TIDMKENV
RNS Number : 7331V
Kennedy Ventures PLC
01 February 2017
Replacement RNS: Placing to raise GBP1.25m
The following announcement has been made to replace RNS Number
6970V. The correct number of ordinary shares in issue following the
placing will be 189,017,093. All other details remain unchanged.
The correct version of the announcement is below:
1 February 2017
Kennedy Ventures plc
Placing to raise GBP1.25 million
Kennedy Ventures plc ("Kennedy Ventures" or "the Company"), the
AIM quoted investment company, who through its stake in African
Tantalum (Pty) Limited ("Aftan") has an interest in the Tantalite
Valley Mine ("TVM") in Namibia, is pleased to announce that it has
raised GBP1.25 million before expenses through a placing of
13,888,889 new ordinary shares of 1p each ("Ordinary Shares") at a
price of 9p each (the "Placing").
Highlights:
-- Placing to raise gross proceeds of GBP1.25 million through
the issue of 13,888,889 Ordinary Shares at a placing price of 9p
each;
-- Net proceeds of the Placing will be used by Aftan, Kennedy
Ventures' investee company, to implement the plant enhancements
recently identified by Aftan with guidance from the Company's new
CEO Larry Johnson, as previously announced. The funds will enable
the acceleration of these initiatives and ensure the improved
utilisation rates, recoveries and production levels are achieved.
The funds will also be used to:
o Accelerate ongoing lithium studies that, if expected results
are achieved, will open up the Lepidolite orebody and expedite work
relating to other potentially value accretive by-products at TVM;
and
o Provide general working capital:
-- Additional working capital will enable Aftan to ensure
optimal end product performance within the market, through the
continual facilitation of a global negotiation process associated
with generating competitive tension amongst major purchasers;
-- Greater working capital will allow Aftan to implement
industry bench marking initiatives to ensure optimum pricing and
cost efficiency across its entire operation.
-- The Board believes the Placing will deliver added long term
value to Aftan, and ultimately Kennedy, through enabling the
improvements recently identified by Aftan with guidance from CEO
Larry Johnson. Larry Johnson has unrivalled experience in the
global tantalum sector and is laying the foundations for maximum
attraction and extraction of value by Aftan from the TVM.
-- Production will continue throughout the implementation of the
above process. Aftan intends to progressively increase the levels
of blending of newly mined ore stockpiles with older ore stockpiles
for optimization of material through the plant.
Larry F. Johnson, CEO of Kennedy Ventures said:
"TVM represents one of the best quality tantalite mines I have
seen during my long career in the industry. The upgrade and
additional enhancements to the plant are designed to deliver
efficiencies that will generate long-term cash flow benefits to
Aftan and ultimately to the Company. Furthermore, through
discussions with potential purchasers of our product, we are
helping Aftan to ensure that it is in a position of strength for
future years with respect to receiving the optimal price for TVM's
high quality product.
Lithium remains a key focus for Aftan and Aftan is continuing
with its work to support ongoing resource estimation studies,
including trench sampling and metallurgical studies at TVM. These
are expected to result in a maiden lithium resource estimate during
Q2 of this year. In order to further increase the commercial
prospects at TVM, Aftan is studying the technical and commercial
potential for the recovery and sale of by-product minerals (e.g.
mica and feldspar) that can be extracted alongside lithium. Aftan
will consider whether it is economic to process these minerals, to
augment its revenues and contribute to the continued growth of
operations.
I expect 2017 to be a transformational year for Aftan as the
optimisation at TVM completes, Aftan further explores the licence
area and Kennedy assesses new opportunities such as investing in
new purchasing and supply chains for tantalite and other speciality
minerals.
On behalf of the senior management and Board I would like to
thank all existing and new shareholders for their continued
support."
Placing summary
The Placing will raise, in aggregate, GBP1.25 million (before
expenses) through a placing of 13,888,889 new Ordinary Shares (the
"Placing Shares") at a price of 9p per share. The Placing Shares
will be issued under the existing authorities as approved at the
Company's last Annual General Meeting. Completion of the Placing is
conditional only on admission of the Placing Shares to trading on
the AIM Market of the London Stock Exchange ("AIM").
Following admission, the Placing Shares will rank pari passu in
all respects with the Company's existing Ordinary Shares and will
represent approximately 7.3% of the Company's enlarged issued share
capital.
Application has been made for the 13,888,889 Placing Shares to
be admitted to trading on the AIM and it is expected that admission
will take place and trading in the Placing Shares will commence
from 8:00am on 9 February 2017 ("Admission").
Total voting rights
Following Admission, the Company's issued share capital will
consist of 189,017,093 Ordinary Shares, with each Ordinary Share
carrying the right to one vote. The Company does not hold any
Ordinary Shares in treasury. This figure of 189,017,093 Ordinary
Shares may therefore be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change in their
interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information on the Company, visit:
www.kvplc.com:
Kennedy Ventures plc
Larry Johnson (CEO), c/o Tel: +44 (0)203 757
Camarco 4980
Grant Thornton UK LLP (Nominated Tel: +44 (0)20 7383
Adviser) 5100
Colin Aaronson
Richard Tonthat
Daniel Bush
Shore Capital (Broker) Tel: +44 (0) 207
Mark Percy / Toby Gibbs 408 4090
(corporate finance)
Jerry Keen (corporate broking)
Camarco (PR) Tel: +44 (0) 203
Gordon Poole / Billy Clegg 757 4980
This information is provided by RNS
The company news service from the London Stock Exchange
END
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