TIDMBMR
RNS Number : 3814W
BMR Group PLC
14 November 2017
BMR Group PLC
("BMR", the "Group" or the "Company")
Placing and General Update
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
Placing
BMR Group PLC is pleased to announce that Peterhouse Corporate
Finance Limited has raised GBP800,000 before expenses, by way of a
placing of 40,000,000 new ordinary shares of GBP0.01 each in the
capital of the Company (the "Placing Shares") at 2p per share.
Application will be made to the London Stock Exchange for the
Placing Shares to be admitted to trading on AIM and it is expected
that admission will become effective and trading will commence on
20 November 2017. The Placing Shares will rank pari passu with the
existing ordinary shares of the Company.
Alex Borrelli and Jeremy Hawke, both Directors of BMR, have each
subscribed GBP15,000 for 750,000 Placing Shares at 2p per share. As
a result, upon admission their respective holdings will amount to
2,483,332 and 750,000 ordinary shares (representing c.1.0% and
0.3%, respectively, of the enlarged share capital).
Following admission of the Placing Shares to trading on AIM, the
Company will have a total of 238,339,566 ordinary shares in issue.
This figure may be used by shareholders 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
Company under the FCA's Disclosure and Transparency Rules.
The net proceeds of the placing will enable BMR:
(i) to satisfy the remaining deferred consideration payments to
Bushbuck Resources Limited of $470,000 (c.GBP360,000) following
completion of the acquisition of the Star Zinc Large Scale
Prospecting Licence 19653 - HQ - LPL ("Star Zinc") by Enviro
Zambia, in which BMR currently has a 49% equity interest; and
(ii) to meet its ongoing working capital requirements.
Update on Kabwe
In compliance with the terms of the binding term sheet signed
with Jubilee Platinum PLC ("Jubilee") announced on 23 October 2017,
BMR has supplied preliminary technical data thereby enabling
Jubilee to start its due diligence process prior to entering into
the proposed joint venture agreement.
African Compass International Limited has informed the Company
that it is in negotiations to secure an alternative source of
funding in order to meet its contractual obligations to the Group,
and BMR has therefore delayed the termination of the related
contracts.
Update on the joint venture with Galileo Resources PLC
("Galileo")
Following the acquisition by BMR of Star Zinc on 4 September
2017, BMR applied to the Zambian Mining Cadastre Department for the
transfer of the Star Zinc licence to the Group. The transfer is yet
to be concluded and is currently being progressed. Pending
completion of the transfer, the formal joint venture agreement with
Galileo is also yet to be entered into. In the meantime, the joint
venture continues to be conducted in accordance with the binding
term sheet entered into on 31 August 2017, which sets out the key
joint venture terms.
Update on the Ester project
Following the Company's announcement on 14 November 2016, that
it had entered into an option agreement on 11 November 2016 with
Mineralia-Minas, Geotecnia E Construcoes, LDA ("Mineralia") to
acquire an 80% interest in the 327 sq km Ester exploration licence,
the Company is pleased to announce that it has fulfilled its
EUR140,000 (c.GBP120,000) financial obligation and has informed
Mineralia that it intends to exercise its option.
Upon exercise of the option, the Ester licence will be
transferred into a new joint venture company to be incorporated in
Portugal and owned as to 80% by BMR and as to 20% by Mineralia
after which BMR is contracted to pay deferred consideration to
Mineralia of EUR100,000 (c.GBP90,000) upon the application and
granting of a preliminary exploitation licence by no earlier than
2019 and EUR1,000,000 (c.GBP880,000) upon the application and
granting of a definitive exploitation licence thereafter.
The Ester licence hosts the historic Regoufe and Rio Frades
tungsten/tin mines. During the past 12 months, BMR and Mineralia
have successfully completed a geological field campaign focused
particularly on the area close to the Regoufe Mine. Recent scoping
metallurgical test work undertaken by the Company on samples
recovered from the mine's waste dumps has successfully recovered
wolfram, tin, gold and silver and enabled the Company to develop a
conceptual flow sheet. Arrangements have been made to collect
additional sample material from the old Regoufe mine itself and to
further refine the conceptual treatment flow sheet.
Alex Borrelli, Chairman, commented: "We are delighted to
announce this placing which will enable us to advance the Kabwe
project with Jubilee Platinum PLC.
"We are also delighted to be exercising the Ester option,
particularly as the tungsten APT price has risen 37% from
US$187/mtu to a current price of over US$300/mtu."
For further information:
BMR Group PLC 020 7734 7282
Alex Borrelli, CEO and Chairman
WH Ireland Limited 020 7220 1666
NOMAD and Joint Broker
Chris Fielding, Head of Corporate Finance
Peterhouse Corporate Finance 020 7469 0930
Joint Broker
Lucy Williams/ Duncan Vasey/ Heena Karani
This information is provided by RNS
The company news service from the London Stock Exchange
END
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