Red Leopard Holdings PLC Update on Proposed Acquisition & AIM Cancellation (0650F)
16 February 2018 - 6:00PM
UK Regulatory
TIDMRLH
RNS Number : 0650F
Red Leopard Holdings PLC
16 February 2018
16 February 2018
Red Leopard Holdings Plc
("Red Leopard" or the "Company")
Update on Proposed Acquisition
Cancellation of trading on AIM
On 18 August 2017, Red Leopard, the AIM quoted company,
announced that it had entered into an assignment agreement (the
"Agreement") with Capital Resources Inc. ("Capital") and Sloane
Energy Group Limited ("Sloane"), which was at the time in the
process of acquiring a coal mining project near La Loma, in the
Department of Cesar, Republic of Colombia, known as La Luna (the
"Project"). The Agreement contemplated that, subject to the
satisfaction of certain conditions, Red Leopard would acquire the
Project in consideration for the issuance of new ordinary shares
with a minimum value of $180 million in the Company (the "Proposed
Acquisition"). As the Proposed Acquisition would have constituted a
reverse takeover pursuant to AIM Rule 14, trading in the Company's
shares was suspended pending the publication of the required AIM
Admission Document and shareholder approval of the Proposed
Acquisition.
The Company is pleased to report significant progress in
advancing the transaction, including substantial work on the legal
and financial due diligence and obtaining the necessary Competent
Persons Report on the Project. However, conclusion of the Proposed
Acquisition will take longer than originally envisaged and will not
be completed by 19 February 2018 (the date on which trading in the
Company's shares will be cancelled by AIM) principally due to the
complex nature of a project of this size.
The Directors believe the Proposed Acquisition, if completed,
would be transformational for the Company and its shareholders and
will continue to work closely with Sloane, Capital and their
respective advisers to complete the necessary documentation to
execute the Proposed Acquisition. It is contemplated that
completion of the Proposed Acquisition will be conditional on the
Company undertaking an IPO, with a view to being admitted to
trading on AIM in conjunction with the execution of a simultaneous
fundraise, the proceeds of which are intended to be used to finance
the development of the enlarged group going forward. The Company is
committed to completing the Proposed Acquisition and seeking
admission to AIM as soon as practicable.
In accordance with AIM Rule 41, cancellation of the admission of
the Company's ordinary shares on AIM will become effective from
7.00am on 19 February 2018.
The board would like to take this opportunity to thank the
Company's shareholders for their patience and will update them
further as soon as possible.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
Enquiries:
Red Leopard Holdings PLC
Toby Hayward, CEO Tel: +44 (0) 207
917 6826
Beaumont Cornish Limited (Nomad) Tel: +44
(0) 207 628 3396
Roland Cornish
James Biddle
www.beaumontcornish.com
Hannam and Partners (Joint Broker) Tel: +44 (0)20 7907 8500
Andrew Chubb/ Ingo Hofmaier
Peterhouse Corporate Finance Limited (Joint Broker) Tel: +44 (0) 20 7469 0930
Lucy Williams
Eran Zucker
La Luna Project
The Project is a thermal coal resource in the Cesar region of
Colombia with compelling export economics. The concession is
located immediately adjacent to Drummond Ltd's El Descanso Norte
mine and close to the operating mines of La Francia and El Hatillo
(Murray Energy) and Calenturitas (Glencore Plc).
SRK Consulting (UK) Limited ("SRK") prepared a Mineral Resource
Statement in accordance with the Canadian Institute of Mining
Metallurgy and Petroleum ("CIM") guidelines and a report in
accordance with the Canadian Securities Administrators' National
Instrument 43-101 in 2013 which reviewed the drilling operations.
This included 33 Openholes (Tricone) for approximately 12,000m of
drilling - of these 28 holes were geophysically logged using
density, gamma, calliper, dipmeter and verticality tools
(approximately 10,600m logged openhole); and 15 cored boreholes for
approximately 4,000m of core drilling which were also logged. The
initial report estimated a total resource base for possible future
extraction by both open pit and underground methods of 130Mt of
coal on a Measured, Indicated and Inferred Resource basis with a
gross calorific value of approximately 11,800 btu/lb, split as
follows:
Measured 18.371
Mt
------------------ --------
Indicated 82.812
Mt
------------------ --------
Measured and 101.183
Indicated Mt
------------------ --------
Inferred Resource 28.836
Mt
------------------ --------
Total 130.0
Mt
------------------ --------
Source, SRK report
dated 21 January 2013
----------------------------
The Company has appointed SRK to prepare a Competent Persons
Report on the Project which will be included in the AIM admission
document.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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