Sula Iron & Gold PLC Subscription to raise £0.4 million (2473I)
June 15 2017 - 10:22AM
UK Regulatory
TIDMSULA
RNS Number : 2473I
Sula Iron & Gold PLC
15 June 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.
15 June 2017
SULA IRON & GOLD PLC
("Sula" or the "Company")
Subscription to raise GBP0.4 million
Sula (AIM: SULA), the gold exploration company focused on Sierra
Leone, is pleased to announce that it has conditionally raised
GBP0.4 million from a subscription for 160,000,000 new ordinary
shares of 0.1p each in the Company ("Ordinary Shares") (the
"Subscription Shares") at an issue price of 0.25p per share (the
"Subscription Price") through a direct subscription with a targeted
small number of new investors, (together the "Subscription").
The Subscription Price represents a discount of approximately
6.7 per cent. to the Company's closing middle market share price of
0.268p on 14 June 2017.
The Subscription has been undertaken to a targeted small number
of new investors who want to support the growth of the Company as
it continues to de-risk and develop the Ferensola Project.
In addition to the Subscription Shares, 160,000,000 warrants
will also be granted to the subscribers on a one-for-one basis
providing the subscribers with a right to subscribe for one further
new Ordinary Share at a price of 0.35p per Ordinary Share during an
exercise period commencing on the date of Admission of the
Subscription Shares to trading on the AIM Market of the London
Stock Exchange ("AIM") and ending thirty-six months thereafter (the
"Warrants").
Use of Proceeds
The net proceeds of the Placing will primarily be used:
-- to complete the current diamond drilling programme at Sula's
Ferensola gold project both 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 and also at
Sula's recently discovered new gold-bearing area the Southern
Target where three boreholes have hit gold, including a recent
intersection of 5.2g/t over 1.22m
-- At Sanama Hill this ongoing drill programme will aim to
infill and extend the areas of known high grade mineralisation and
to improve the confidence in the geological interpretation and
support a more accurate determination of the contained gold.
-- for other potential regional exploration programmes; and
-- for general working capital purposes
Details of the Subscription
The Issue of the Subscription Shares is conditional upon receipt
of the GBP0.4 million Subscription proceeds by the Company
("Proceeds"), which is expected to have occurred on or before the
close of business on 19 June 2017, and upon their admission to
trading on AIM ("Admission"). The Company will make application for
Admission of the New Ordinary Shares in due course and will update
the market once the Proceeds have been received. Once issued, the
Subscription Shares will represent approximately 6.6 per cent. of
the Company's share capital as enlarged by the Subscription Shares
(the "Enlarged Share Capital").
The Subscription 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 Subscription, the Company's Enlarged
Share Capital will comprise 2,427,120,672 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:
"I'm delighted with this support from a series of professional
and high net worth investors. It is also pleasing that this direct
subscription was oversubscribed and as such there were no fees
payable by the Company.
We look forward to updating the market with assay results from
the ongoing drill campaign in the coming weeks."
For further information, please contact:
Sula Iron & Gold plc
Roger Murphy (CEO) +44 (0) 20 7583 8304
WH Ireland Limited (Nominated
Adviser and Broker)
Paul Shackleton / James
Bavister +44 (0) 20 7220 1666
VSA Capital Limited (Broker)
Andrew Raca +44 (0) 20 3005 5000
Ongeza Mining (Financial
and Technical Adviser)
Iain Macpherson / Ilja Graulich +27 (0) 11 469 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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