Sula Iron & Gold PLC Issue of Equity (9528M)
03 August 2017 - 4:02PM
UK Regulatory
TIDMSULA
RNS Number : 9528M
Sula Iron & Gold PLC
03 August 2017
Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector:
Natural Resources
3 August 2017
Sula Iron & Gold plc
("Sula" or the "Company")
Issue of Equity
Sula (AIM: SULA), the gold exploration company focused on Sierra
Leone, is pleased to announce that it has issued 67,290,037 new
ordinary shares ("Ordinary Shares") to Equity Drilling Limited
("Equity"), the Company's drill contractor for its recently
completed Phase 3 drilling of 5,184 metre on its flagship Ferensola
gold project.
As part of their drilling contract Equity elected to receive 50
per cent. of its payment in new Ordinary Shares, approximately half
of which were due after the completion of drilling. Accordingly
Sula will issue 67,290,037 new Ordinary Shares to Equity based upon
a price of 0.225p per share, being the closing mid-market price of
the Company's shares on 31 July 2017. The issue of these shares
represents approximately half of the element of the drilling
contract. The remaining balance of shares due to Equity will be
issued towards the end of September, a further announcement will be
made in due course.
Accordingly, application will be made for the new Ordinary
Shares to be admitted to trading on AIM ("Admission") and it is
expected that Admission will become effective and that dealings in
the New Ordinary Shares will commence at 8.00 a.m. on 8 August
2017. The new Ordinary Shares will represent approximately 2.7 per
cent. of the Company's Enlarged Share Capital. The new Ordinary
Shares will rank pari passu in all respects with the Company's
existing Ordinary Shares and will be issued fully paid.
Following Admission, the Company's Enlarged Share Capital will
comprise 2,502,330,709 Ordinary Shares. This figure may be used by
shareholders as the denominator for the calculations by which they
may determine if they are required to notify their interest in, or
a change to their interest in, the Company under the Financial
Conduct Authority's Disclosure and Transparency Rules.
Roger Murphy, CEO of Sula commented:
"We would like to thank Equity Drilling for the very rapid
completion of this latest 5,184 metre drill campaign ahead of the
onset of the rainy season in Sierra Leone. Equity Drilling has
averaged over 100 metres per day of core drilling with excellent
core recovery from their two drill rigs and our payment arrangement
has allowed us to drill almost double what we would have achieved
had we paid in cash alone. Assay results from the first three holes
of this Phase 3 drill campaign have also been reported today with
very encouraging results. As a result of our strong relationship
with Equity Drilling, Sula has managed to drill almost 9,000 metres
on our flagship Ferensola Gold Project in the last 6 months, a
fantastic achievement"
*ENDS**
For further information please contact:
Sula Iron & Gold plc +44 (0) 20 7583 8304
Roger Murphy (CEO)
WH Ireland Limited (Nominated
Adviser and Broker) +44 (0) 20 7220 1666
Paul Shackleton / James
Bavister
VSA Capital Limited (Broker) +44 (0) 20 3005 5000
Andrew Raca
Blytheweigh (Public Relations) +44 (0) 20 7138 3224
Camilla Horsfall/ Nick Elwes
Ongeza Mining (Financial
and Technical Adviser) +27 (0) 11 469 0629
Iain Macpherson / Ilja Graulich
Notes:
Sula Iron & Gold plc is a gold focused exploration company
in West Africa. The Company's main objective is to explore and
advance its 153km2 Ferensola Project in Northern Sierra Leone. In
June 2015, the Company defined a JORC Exploration Target on its
Ferensola Gold Project. The Exploration Target centres on Sanama
Hill, with a tonnage range of between 5 and 7 million tonnes
("Mt"), grading at between 4 and 8 g/t Au, which equates to between
0.8 and 1.5 million ounces ("Moz") Au. The Exploration Target was
restricted to a 2km strike length segment of the regional fold belt
that is believed to extend for over 10km.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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