Atalaya Mining PLC Issue of Equity - Buyout of Rumbo Royalty (7926K)
13 April 2018 - 4:00PM
UK Regulatory
TIDMATYM
RNS Number : 7926K
Atalaya Mining PLC
13 April 2018
13 April 2018
Atalaya Mining Plc
("Atalaya" or the "Company")
Issue of Equity - Buyout of Rumbo Royalty
Atalaya Mining plc (AIM:ATYM, TSX:AYM) is pleased to announce
the issue of equity to buy out the royalty agreement with Rumbo
5.Cero, S.L. ("Rumbo").
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 for ten years up to a maximum
amount of US$10,000,000.
Following the announcement on 13 February 2018 where Atalaya
announced the issuance of new ordinary shares in the Company to
satisfy the two first instalments due under the Royalty Agreement,
Atalaya has agreed with Rumbo to buy the Royalty Agreement for a
total consideration of US$4,750,000 to be paid through the issuance
of 1,600,907 new ordinary shares of 7.5p in the Company ("Rumbo
Shares"). The shares have been issued at the 30-day volume weighted
average price (the "Calculation Period") of 211.8p per share and
using the average US$ to GBP exchange rate for the Calculation
Period of 1.4008. The Company has also agreed to pay the VAT
associated with the transaction through a cash payment of
US$997,500 to Rumbo, which is recoverable by Atalaya upon an
ordinary course application for a VAT reclaim from the Spanish tax
authorities.
Admission of New Ordinary Shares to Trading
Application has been made for the Rumbo Shares to be admitted to
trading on AIM (the "Admission") and admission of the Rumbo Shares
to trading is expected to commence on or around 18 April 2018.
Following the issue of the Rumbo Shares, the total number of
Ordinary Shares in issue will be 137,076,557. 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
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