TIDMMTL
RNS Number : 3107J
Metals Exploration PLC
08 September 2016
8 September 2016
METALS EXPLORATION PLC
Metals Exploration plc (AIM: MTL) ("Metals Exploration" or the
"Company"), the natural resources exploration and development
company with assets in the Pacific Rim region.
Equity Raising
Metals Exploration is pleased to announce that it has obtained
commitments to raise approximately US $6.4 million (GBP4.85
million) via the issue of a total of 97,002,174 new ordinary shares
of 1 pence each in the Company (the "Placing Shares") at a price of
5.0 pence per new ordinary share, from certain existing
shareholders (the "Placing").
Following the announcement by the Company on 26 August that it
was in discussions with its major shareholders to raise additional
working capital, these discussions have successfully concluded and
the Runruno gold project (the "Project") will have access to US
$6.4 million on or about 13 September 2016.
As explained in the announcement of 26 August 2016, the main
reasons why the Company requires to raise additional finance,
having previously raised US $5 million in a private share placement
in July 2016, are because the debt restructuring process continues
to take longer than expected and because of delays experienced in
realising revenue from the Project.
1. Debt restructuring progress
The debt restructuring process commenced in March 2016. The
process is still ongoing with good progress achieved recently.
Following this progress, it is now expected that the debt
restructuring should be concluded later in September 2016, for the
benefit of all stakeholders. The economic deliverables of the
Project will be realigned with a restructured debt package to
enable the Company to meet its financial obligations to its lenders
in a structure better suited to the Project. Previously reported
time delays experienced on the Project have hindered the Project
from realising sustainable cash flow and, subsequently, to meet its
financial obligations under the current debt package.
A waiver has been agreed with the lenders, which will allow the
repayment of the principal sum due on 30 June 2016 to be repaid on
the earlier of 31 October 2016 or on successfully restructuring the
debt. A principal amount of US $15m was due to be paid on 30 June
2016 and to date US $161k of associated interest has been paid to
the lenders.
2. ISO14001:2015 accreditation
As a requirement of the Mines and Geosciences Bureau (the "MGB")
all operating mining companies in the Philippines are required to
achieve ISO14001 accreditation. The Company is pleased to announce
that the Project has obtained this accreditation and certification
on 23 August 2016.
With the Project having obtained the ISO14001:2015 certificate
of environmental compliance the Project is finalising some
preliminary requirements with the objective of moving towards
commencing the process of exporting its first shipment of gold. A
further announcement will be made in the near future when this has
process has commenced.
3. The Fundraising
The Placing
The Company has received commitments for subscriptions totalling
gross proceeds of US$6.388 million via the issue of 97,002,174 new
issue shares at a price of 5.0 pence per Placing Share. The Placing
Shares are expected to be admitted to trading on AIM at 8.00 a.m.
on 14 September 2016. The Placing Shares have been subscribed for
by; MTL (Luxembourg) Sarl, Runruno Holdings Limited, Baker Steel
Capital Managers LLP (acting on behalf of various Funds for which
it acts as full discretionary Investment Manager), Investec Wealth
& Investment Ltd, Lynchwood Nominees Ltd and HSBC Marking Name
Nominee (the "Subscribers"). No commission is payable on this
transaction.
The subscription price of 5.0 pence per new ordinary share
represents an 11.1 per cent discount to the closing mid-price of
5.625 pence per ordinary share as at 7 September 2016, and a 2.6
per cent discount to the 1-year average closing mid-price of 5.136
pence per ordinary share.
Shareholdings of the Subscribers
The shareholdings of the Subscribers prior to and following the
completion of each stage of the proposed equity Subscription are as
follows (the below calculations assume all ordinary shares set out
below continue to be held by those shareholders):
Shareholders Prior to the Following the
Equity Subscription Equity Subscription
----------------------- ----------------------- -----------------------
Number of % Number of %
shares shares
----------------------- -------------- ------- -------------- -------
MTL (Luxembourg)
entity(1) 868,133,528 48.03 924,685,795 48.55
----------------------- -------------- ------- -------------- -------
Runruno Holdings
Ltd 351,993,065 19.47 374,924,379 19.69
----------------------- -------------- ------- -------------- -------
Baker Steel Capital
Managers LLP(2) 149,907,490 8.29 156,175,609 8.20
----------------------- -------------- ------- -------------- -------
Investec Wealth
& Investment Ltd 119,033,014 6.59 126,033,488 6.62
----------------------- -------------- ------- -------------- -------
Lynchwood Nominees
Ltd 2,633,783 0.15 6,383,783 0.34
----------------------- -------------- ------- -------------- -------
HSBC Marking Name
Nominee 5,000,756 0.28 5,500,756 0.29
----------------------- -------------- ------- -------------- -------
Notes:
1. MTL (Luxembourg) entity includes MTL Luxembourg
Sarl and Mrs. Emily Crompton Candy.
2. Baker Steel Capital Managers LLP (acting on
behalf of various Funds for which it acts as
full
discretionary Investment
Manager).
4. Total voting rights
Following Admission of the Shares the Company's enlarged issued
share capital will comprise 1,904,436,469 ordinary shares. The
Company does not hold any ordinary shares in treasury. Therefore,
the total number of ordinary shares in the Company will be
1,904,436,469. This figure may 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 and Transparency Rules.
Ian Holzberger, Executive Chairman, commented:
"The Project is in its ramp up stage and it should achieve
design specifications within the next two or three months' period.
During the month of September 2016, the first gold dore export
shipment is eagerly anticipated and will be a precursor to the
Project realising sustainable cash flow out of operations. There
are still some final administrative requirements to be completed
before this can happen. I would like to extend my gratitude and the
gratitude of the Board of Directors to the shareholders for their
understanding and continued support to the Project."
This announcement contains inside information.
For further information please visit or contact
www.metalsexploration.com
+63 (0)
9189 795 Nominated Adviser: STOCKDALE
Ian R. Holzberger 992 SECURITIES Ltd
+61 (0) +44 (0)
418 886 Robert Finlay, Edward 207 601
(Chairman) 165 Thomas 6100
+61 (0)
Liam A. 498 648
Ruddy 615
+44 (0)
(Company 7911 719 Public Relations:
Secretary) 960 TAVISTOCK
+44 (0)
Barnaby Hayward; 207 920
Jos Simson 3150
-------------------- -----------
Broker: SP ANGEL CORPORATE
FINANCE LLP
+44 (0)
203 470
Ewan Leggat 0470
This information is provided by RNS
The company news service from the London Stock Exchange
END
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