Rare Earth Minerals PLC Corporate Update (7632M)
18 October 2016 - 5:00PM
UK Regulatory
TIDMREM
RNS Number : 7632M
Rare Earth Minerals PLC
18 October 2016
Rare Earth Minerals Plc
("Rare Earth Minerals" or "REM")
Conversion of Option over European Metals Holdings and
Conversion of REM Loan Note
Rare Earth Minerals Plc (AIM: REM; OTC: REMMY)) announces that,
further to it announcement on 30 September 2016, it has been issued
2,000,000 new ordinary shares (represented by Chess Depositary
Interests or "CDI's") in European Metals Holdings Limited ("EMH's),
in respect of an exercise of options at AU$0.20 per CDI. REM now
holds a direct interest in 17.64% of EMH's issued share capital. On
3 October 2016, REM announced that it had agreed to invest a
further A$2.6 million into EMH. For this consideration, REM would
be issued 5 million ordinary shares represented by CDI's in EMH at
an issue price of A$0.52 per CDI. The placement is subject to
shareholder approval which will be sought by EMH at their Annual
General Meeting later this month. If approved REM will hold a
direct interest in EMH of 20.84%.
In addition REM has received notification of the conversion
US$500,000 of its US$15 million convertible loan have been
converted into 63,135,020 new ordinary shares in the Company at a
price of 0.65 pence per share.
After this exercise, the outstanding balance of the convertible
loan is US$13.65 million. The convertible loan has an interest rate
of 5%, and the principal is convertible at 0.65 pence which
represent a premium of 5 % over the closing price on 8 August 2016,
the day before the loan note was announced.
Application will be made to the London Stock Exchange to admit
the 63,135,020 new ordinary shares to trading on AIM. Admission of
the new ordinary shares is expected to occur on or around 24
October 2016. The new ordinary shares will rank pari passu with the
existing ordinary shares.
For the purpose of the Disclosure and Transparency Rules,
following the issue of shares detailed above the enlarged issued
share capital of the Company will comprise 7,690,025,689 ordinary
shares with no Ordinary Shares held in treasury. Therefore the
above figure of 7,690,025,689 may be used by shareholders as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in Rare Earth Minerals under the FCA's Disclosure and
Transparency Rules.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Rare Earth Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (Nomad & Broker) +44 (0) 207 220 1666
James Joyce
James Bavister
Square1 Consulting +44 (0) 207 929 5599
David Bick
Brian Alexander
.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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