TIDMRBD
RNS Number : 6548C
Reabold Resources PLC
19 April 2017
For immediate release 19 April 2017
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR"). IN
ADDITION, MARKET SOUNDINGS (AS DEFINED IN MAR) WERE TAKEN IN
RESPECT OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE
RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION
AS PERMITTED BY MAR. THAT INSIDE INFORMATION IS SET OUT IN THIS
ANNOUNCEMENT AND HAS BEEN DISCLOSED AS SOON AS POSSIBLE IN
ACCORDANCE WITH PARAGRAPH 7 OF ARTICLE 17 OF MAR. UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL
THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION IN
RELATION TO THE COMPANY AND ITS SECURITIES
REABOLD RESOURCES PLC
"Reabold" or the "Company"
Investment into Advanced Lithium-Tin Project in Spain.
Proposed Capital Raising of GBP 367,500.
Reabold Resources Plc (LSE AIM:RBD) is pleased to announce that
it has entered into an agreement to buy an initial interest in the
advanced San Jose Lithium-Tin Project in Spain ("Investment") for a
consideration of A$500,000 (approx. GBP300,000). The San Jose
Project ("Project") is a Joint Venture between Plymouth Minerals
Limited's ("Plymouth" ASX:PLH) subsidiary Tonsley Mining Pty
Limited ("Tonsley") and Sacyr, S.A,, the IBEX 35 Spanish listed
multinational infrastructures and services company. This investment
is in line with Reabold's strategy to identify strategic mineral
opportunities with the potential to add significant shareholder
value.
To fund the Investment and for working capital purposes, the
Company is proposing to arrange subscriptions totaling GBP367,500
for 73,500,000 new Ordinary Shares of 0.1p each ("Subscription
Shares") at a price of 0.5p per share (the "Subscription")
conditional on Admission to trading on AIM.
Highlights - San Jose Lithium/Tin Project:
-- Plymouth has announced high-grade historic and current drilling intercepts including;
o 142m @ 1.2% Li(2) O from 67m
o 68m @ 1.1% Li2O from 91m
o 52m @ 1.1% Li2O from 18m
o 45m @ 1.0% Li2O from surface
o 34m @ 1.3% Li2O from 103m
o 250m @ 1.0% Li2O from surface
-- Plymouth has also reported in excess of 1.1 million tonnes of
LCE resource (Non JORC 2012). Updated JORC compliant resource
expected May 2017 (including recent drilling).
-- Exceptional metallurgy results - 97% lithium recovery
achieved in first stage metallurgical testwork, using well
understood sulphuric acid processing routes.
-- Mineralogy confirms ore amenable to simple beneficiation as
per previous historical feasibility study.
-- Deposit is open at depth and along strike.
-- Reabold is investing AUD $500,000 (approx. GBP300,000) for a
2.0% interest in Tonsley. GBP367,500 is proposed to be raised by
subscriptions to fund the investment and for working capital
purposes.
-- Tonsley has the right to earn a 75% interest by spending
EUR1.5 million for a first stage 50%, then EUR2.5 million for the
additional 25%, which is being funded by Plymouth in the San Jose
Lithium-Tin Project.
Jeremy Edelman, Reabold's Chairman, commented.
"With the current dynamics surrounding the fast growing European
lithium market, the Company sees tremendous opportunity in this
rapidly developing San Jose Lithium-Tin Project together with the
Project's development partners as they continue to add quantum
steps of value to the project through their experienced personnel
and professional operational skills. We see the San Jose
Lithium-Tin Project as a potential company making investment going
forward. The Company and Plymouth Minerals Limited, the majority
owners of Tonsley, will be discussing future opportunities between
them on ways to co-operate on potentially increasing Reabold's
corporate and operational involvement in this exciting San Jose
Lithium-Tin project."
Further Information:
About the San Jose Lithium-Tin Project, Spain:
Historically the Spanish Mining Company, Tolsa SA, conducted an
extensive feasibility study at San Jose from 1985-1991. This
included 8,400m of Reverse Circulation (RC) and diamond drilling. A
resource (Not JORC 2012) was estimated and on the basis of this,
mining and processing studies were undertaken. The deposit is open
to the north, west and at depth and there is significant upside in
the tonnage, although the most current (Non JORC 2012) estimate
contains greater than 1.1 million tonnes of lithium carbonate
equivalent. Source: PLH website
Drilling confirms San Jose is a globally significant lithium
deposit with potential to be significantly enlarged. The deepest
hole drilled by Tolsa, hole number SJ-1A, which reached 391.5m
down-hole and significantly to illustrate the size and scale of the
deposit ended with a significant intercept of 6.5m @ 1.62% Li2O
from 386m. The deepest diamond hole drilled by Plymouth, MSJ-DD-003
on section 4 reached 250m down-hole reported 250m @ 1.0% Li2O and
ended in significant grade of 1.08% Li2O. Source: PLH ASX
announcement 29(th) March 2017
A ten hole drilling program was completed at the end of March
2017 at the San Jose Lithium-Tin project. Lithium mineralisation is
open along strike and at depth with the deepest intercept (ending
in mineralisation) 6.5m@ 1.6% Li(2) O . Source: PLH ASX
announcement 29(th) March 2017
Historic and current drilling intercepts include;
o 142m @ 1.2% Li(2) O from 67m
o 68m @ 1.1% Li2O from 91m
o 52m @ 1.1% Li2O from 18m
o 45m @ 1.0% Li2O from surface
o 34m @ 1.3% Li2O from 103m
o 250m @ 1.0% Li2O from surface
Source: PLH ASX announcement 29(th) March 2017
Plymouth is fast tracking JORC resource calculations with
leading industry consultant, Snowden Group. A Maiden JORC Resource
statement is expected in Q2 2017.Results highlight the outcropping
nature of Lithium mineralisation and amenability to a bulk tonnage
open pit. Source: PLH ASX announcement 12(th) April 2017
The lithium is hosted in phengite-muscovite (mica) which has
shown excellent sulphuric acid-leach recoveries to a lithium
carbonate product. A common misunderstanding of this this kind of
mica hosted lithium deposit is to compare the grades of a deposit
like this one to one of spodumene mineralisation. The different
mineralisation changes the metallurgy and therefore the process
flowsheet. San Jose Lithium project has historically shown to
recover to a lithium carbonate, which sells at a substantial
premium to spodumene concentrates. From this perspective, San Jose
is more akin to a high grade brine operation than a spodumene mine.
Source: Hartleys Analyst report 2nd March 2017
http://www.plymouthminerals.com/i/dmsdocument/282
The quality of the historical data, in conjunction with the
positive results being achieved in field programs, now position
fast-track economic studies and a Mining Lease Application at the
San Jose Lithium Project. Source: PLH ASX announcement 6(th) April
2017
Tonsley's Joint Venture partner in the San Jose Lithium project
is Sacyr S.A., one of Spain's biggest companies, an IBEX 35 stock
exchange listed company, with a market capitalisation of over EUR1
billion. Sacyr is a multinational infrastructure and services
company. Its focus on innovation and international expansion have
made it a world leader in the building and management of
infrastructure, industrial projects and services in 29 countries.
SACYR S.A. website. A summary of the Joint Venture and Earn In
terms between Tonsley and Sacyr's wholly owned subsidiary, Valoriza
Mineria, are in Schedule 1 following.
In addition to the San Jose Lithium-Tin project Tonsley is the
80 percent owner of the Morille tungsten-tin project in Spain
(Aurum Mining PLC 20%) and has leveraged off local relationships
and preparatory work competed by Aurum Mining PLC between 2011 and
2013. Initial drilling in 2014 by Plymouth has returned some
results, including 7m @ 1.3% WO3 from 67m (42m below surface) from
the few targets drilled. Mineralisation drilled is open and many
more old mines remain untested. However present operational focus
for Tonsley is the San Jose Lithium-Tin project. Source PLH
website
Tonsley is a special purpose vehicle and has published no
Accounts.
Terms of Investment:
The Company has entered into a share subscription agreement in
the amount of AUD$500,000 (approx. GBP300,000) to acquire a
minority interest of approx. 2.0% in Tonsley, an Australian special
purpose holding company which owns the rights to earn up to a 75%
interest in the San Jose Lithium-Tin project in Spain, refer
Schedule 1 ("Tonsley Earn-in"). After an agreed amount of time
between the Parties or in the event no interest is earned by
Tonsley (or its subsidiary) in the San Jose Lithium-Tin project,
there is an agreed contractual mechanism (by way of options) for
the AUD$500,000 funds to be returned to the Company .
The remaining shares in Tonsley are owned by Plymouth Minerals
Limited (ASX:PLH), an Australian listed company. The Parties will
be discussing future opportunities between them in the corporate
and operational development of the San Jose Lithium-Tin
project.
Further information on the Tonsley Earn-in is set out in the
attached Schedule 1
Proposed Subscription:
The Company is arranging Subscriptions totaling for 73,500,000
new Ordinary Shares of 0.1p each ("Subscription Shares") at a price
of 0.5p per share (the "Subscription"). The funds will be used for
the Investment and for working capital purposes. The Subscription
is conditional on Admission to trading on AIM.
Application will be made for the 73,500,000 new Ordinary Shares,
which will rank pari passu with all existing ordinary shares, to be
admitted to trading on AIM ("Admission"). Admission is expected to
take place on or around 25 April 2017.
The total number of Ordinary Shares with voting rights in issue
following Admission will be 394,415,896, and this figure may then
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 to their interest in, the
share capital of the Company under the Financial Conduct
Authority's Disclosure and Transparency Rules.
Saltwind Enterprises Limited ("Saltwind"), a company of which
Jeremy Edelman, Director, is a director and shareholder, which owns
38.6% of the Company's issued share capital is intending to
subscribe GBP50,000 for 10,000,000 new Ordinary Shares under the
Placing. In addition, Silverwood Ventures Limited ("Silverwood")
and Pelamis Investments Limited ("Pelamis") which each own 12.5% of
the Company's issued share capital are intending to subscribe
GBP100,000 for 20,000,000 new Ordinary Shares and GBP50,000 for
10,000,000 new Ordinary Shares respectively. Accordingly, these
proposed subscriptions are a related party transaction under the
AIM Rules. Anthony Samaha, the Director independent of the
transaction, considers, having consulted with the Company's
nominated adviser, that the terms of the transaction are fair and
reasonable so far as shareholders are concerned.
Subsequent to the issue of the Subscription Shares, together
with the issue of the 10,000,000 new Ordinary Shares to Saltwind as
described above, Saltwind will be interested in 134,000,000
Ordinary Shares or 34.0% of the Company's issued share capital and
Saltwind and Jeremy Edelman together, will be interested in
159,000,000 Ordinary Shares or 40.3% of the Company's enlarged
issued share capital (including his existing 7.8% shareholding in
his own name). Silverwood and Pelamis will be interested in
60,000,000 and 50,000,000 Ordinary Shares respectively,
representing 15.2% and 12.7% respectively of the Company's enlarged
issued share capital.
The Company anticipates that completion of the Subscription will
be announced shortly.
Competent Person Statement:
The information in this report that relates to Exploration
Results, Mineral Resources or Ore Reserves is based on the
information compiled or reviewed by Mr Adrian Byass, B.Sc Hons
(Geol), B.Econ, FSEG, MAIG and an employee of Plymouth Minerals
Limited. Mr Byass has sufficient experience relevant to the style
of mineralisation and type of deposit under consideration and to
the activity which he is undertaking to qualify as a Competent
Person as defined in the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Exploration Targets, Mineral
Resources and Ore Reserves. Mr Byass consents to the inclusion in
the report of the matters based on this information in the form and
context in which it appears.
For further information please contact:
Reabold Resources plc
Jeremy Edelman +44 (0) 207 440 0640
Antony Samaha
Beaumont Cornish Limited
Roland Cornish/ Felicity Geidt +44 (0) 20 7628 3396
Glossary of terms
Lithium grades are normally presented in percentages or parts
per million (ppm). Grades of deposits are also expressed as lithium
compounds in percentages, for example as a percent lithium oxide
(Li2O) content or percent lithium carbonate (Li2CO3) content.
Lithium carbonate equivalent ("LCE") is the industry standard
terminology for, and is equivalent to, Li2CO3. Use of LCE is to
provide data comparable with industry reports and is the total
equivalent amount of lithium carbonate, assuming the lithium
content in the deposit is converted to lithium carbonate, using the
conversion rates in the table included further below to get an
equivalent Li2CO3 value in per cent. Use of LCE assumes 100%
recovery and no process losses in the extraction of Li2CO3 from the
deposit.
Table: Conversion Factors for Lithium Compounds and
Minerals:
Convert from Convert Convert to Convert to Li2CO3
to Li Li2O
------------------- -------- -------- ----------- ------------------
Lithium Li 1,000 2,153 5,323
------------------- -------- -------- ----------- ------------------
Lithium Oxide Li2O 0,464 1,000 2,473
------------------- -------- -------- ----------- ------------------
Lithium Carbonate Li2CO3 0,188 0,404 1,000
------------------- -------- -------- ----------- ------------------
Read more:
http://infonom.freeforums.net/thread/91/lithium-classification-conversion-factors#ixzz4e7J8MNvt
SCHEDULE 1
Tonsley Mining Pty Ltd. through its wholly owned subsidiary,
EXTREMADURA MINING, S.L.U., can earn an interest in the San Jose
Lithium-Tin project after Valoriza Mineria has acquired all
relevant and necessary access permits to allow exploration
(Investigation permits) through the following;
-- Stage 1: Upon Valoriza Mineria obtaining the Investigation
Permit, Valoriza Mineria and EXTREMADURA will conduct technical and
economic evaluation studies on the San Jose Mine (SJM) and submit
and Exploitation Concession (CdE) to the Extremadura Government
within a period of 12 months (or such later date agreed by the
Extremadura Government). At this point, Plymouth will earn a 50%
interest in the Special Purpose Vehicle (SPV) by expending EUR1.5
million on technical and related studies, exploration and other
works required to produce the CdE which will include the submission
of the CdE at any point until the end of Stage 1.
-- EXTREMADURA may withdraw from its expenditure commitments at
any time during Stage 1. EXTREMADURA forfeits all rights should it
withdraw during Stage 1, or should it not meet the expenditure
requirements and conditions of Stage 1.
-- EXTREMADURA can elect to increase its stake (Stage 2) or may
continue in a 50/50 JV with Valoriza Mineria to develop the project
on standard industry terms.
-- Stage 2: If EXTREMADURA elects to increase its shareholding
in the SPV to 75% it will enter into "Stage 2". During Stage 2,
EXTREMADURA may increase its shareholding by expending a further
minimum EUR2.5 million on or in relation to the SJM over a period
of 2 years and by producing a Feasibility Study (FS). This can be
extended to 3 years with a payment of EUR0.1 million if the FS has
not been completed.
-- EXTREMADURA may, at its sole discretion by notice in writing
within 45 days of the date that EXTREMADURA earns the 75% interest,
buy the remaining 25% interest in the SPV for a staged payment
comprised of a) EUR0.5 million cash to be paid within 90 days, b)
EUR0.5 million cash at commencement of mining, and c) 2% NSR capped
at EUR3.0 million. EXTREMADURA can accelerate this payment by
paying EUR2.5 million cash.
-- EXTREMADURA may accelerate ownership through either Stage 1
or 2 by advancing payment to the SPV of the minimum funds required
for the completion of works. For the stage 2, in addition to the
advancing payment required, EXTREMADURA shall complete the FS.
-- EXTREMADURA may withdraw from its expenditure commitments at
any time during Stage 2. EXTREMADURA forfeits all rights to earn a
75% shareholding of the SPV should it withdraw during Stage 2, or
should it not meet the expenditure requirements of Stage 2. In that
event, EXTREMADURA will retain its 50% shareholding in the SPV and
the parties will form the JV.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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