Sula Iron & Gold PLC Placing to raise approximately £0.5 million gross (3314Z)
March 14 2017 - 2:00AM
UK Regulatory
TIDMSULA
RNS Number : 3314Z
Sula Iron & Gold PLC
14 March 2017
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR
JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.
This announcement does not constitute a prospectus or offering
memorandum or an offer in respect of any securities and is not
intended to provide the basis for any investment decision in
respect of Sula Iron & Gold Plc or other evaluation of any
securities of Sula Iron & Gold Plc or any other entity and
should not be considered as a recommendation that any investor
should subscribe for or purchase any such securities.
14 March 2017
Sula Iron & Gold plc
("Sula" or the "Company")
Placing to raise approximately GBP0.5 million gross
Sula (AIM: SULA), the gold exploration company focused on Sierra
Leone, is pleased to announce that it has conditionally raised
approximately GBP0.5 million (before expenses) through a placing by
VSA Capital Limited and Madini for, in aggregate, 128,594,765 new
ordinary shares of 0.1p each in the Company ("Ordinary Shares")
(the "New Ordinary Shares") at an issue price of 0.40p per share
(the "Issue Price") (the "Placing").
The Issue Price represents a discount of approximately 13.0 per
cent. to the Company's closing middle market share price of 0.46p
on 13 March 2017.
The Placing has been targeted at a small number of investors,
including two existing shareholders and a strategic long-term
investor from Asia, who are seeking to support the growth of the
Company as it continues to de-risk and develop the Ferensola
Project.
Use of Proceeds
The net proceeds of the Placing will primarily be used:
-- to extend ongoing diamond drilling at Sula's Ferensola gold
project both at Sula's high conviction Eastern Target and at Sanama
Hill, which already hosts a JORC Compliant Exploration Target of
5-7Mt at a grade of between 4.0-8.0g/t for between 0.8-1.5Moz of
contained gold;
-- to assess potential drilling of Sula's 4.5km of strong
Induced Polarisation ("IP") anomalies beyond the current drill
programme;
-- for other potential regional exploration programmes; and
-- for general working capital purposes.
Details of the Placing
The New Ordinary Shares have been issued conditional upon their
admission to trading on AIM ("Admission"). The Company has made
application for Admission of the New Ordinary Shares and it is
expected that Admission will become effective and that dealings in
the New Ordinary Shares will commence at 8.00 a.m. on 17 March
2017. The New Ordinary Shares represent, in aggregate,
approximately 5.8 per cent. of the Company's share capital as
enlarged by the Placing (the "Enlarged Share Capital").
The New Ordinary Shares will rank pari passu in all respects
with the Company's existing Ordinary Shares and will be issued
fully paid.
Following completion of the Placing, the Company's Enlarged
Share Capital will comprise 2,214,695,198 Ordinary Shares. This
figure may be used by shareholders as the denominator for the
calculations by which they may determine if they are required to
notify their interest in, or a change to their interest in, the
Company under the Financial Conduct Authority's Disclosure and
Transparency Rules.
Roger Murphy, Chief Executive Officer of Sula, commented:
"We are delighted to welcome a new strategic long-term investor
from Asia, seeking to support the Company as it continues to grow.
It is also pleasing that two existing long-term investors have
increased their interests in the Company at a 90 per cent. premium
to their previous investment. The Board believes that this Placing
is a particularly strong endorsement of the Company's strategy at
Ferensola. With two drill rigs and associated equipment now on-site
and drilling at the Ferensola Project under way, the Company is in
a strong position to expand on its originally planned exploration
programme of 2,400m, potentially enabling a larger JORC Exploration
Target to be identified"
For further information, please visit www.sulaironandgold.com or
contact:
Sula Iron & Gold plc +44 (0) 20 7583
Roger Murphy, CEO 8304
VSA Capital Limited (Financial
Adviser and Corporate Broker)
Andrew Monk
Andrew Raca +44 (0) 20 3005
Justin McKeegan 5000
Strand Hanson Limited (Financial
and Nominated Adviser)
James Harris
Matthew Chandler +44 (0) 20 7409
James Dance 3494
Ongeza Mining (Technical Adviser)
Iain Macpherson +27 (0) 11 469
Ilja Graulich 0629
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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