares subscribed for (New
Options), raising AUD$350,000, together with applications from each
of its two major shareholders: African Lion 3 Limited (AFL) and
Polo Resources Limited (Polo) to subscribe for 350,000,000 Shares
and 175,000,000 New Options on the same terms, raising a further
AUD$350,000 from each of AFL3 and Polo and bringing the total
amount raised to AUD$1,050,000. (Placement). Patersons will be paid
a 6% fee on the funds contributed by their clients.
The Placement is to be undertaken in two tranches as
follows:
(a) the First Tranche being the issue of 148,975,050 Shares to
sophisticated investors pursuant to the Company's 15% placement
capacity under Listing Rule 7.1, to raise AUD$148,975.05 which was
completed on 30 May 2017; and
(b) the Second Tranche being the issue of the balance Shares and
New Options under the Placement, following shareholder approval at
a general meeting of the Company to be held on 3 July 2017 (General
Meeting).
A notice of general meeting will be sent to shareholders on or
about Friday 2 June 2017.
The Company intends to offer its shareholders the opportunity to
subscribe for Shares and New Options on the same terms as the
Placement by way of a rights issue (Proposed Rights Issue). The
Company will commence preparation of the prospectus required for
the Proposed Rights Issue after the General Meeting and will keep
Shareholders informed on the terms and timing of the Proposed
Rights Issue as this preparation progresses.
Until March 2015, the Company had been focused on the
exploration and development of the Chaketma Phosphate Project in
Tunisia. The Chaketma Phosphate Project in Tunisia, is operated by
a joint venture company, Chaketma Phosphate SA (CPSA), in which the
Company's wholly-owned subsidiary, Celamin Limited, held a 51%
interest and its Tunisian partner, Tunisian Mining Services (TMS)
held a 49% interest.
On 3 March 2015 the Company was advised that Celamin Limited's
shares in CPSA had been transferred to TMS on 13 February 2015.
Celamin requested a voluntary trading halt on its shares from
trading on ASX on 4 March 2015. The shares have been suspended from
trading on ASX since that time.
Celamin Limited remains in dispute with TMS regarding ownership
and control of CPSA and as previously announced is pursuing various
legal processes to resolve this situation (Dispute). These
processes include international arbitration (Arbitration) by a sole
arbitrator (Arbitrator) appointed by the International Court of
Arbitration of the International Chamber of Commerce. In the
Arbitration, Celamin Limited is seeking preservation and
recognition of its rights, including restitution of its shares in
CPSA and compensation for damages suffered.
A final hearing of the Dispute by the Arbitrator is to be held
in June 2017 and a decision of the Arbitrator is expected before
the end of the year.
Since the Dispute first surfaced, the Company instituted a cash
conservation program until its resolution including deferral of all
non-executive director fee payments; reduction in staffing;
including the managing director; and minimisation of
administration, office and other corporate expenditure
payments.
On 20 June 2016, the Company announced it had secured a loan
facility from each of its two major shareholders, AFL3 and Polo, to
provide Celamin with the liquidity to continue the arbitration,
legal actions in Tunisia, and for general working capital
purposes.
These loan facilities have been fully drawn down and the Company
requires additional funding to pursue the Arbitration through to
determination, to fund the Arbitration and legal actions in Tunisia
and for general working capital purposes.
The terms and conditions of the Placement require that the
Company:
-- convert all money owing under the AFL3 and Polo loan facilities to equity;
-- reduce liabilities for directors' fees by seeking agreement
of directors to convert those fees to equity; and
-- reduce liabilities for the fees for services of Key
Management Personnel by conversion of all or part of those fees to
equity, by the issue of Shares at an issue price of 0.3 cents per
Share (being three times the issue price of Shares under the
Placement and the Proposed Rights Issue) and the issue of one free
attaching New Option for every two Shares issued.
The Notice of the General Meeting will include resolutions
seeking shareholder approval for the conversion of the loan
facilities and issue of shares to directors and Key Management
Personnel to satisfy these conditions.
The funds raised from the Placement will be used to pursue the
arbitration through to determination, to fund the arbitration and
legal actions in Tunisia, and for general working capital
purposes.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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