TIDMSULA

RNS Number : 2419T

Sula Iron & Gold PLC

11 October 2017

Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources

11 October 2017

Sula Iron & Gold plc

("Sula" or the "Company")

Issue of Equity

Sula (AIM: SULA), the gold exploration company focused on Sierra Leone, is pleased to announce that it has issued 152,977,298 new ordinary shares ("Ordinary Shares") to Equity Drilling Limited ("Equity"), the Company's drill contractor in final settlement for its recently completed Phase 3 drilling of 5,184 metre on its Ferensola gold project.

As previously announced, part the drilling contract that the Company entered into with Equity provided for 50 per cent. of the costs to be settled through the issue of new Ordinary Shares. The issue of the Ordinary Shares represents the final payment under this drill contract. Accordingly, Sula will issue 152,977,298 new Ordinary Shares to Equity based upon a price of 0.1p. The issue of these shares represents approximately half of the element of the drilling contract.

Accordingly, application will be made for the new Ordinary Shares to be admitted to trading on AIM ("Admission") 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 13 October 2017. The new Ordinary Shares will represent approximately 4.9 per cent. of the Company's 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 Admission, the Company's Enlarged Share Capital will comprise 3,271,746,363 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.

*ENDS**

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 
  Blytheweigh (Public Relations)    +44 (0) 20 3005 5000 
  Camilla Horsfall/ Nick Elwes       +44 (0) 20 7138 3224 
 Ongeza Mining (Financial 
  and Technical Adviser) 
 Iain Macpherson / Ilja Graulich    +27 (0) 11 469 0629

Notes:

Sula Iron & Gold plc is a gold focused exploration company in West Africa. The Company's main objective is to explore and advance its 153km(2) Ferensola Project in Northern Sierra Leone. In June 2015, the Company defined a JORC Exploration Target on its Ferensola Gold Project. The Exploration Target centres on Sanama Hill, with a tonnage range of between 5 and 7 million tonnes ("Mt"), grading at between 4 and 8 g/t Au, which equates to between 0.8 and 1.5 million ounces ("Moz") Au. The Exploration Target was restricted to a 2km strike length segment of the regional fold belt that is believed to extend for over 10km.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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October 11, 2017 02:00 ET (06:00 GMT)

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