TIDMKENV
RNS Number : 2258M
Kennedy Ventures PLC
27 July 2017
27 July 2017
Kennedy Ventures plc
("Kennedy Ventures" or "the Company")
Placing to raise GBP3.75 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 Namibia
Tantalite Investments ("NTI") mine (historically referred to as the
Tantalite Valley Mine) in Namibia, is pleased to announce that it
has raised GBP3.75 million before expenses through a placing of
62,500,000 new ordinary shares of 1p each ("Ordinary Shares") at a
price of 6p each (the "Placing").
HIGHLIGHTS
-- Firm and Conditional placing to raise GBP3.75 million before
expenses through the issue of 62,500,000 new Ordinary Shares at 6p
per share (the "Issue Price")
-- The net proceeds of the Placing will be used by the Company
for upgrades and expansion of the Namibia Tantalite Investments
mine in order to fulfil increasing demand in addition to drilling
and bulk sampling to establish JORC lithium resource and extension
to the life of the NTI mine
-- The upgrade and expansion of the mine will support the
multiyear supply agreement recently signed with a global North
American leading tantalum consumer and end user of our tantalum
ore
Larry Johnson, CEO of Kennedy Ventures commented: "I am very
pleased with the support we have received from our existing and new
shareholders which will allow Aftan to accelerate plans to increase
production as well as increase our tantalum resource and life of
mine and complete a Lithium JORC resource report . Having worked in
the tantalum business for over 35 years, I am confident in my view
that NTI represents one of the finest grade mines globally and
played a part in helping us secure and execute a long term supply
agreement with a global North American leading tantalum consumer
and end user of tantalum ore. NTI is one of the highest grade mines
in the world and following upgrades in H1 2017 we are now capable
of meeting the Customer's grade specifications. The fund raise will
enable Aftan to implement further plant upgrades with the
expectation of ramping up to 30 tonnes per quarter and beyond long
term."
Background, strategy and use of proceeds
On 9 January 2017 the Company announced the appointment of Larry
Johnson as CEO. Mr. Johnson brings a wealth of experience in
tantalite mining having worked in the supply chain throughout his
career in addition to holding key relationships with stakeholders
embedded in the market. On 14 July 2017 Aftan signed a multiyear
supply agreement with a global North American leading tantalum
consumer and end user of tantalum ore ("the Customer").
During H1 CY17, Aftan with the consultation of Kennedy CEO Larry
Johnson, has been implementing important upgrades, testing and
adjustments to the plant, slowing down the production schedule to
establish the optimal grade of concentrate from the plant. This has
taken place in conjunction and discussion with the Customer with
the objective of meeting their world class specifications and
volumes. The result of these upgrades has taken us to world class
grades and into production. Aftan has booked sales of 1 tonne and
continues to ship to the customer as announced and anticipates
those shipments to be continuous.
Demand for Aftan's product continues to exceed current
production. Accordingly, Aftan intends to make critical upgrades to
improve run time efficiency to meet global customer demand which
currently exceeds current plant capability, these include the
purchase of a variety of equipment to increase plant capability
such as a new tornado crusher, fines recovery plant, conveyor
belts, 60m(3) capacity dam upgrades and building screen mesh and
panels. In addition to plant upgrades Aftan intends to enhance the
operational effectiveness of the mine by purchasing winches, water
and air piping, explosives, a dump truck and a mining chute and
platform in addition to other vital items.
Aftan has encountered lithium bearing ores with Lepidolite
pigments located 2km from Homestead and the Tantalum Processing
Plant site. MSA Group, Aftan's competent person, has advised
additional Lithium and Tantalum core drilling to enhance ore body
definition, increase Tantalum resource and life of mine and
complete a Lithium JORC resource report. The net proceeds of the
placing will fund this extended core drilling over a wide range of
sites.
Following the completion of the plant upgrade programme Aftan
expects to increase sales of high grade concentrate with a ramp
plan of between 5 - 10 tonnes per quarter in the short term rising
to 30 tonnes per quarter and beyond thereafter. In addition the
Directors feel confident that the Group can capitalise on other
mineral opportunities as they appear in the region.
Placing and subscription summary
The Placing will raise, in aggregate, GBP3.75 million through a
conditional placing of, in aggregate, 62,500,000 new Ordinary
Shares (the "Placing Shares") at a price of 6p per share (the
"Placing"). The Placing will comprise of a placing of 20,000,000
Placing Shares (the "Firm Placing Shares") to be issued pursuant to
the existing share authorities as approved at the Company's 2016
Annual General Meeting (the "Firm Placing") and 42,500,000 Placing
Shares (the "Conditional Placing Shares") to be issued conditional
upon, inter alia, shareholder approval ("Conditional Placing") at a
general meeting of the Company to be convened for 9.30am on 15
August 2017 (the "General Meeting").
The Placing Shares to be issued will rank pari passu in all
respects with the Company's existing Ordinary Shares and, subject
to shareholder approval, will represent approximately 24.9% of the
Company's enlarged issued share capital, following admission of the
Firm Placing Shares and Conditional Placing Shares.
Application has been made for the 20,000,000 Firm Placing
Shares, pursuant to the Firm Placing, to be admitted to trading on
the AIM Market of the London Stock Exchange ("AIM") and it is
expected that admission will take place and trading in the Firm
Placing Shares will commence from 8:00am on 3 August 2017 ("First
Admission"). Application will be made for the Conditional Placing
Shares, pursuant to the Conditional Placing, to be admitted to
trading on AIM and it is expected that admission will take place
and trading in the Conditional Placing Shares will commence from
8:00am on 16 August 2017 ("Second Admission"), subject to
shareholder approval at the General Meeting.
Total voting rights
Following the First Admission but before the Second Admission,
the Company's issued share capital will consist of 209,017,093
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 209,017,093 Ordinary Shares may therefore be used by
shareholders in the Company, between the dates of First Admission
and Second Admission, 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 ("DTRs").
Following the Second Admission, the Company's issued share
capital will consist of 251,517,093 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 251,517,093
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 DTRs.
Director Participation and Related Party Transaction
Giles Clarke, Chairman of the Company, is to participate in the
Conditional Placing, subscribing for 833,333 Ordinary Shares.
Following the completion of the Placing and Second Admission, and
subject to shareholder approval, Giles Clarke will hold an interest
in 8,899,705 Ordinary Shares (representing 3.5% of the enlarged
issued share capital), and Westleigh Investments Holdings Limited
("WIHL"), a company wholly owned and controlled by Giles Clarke and
Nick Harrison which has not participated in the Placing will
following the completion of the Placing and Second Admission, and
subject to shareholder approval hold an interest in 10,338,095
Ordinary Shares (representing 4.1% of the enlarged issued share
capital). In addition Nick Harrison who has not participated in the
Placing will following the completion of the Placing and Second
Admission, and subject to shareholder approval hold an interest in
7,233,038 Ordinary Shares (representing 2.9% of the enlarged issued
share capital).
The participation by Giles Clarke in the Conditional Placing
constitutes a related party transaction for the purposes of AIM
Rule 13. The Directors (with the exception of Giles Clarke), having
consulted with the Company's nominated adviser, finnCap, consider
that the terms of the related party transaction are fair and
reasonable in so far as shareholders are concerned.
Notice of General Meeting
A General Meeting of the Company will be held at 9:30am on 15
August 2017 at Lakeside, Fountain Lane, St Mellons, Cardiff, CF3
0FB. A notice of the General Meeting has been posted to
shareholders and will shortly be available on the Company's website
at www.kvplc.com.
The business of the General Meeting is to seek the approval of
shareholders to increase the directors' authorities to issue shares
on a non-pre-emptive basis. In the first instance, this authority
will be used to allot and issue the Conditional Placing Shares,
which includes the Ordinary Shares in satisfaction of certain fees
outstanding to Shore Capital Stockbrokers Limited
The Directors recommend that all shareholders vote in favour of
the resolutions. The Company has received irrevocable undertakings
to vote in favour of the resolutions from Directors who hold, or
are interested in, an aggregate of 25,637,505 Ordinary Shares,
representing 13.6 per cent. of the Company's current issued share
capital.
For further information on the Company, visit: www.kvplc.com, or
contact:
Kennedy Ventures plc
Larry Johnson (CEO) Tel: +264 61
228 826
finnCap Ltd (Nominated Adviser) Tel: +44 (0)20
Christopher Raggett / Scott Mathieson 7220 0500
/ Anthony Adams (corporate finance)
Simon Johnson (corporate broking)
Shore Capital (Broker) Tel: +44 (0)
Mark Percy / Toby Gibbs / James Wolfe 207 408 4090
(corporate finance)
Jerry Keen (corporate broking)
Camarco (PR) Tel: +44 (0)
Gordon Poole / Billy Clegg / James 203 757 4980
Crothers
This information is provided by RNS
The company news service from the London Stock Exchange
END
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