TIDMMTL
RNS Number : 0341P
Metals Exploration PLC
14 November 2016
14 November 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 $10.295 million (GBP8.35
million) via the issue of a total of 166,898,117 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
and new shareholders (the "Placing").
1. Background
The Company has chosen to raise additional finance due to
ongoing delays experienced in realising revenue from gold sales and
to provide adequate working capital for the continued ramp-up of
the Runruno processing plant which is proceeding
satisfactorily.
Discussions with the current Project lenders regarding the
rescheduling of the Runruno debt facility is continuing. A further
waiver has been obtained to delay the principal sum of US $15.0
million, previously due on 30 June 2016 to be repaid on the earlier
of 30 November 2016 or on successful rescheduling, to be paid over
the revised principal repayment schedule. To date US $324k of
interest on the deferred principal repayment has been paid to the
lenders and a further US $76k is due to be paid on 30 November
2016.
2. The funding proposal
a. The Placing
The Company has received commitments for subscriptions totalling
gross proceeds of US $10.295 million via the issue of 166,898,117
new ordinary 1.0 pence 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 17 November 2016. The Placing Shares have been
subscribed for by; MTL (Luxembourg) Sarl, Runruno Holdings Limited,
Investec Wealth & Investment Ltd, Jarvis Nominees, Lynchwood
Nominees Ltd, Sector Investments Ltd, Smith & Williamson
Investment Management LLP, Winterflood Securities Ltd and HSBC
Marking Name Nominee (the "Subscribers"). No commission is payable
to the Subscribers.
The subscription price of 5.0 pence per new ordinary share
represents a 14.97 per cent discount to the closing mid-price of
5.88 pence per ordinary share as at 11 November 2016, and a 10.07
per cent discount to the 1-year average closing mid-price of 5.56
pence per ordinary share.
b. Shareholdings of the Subscribers
The shareholdings of the Subscribers prior to and following the
completion 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):
Prior to the Equity Following the Equity
Subscription Subscription
Shareholders No of Shares % No of Shares %
-------------------------------- -------------------------------- ------- -------------------------------- -------
MTL (Luxembourg) Sarl(1) 924,685,795 48.55% 970,532,143 46.86%
-------------------------------- -------------------------------- ------- -------------------------------- -------
Runruno Holdings limited 374,924,379 19.69% 393,513,302 19.00%
-------------------------------- -------------------------------- ------- -------------------------------- -------
A major sector specialist
institutional investor - - 81,055,670 3.91%
-------------------------------- -------------------------------- ------- -------------------------------- -------
Investec Wealth & Investment
Ltd 104,939,789 5.51% 108,846,965 5.25%
-------------------------------- -------------------------------- ------- -------------------------------- -------
Jarvis Nominees 10,808,032 0.57% 15,158,032 0.73%
-------------------------------- -------------------------------- ------- -------------------------------- -------
Lynchwood Nominees Limited 6,420,783 0.34% 10,170,783 0.49%
-------------------------------- -------------------------------- ------- -------------------------------- -------
HSBS Bank plc Junior Gold - - 8,200,000 0.40%
-------------------------------- -------------------------------- ------- -------------------------------- -------
Smith & Williamson Investment
Management LLP 1,600,000 0.08% 1,800,000 0.09%
-------------------------------- -------------------------------- ------- -------------------------------- -------
Winterflood Securities Ltd 42,763 0.00% 542,763 0.03%
-------------------------------- -------------------------------- ------- -------------------------------- -------
HSBC Marking Name Nominee 5,500,756 0.29% 6,000,756 0.29%
-------------------------------- -------------------------------- ------- -------------------------------- -------
1,428,922,297 1,595,820,414
Other shareholders 475,514,172 24.97% 475,514,172 22.96%
-------------------------------- -------------------------------- ------- -------------------------------- -------
Total shares in issue 1,904,436,469 2,071,334,586
================================ ================================
(1)MTL (Luxembourg) Sarl entity includes MTL (Luxembourg) Sarl and Mrs
Emily Crompton Candy
3. Total voting rights
Following Admission of the Shares the Company's enlarged issued
share capital will comprise 2,071,334,586 ordinary shares. The
Company does not hold any ordinary shares in treasury. Therefore,
the total number of ordinary shares in the Company will be
2,071,334,586. 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 Board of Directors and the Company are extremely grateful
for the continued support provided from its shareholders in this
placement and over the last several years. Their support for the
Company and the Project is greatly appreciated. We also are pleased
to welcome a new shareholder, a major sector specialist
institutional investor, to the Company's register. The funds raised
will significantly strengthen the Company as it focuses on the
successful ramp-up of the Runruno processing plant to design
throughput."
The information communicated in this announcement contains
inside information for the purposes of the Market Abuse
Regulation.
For further information please visit: www.metalsexploration.com
or contact:
Ian R. Holzberger +63 (0) 9189 795 992
(Chairman) +61 (0) 418 886 165
Liam A. Ruddy +61 (0) 498 648 615
(Company Secretary) +44 (0) 7911 719 960
Nominated Adviser: STOCKDALE SECURITIES Ltd
Robert Finlay, Edward Thomas +44 (0) 207 601 6100
Public Relations: TAVISTOCK
Barnaby Hayward, Jos Simson +44 (0) 207 920 3150
Broker: SP ANGEL CORPORATE FINANCE LLP
Ewan Leggat +44 (0) 203 470 0470
This information is provided by RNS
The company news service from the London Stock Exchange
END
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