TIDMWRES
RNS Number : 9342Y
W Resources PLC
09 March 2017
9 March 2017
W Resources Plc
("W" or the "Company")
Strategic Review of Copper and Gold Assets
and
Placing to Raise GBP750k
W Resources Plc (AIM:WRES), the tungsten, copper and gold
mining, exploration and development company with assets in Spain
and Portugal, is pleased to provide an update on its recently
completed strategic review of its advanced copper and gold assets
located in Portugal and announces a placing to raise
GBP750,000.
Over the past 18 months, W has been successful in advancing its
copper and gold exploration activities in the Iberian Peninsula and
owns 100% of the CAA / Portalegre gold prospect, including the São
Martinho gold deposit and 100% of the Monforte-Tinoca copper
exploration licence, including the Tinoca and Azeiteiros copper
mines.
The strategic review has highlighted that there is a significant
opportunity for W accelerate the development of its copper and gold
projects by focusing dedicated funding in this area which will
increase the value of these assets. Therefore, the Board has
decided to evaluate alternatives to separate these projects from W
and is considering strategies including listing them in a new
vehicle on the London Stock Exchange.
São Martinho has a JORC compliant resource estimate of 3Mt at
1.04g/t gold, equating to 111,987oz in contained gold (inferred +
indicated categories), defined by Golder Associates in June
2016[i]. W has subsequently completed a very successful 1,500m
diamond core drilling programme which included significant results,
announced on 17 January 2017, of:
-- Hole SMD-009 - Wide zone of 56.4m at 2.34g/t from 2.6m
-- Hole SMD-004 - 2.40m grading 4.2 g/t Au from 32.90m
-- Hole SMD-007 - Two gold bearing zones with a shallow zone at
18-20m and a deeper zone at 104m
A JORC update of the São Martinho gold resource report is now
underway and expected to be completed in Q2 2017. Once complete, an
update will be provided on the findings and development
opportunities.
The Monforte-Tinoca Copper exploration licence, which contains
the Tinoca and Azeiteiros former copper mines, was granted to W in
July 2016 and development work is progressing well on these two
projects.
Michael Masterman, Chairman of W Resources commented: "As well
as providing our flagship La Parrilla and Régua tungsten projects
with greater strategic and logistical management focus, time and
resources, there is merit in separately listing for our Copper and
Gold assets and growing this attractive portfolio to ensure our
shareholders benefit from its success."
"Construction of the plant remains on track at La Parrilla and
we are now in a position to order the crusher, jig and mill which
keeps us on track to resume tungsten production in the second half
of 2017."
In order to advance the development of the copper and gold
assets, and advance the purchase of the La Parrilla crusher and
jig/mill, W has completed a placement of 214,285,713 ordinary
shares of 0.1p per share ("Ordinary Shares") at 0.35p per Ordinary
Share to raise GBP750,000 (the "Placing"), before expenses to new
and existing shareholders, including to a director of W. The
oversubscribed Placing was managed by Turner Pope Investments (TPI)
Ltd. The Placing has been undertaken instead of the previously
anticipated convertible loan note. Arrangements for the financing
of La Parrilla are advancing in respect of the vendor financing and
grants for the equipment packages and other financing
initiatives.
Related Party Transaction
The placees include Symmall Pty Limited as trustee of the
Masterman Superannuation Fund of which Mr. Michael Masterman (a
director of the Company) is both a beneficiary and trustee, which
has subscribed for 42,857,142 Ordinary Shares amounting to
GBP150,000.
The participation in the Placing of Mr. Masterman falls to be
treated as a related party transaction under AIM Rule 13. The
independent directors, having consulted with Grant Thornton UK LLP
(the Company's nominated adviser), confirm that they are satisfied
that the terms of Mr. Masterman's participation in the Placing are
fair and reasonable insofar as the Company's shareholders are
concerned.
Following the issue of all new Ordinary Shares, the Company will
have 4,574,781,687 Ordinary Shares in issue and Mr. Michael
Masterman (and related parties) will be interested in 1,036,541,840
Ordinary Shares in the Company, representing 22.66 per cent of the
Company's total voting rights.
Application has been made for the new Ordinary Shares being
issued in connection with the Placing to be admitted to trading on
AIM which is expected to occur on or around 14 March 2017.
Following admission of the new Ordinary Shares, the Company's
enlarged issued share capital will comprise 4,574,781,687 Ordinary
Shares with voting rights. The Company has no shares held in
Treasury. This figure of 4,574,781,687 Ordinary Shares 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 Guidance
and Transparency Rules.
Enquiries:
W Resources Plc Grant Thornton UK LLP
Michael Masterman Colin Aaronson / Harrison
T: +44 (0) 20 7193 7463 Clarke
www.wresources.co.uk T: +44 (0) 20 7383 5100
SI Capital Gable Communications
Andy Thacker / Nick Emerson Justine James
T: +44 (0) 1483 413500 T: +44 (0) 20 7193 7463
www.sicapital.co.uk M: +44 (0) 7525 324431
The information contained within this RNS is considered to be
inside information, for the purposes of Article 7 of EU Regulation
596/2014, prior to its release.
The notifications below, made in accordance with the
requirements of the Market Abuse Regulation, provide further
detail.
1 Details of the person discharging managerial
responsibilities / person closely associated
---- ----------------------------------------------------------------
a) Name Michael Masterman
---- ------------------------------ --------------------------------
2 Reason for the notification
---- ----------------------------------------------------------------
a) Position / status Chairman
---- ------------------------------ --------------------------------
b) Initial notification Amendment
/ Amendment
---- ------------------------------ --------------------------------
3 Details of the issuer, emission allowance market
participant, auction platform, auctioneer or
auction monitor
---- ----------------------------------------------------------------
a) Name W Resources Plc
---- ------------------------------ --------------------------------
b) LEI 213800H66EK87TAOS666
---- ------------------------------ --------------------------------
4 Details of the transaction(s): section to be
repeated for (i) each type of instrument; (ii)
each type of transaction; (iii) each date; and
(iv) each place where transactions have been
conducted
---- ----------------------------------------------------------------
a) Description of the financial Options to subscribe for
instrument, type of new ordinary shares of
instrument 0.01p each
---- ------------------------------ --------------------------------
Identification code GB00B0358H47
---- ------------------------------ --------------------------------
b) Nature of the transaction Subscription for new ordinary
shares
---- ------------------------------ --------------------------------
c) Price(s) and volumes(s) Price(s) Volume(s)
---- ------------------------------ --------------- ---------------
GBP0.0035 42,857,142
----------------------------------- --------------- ---------------
d) Aggregated information
---- ----------------------------------------------------------------
Aggregated volume 42,857,142
----------------------------------- --------------------------------
Price GBP0.0035
----------------------------------- --------------------------------
e) Date of the transaction 9 March 2017
---- ------------------------------ --------------------------------
f) Place of the transaction Outside of a trading venue
---- ------------------------------ --------------------------------
[i] As announced in the 9 June 2016, W Resources Plc RNS
Mineral Resources for Sao Martinho Deposit using
a 0.5g/t Au cut-off grade within mineralised domain
(Golder Associates)
============================================================
Mt Au(g/t) Au content
(oz)
================= ======== ============ =================
Indicated 0.48 1.03 17,363
================= ======== ============ =================
Inferred 2.56 1.05 94,624
================= ======== ============ =================
Total 3.04 1.04 111,987
================= ======== ============ =================
Source: Golder Associates
This information is provided by RNS
The company news service from the London Stock Exchange
END
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