Atalaya Mining PLC Issue of Equity (6520E)
13 February 2018 - 6:00PM
UK Regulatory
TIDMATYM
RNS Number : 6520E
Atalaya Mining PLC
13 February 2018
13 February 2018
Atalaya Mining Plc
("Atalaya" or the "Company")
Issue of Equity
Atalaya Mining plc (AIM:ATYM, TSX:AYM) is pleased to announce
the issue of equity to satisfy the payment of amounts due under the
royalty agreement with Rumbo and the exercise of options by certain
employees.
Rumbo Royalty
In accordance with the royalty agreement signed in July 2012
between the Company and Rumbo, the former owner of certain plots of
land currently used by Proyecto Riotinto (the "Royalty Agreement"),
and as disclosed in Atalaya's financial information, Rumbo is
entitled to receive a royalty payment of up to US$250,000 per
quarter if the average copper sales price or LME price for the
period is equal to or above $2.60/lb. As such, and given the fact
that the average copper price for the third and fourth quarter of
2017 was above $2.60/lb, the Company is obliged to pay US$500,000
to Rumbo (the "Royalty Payment").
After discussions with Rumbo, both parties have agreed to
satisfy the Royalty Payment through the issuance of 192,540 new
ordinary shares of 7.5p in the Company ("Rumbo Shares"). The Rumbo
Shares have been issued at the volume weighted average price for
the period between 5 February 2018 and 9 February 2018 (the
"Calculation Period") of 186.7p per share and using the average US$
to GBP exchange rate for the Calculation Period of 1.3909.
Rumbo and the Company remain engaged in discussions over how to
satisfy future payments, should they be required as per the Royalty
Agreement.
Employee Shares
The Company has been notified that certain employees have
exercised options over 29,000 ordinary shares of 7.5p in the
Company ("Option Shares").
Admission of New Ordinary Shares to Trading
Application has been made for the Rumbo Shares and the Option
Shares (together the "New Ordinary Shares") to be admitted to
trading on AIM (the "Admission") and the dealings in the New
Ordinary Shares are expected to commence on or around 16 February
2018.
Following the issue of the New Ordinary Shares, the total number
of Ordinary Shares in issue is 135,475,650. The four major existing
shareholders have agreed to waive their contractual pre-emption
rights. This figure may be used by shareholders as the denominator
for calculations to determine whether they are required to notify
their interest in the Company.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Charles Chichester
/ James Ash / James +44 20 7680
Newgate Communications Browne 6550
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+44 20 3170
4C Communications Carina Corbett 7973
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Canaccord Genuity Henry Fitzgerald-O'Connor
(NOMAD and Joint / Martin Davison +44 20 7523
Broker) / James Asensio 8000
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BMO Capital Markets Jeffrey Couch/Neil +44 20 7236
(Joint Broker) Haycock/Tom Rider 1010
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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