#KAV Kavango Resources PLC – Investment in Pambili Natural Resources TSX-V:PNN
Kavango Resources plc (LSE:KAV), the Southern Africa-focused metals exploration company, is pleased to announce that the Company has completed a strategic investment in gold mining, exploration, and development company Pambili Natural Resources Corporation (“Pambili” or “the Corporation”) (TSX-V:PNN).
Kavango has given notice to Pambili that it wishes to convert a US$250,000 convertible loan (the “Loan”) made to Pambili, along with a Loan Premium of US$75,000 (“Repayment amount”), into common shares in the Corporation (“the Conversion”). Following the Conversion, Kavango will hold 15% of Pambili’s total issued share capital.
Pambili is active in Matabeleland in southern Zimbabwe, having established operations here in 2022.
Kavango has worked with Pambili since March this year, assisting it through a corporate restructure and acquisition of the Golden Valley project, which completed earlier in November 2023 (Pambili’s announcement can be read >>> here).
Golden Valley has a history of high-grade underground mining and gold production. Golden Valley includes a functional gold processing plant and stamp mill, two historic shafts that present prospective exploration targets and near surface exploration potential to target a possible larger-scale deposit. Some small-scale gold production continues at Golden Valley by way of toll-milling third-party ore through an on-site stamp mill.
Pambili’s plan at Golden Valley is to explore the underground potential first, with a view to recommencing mining in Q1 2024. The processing plant is ready to receive ore and plans are being finalised for underground exploration drilling.
In parallel to this, Pambili will conduct surface exploration at Golden Valley using Kavango’s field team.
By taking a strategic interest in Pambili, Kavango is seeking to build on its first-mover advantage in Matabeleland by increasing its exposure to a third, highly prospective greenstone belt. Golden Valley is located on a separate greenstone belt to the one that hosts Kavango’s Hillside and Nara projects and a separate greenstone belt to the one that hosts the Leopard Project (announced >>> 25 July 2023).
In addition, Kavango and Pambili will be able to share operational, exploration and administrative functions. This is expected to provide both companies with significant cost savings and operational efficiencies.
Ben Turney, Chief Executive of Kavango Resources, commented:
“There is immense opportunity in Zimbabwe’s Matabeleland goldfields. Kavango has identified a strong pipeline of opportunities across the region. Our investment in Pambili creates for us an additional outlet for some of these.
We are very pleased to partner with Pambili, as Jon Harris and his team recommence mining at Golden Valley. This is an exciting project that Kavango knows well. It combines excellent potential for near-term revenue generation with untested surface exploration upside.
The greenstone belt that Golden Valley is on is highly prospective for gold with a number of possibilities for further expansion in the area. The processing plant is operational and can be added to as Pambili grows. With what we’ve learned about historic cut-off grades at Golden Valley, underground drilling could deliver a very positive result.
We have been able to secure our investment in Pambili at a low entry point. I expect our ongoing working relationship, supported by the shared operational efficiencies it affords, has already added, and will continue to add, substantially to our balance sheet over time.“
Further information in respect of Kavango and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
+46 7697 406 06
First Equity (Broker)
Jason Robertson
+44 207 374 2212
Kavango Competent Person Statement
The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP). Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status. Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
#KAV Kavango Resources PLC – KCB – Airborne geophysical survey commences
Kavango Resources plc (LSE:KAV), the Southern Africa focussed metals exploration company, is pleased to announce the commencement of an airborne geophysical survey on its Kalahari Copper Belt (“KCB”) project in Botswana.
The Company has signed a contract with South Africa-based New Resolution Geophysics (“NRG”) for Time Domain Electromagnetic (“TDEM”), Magnetic, and Gravity surveys combined on one helicopter platform (“the NRG Survey”).
The NRG Survey will consist of 2,374-line kms at a line spacing of 500m x 5,000m across Kavango’s Block 1A and Block 1B Prospecting Licences (“PLs”)
The work expands on airborne geophysical surveying already completed by ENRG Elements (ASX:ENRG) (“ENRG”) on PL203/2016 and PL127/2017, two adjacent PLs recently acquired by Kavango (announced >>> 16 November 2023).
Figure 1: NRG’s planned survey lines across Kavango’s Block 1A and Block 1B licences and airborne survey data covering the PLs acquired from ENRG
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“Kavango is targeting the discovery of large-scale copper/silver targets in the Kalahari Copper Belt (KCB) in Botswana.
We recently acquired additional exploration licences from ENRG Elements to complete a large contiguous land package from the town of Ghanzi to the Namibian border. Our interpretation of ENRG’s existing survey data for Prospecting Licences 203/2016 and 127/2017 supports our working theory that this area is prospective for copper/silver. We believe this potential could extend to Kavango’s other licence holdings, which have designated as Blocks 1A and 1B.
As part of our “levelling up” strategy in the KCB, we are compiling a consistent data set for all the ground we control. NRG’s airborne geophysical survey will provide us with some of the final exploration data we need ahead of defining drill targets for next year’s drill campaign.
Our recent work has confirmed physical indicators of a copper mineralising system within our ground, combined with encouraging geophysical anomalies.
Our goal in reprocessing ENRG’s existing data and combining it with the data from the airborne surveys we will fly over Blocks 1A and 1B will be to increase our understanding of the region’s mineralised potential. We will also investigate the interpreted sub-basin that could be a significant control for copper/silver deposits.“
Further details
The NRG Survey will be conducted over five PLs that make up Kavango’s Block 1A (PL046/2020, PL049/2020, PL052/2020, PL053/2020) and Block 1B (PL205/2016) licence areas. The licences are located southwest of the town of Ghanzi and adjacent to PL203/2016 and PL127/2017, two of the KCB PLs Kavango recently acquired from ENRG.
NRG is expected to commence its airborne geophysics survey on 4 December 2023. The survey is expected to take two weeks to complete, with the final data processing and delivery of products anticipated for Q1 2024.
Program objectives
Kavango is currently re-processing data from airborne geophysical surveys already completed by ENRG on PL203/2016 and PL127/2017.
The Company will combine this re-processed data with data from the new NRG surveys to test its working theory that the copper/silver prospective geological and geophysical features, which it interpreted from ENRG’s existing airborne geophysics survey data, extend onto Kavango’s Block 1A and Block 1B licences. Kavango’s geologists and geophysicists believe this could be indicative of a regional copper mineralizing system.
Kavango’s geologists wish to examine whether the stratigraphy and lithology they have begun to map on the former ENRG PLs extend on to these Blocks. They believe that ENRG’s existing data conforms to sequences in the lower D’Kar Formation seen across other parts of the KCB.
The models in Figures 2 and 3 below depict the type of fold geometry and structural trap-sites Kavango believes to underlie areas of Block 1A and 1B.
Figure 2 is a modified version of the fold geometry, showing a “preserved” as opposed to “un-roofed” dome, as well as associated mineralisation present in the fold closure at Khoemacau’s North East Fold (“NEF”) deposit on the nearby Banana Zone. Figure 3 is a schematic cross-section showing both the shear-hosted mineralisation and dilational vein-hosted mineralisation present in Sandfire Resources’ (ASX:SFR) A4 deposit.
Kavango believes there may be scope for either or both models to be present and is optimistic the NRG survey will identify these for further ground geophysics and future drill targeting.
Figure 2 – Regional to deposit scale geologic controls on copper silver mineralisation in the KCB – Wes Hall et al, SEG, Special Publication, no 21, pp207-236
Figure 3 – Schematic cross-section showing high-grade intersection in drill hole MO-A4-003D, interpreted geology, and the mineralisation styles across Sandfire’s A4 deposit
The magnetic component of the NRG Survey will map the structure and lithology of Block 1A and Block 1B. It is anticipated that the EM component of the NRG Survey will highlight prospective subtle conductors within the D’Kar Formation and help identify structural trap sites linked to folds, faults, and shears within Block 1A and Block 1B.
The gravity component of the NRG Survey will seek to identify whether the sub-basin identified in ENRG’s data extends into Kavango’s Block 1A. Kavango believes the margins of this sub-basin could provide priority targets for trap site development and deposit formation.
Kavango will interpret these airborne geophysical data with the goal of identifying target areas for ground geophysical follow-up, which will then lead to drill target identification.
Further information in respect of Kavango and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
+46 7697 406 06
First Equity (Broker)
Jason Robertson
+44 207 374 2212
Kavango Competent Person Statement
The technical information contained in this announcement pertaining to geophysics have been read and approved by Mr. Jeremy S. Brett, M.Sc., P.Geo., Senior Geophysical Consultant, Jeremy S. Brett International Consulting Ltd. in Toronto, Canada. Mr. Brett is a member of the Professional Geoscientists of Ontario, the Prospectors and Developers Association of Canada, the Canadian Exploration Geophysical Society, and the Society of Economic Geologists. Mr. Brett has sufficient experience that is relevant to geophysics applied the styles of mineralisation and types of deposits under consideration to act as a Qualified Person as defined under the Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects.
#FCM First Class Metals – ZIGZAG LITHIUM-HIGH GRADE CHANNEL SAMPLES
First Class Metals PLC (“First Class Metals” “FCM” or the “Company”) the UK listed metals exploration company seeking economic metal discoveries across its extensive Canadian Schreiber-Hemlo, Sunbeam and Zigzag land holdings is pleased to announce a further, significant, update on the progress on the Zigzag property which is currently focussed on the lithium and tantalum potential.
Highlights:
· Channel 7 2.36% lithium (Li2O) over 5.5m
including 2.5m at 3.44% Li2O.
· Channel sample results identify a >1% Li2O zone on the western portion of the ‘core’ 400m zone. Significant number of channel samples return more than >1% Li2O.
· Prospecting identifies mineralisation in a subparallel zone, assays pending.
Marc J. Sale First Class Metals CEO commented:
“The results from the channel samples have vindicated our enthusiasm to advance the potential of this property. The tenure of the spodumene and therefore the lithium reporting in the central sector of the property gives increased confidence in the prospectivity over the strike extensions. We are eagerly advancing the planning for drilling now the funds have been secured.”
Figure 1 showing the Zigzag property with the recent sampling, both grabs and channels, focussing on the central portion of the claim block.
The channel sampling was based on the visually encouraging results from the prospecting and associated grab samples.
The complete table of the grab samples was reported in a previous news release, however the 10 best ‘grabs’ are reproduced below.
|
Sample_No. |
Caesium Cs_ppm |
Gallium Ga_ppm |
Lithium Li_ppm |
Rubidium Rb_ppm |
Tantalum Ta_ppm |
|
F006543 |
92.6 |
107 |
17000 |
820 |
75.2 |
|
F006545 |
128 |
101 |
16500 |
1190 |
115 |
|
F006549 |
77 |
118 |
21200 |
302 |
80.6 |
|
F006573 |
85 |
112 |
17800 |
536 |
179 |
|
F006574 |
102 |
152 |
29700 |
404 |
57.3 |
|
F006576 |
81.7 |
124 |
22300 |
514 |
467 |
|
F006580 |
70 |
113 |
18500 |
650 |
145 |
|
F006583 |
36.5 |
108 |
20100 |
255 |
235 |
|
F006586 |
44.5 |
117 |
18300 |
846 |
724 |
|
F006592 |
66.9 |
153 |
27500 |
587 |
54.3 |
Table 1, showing the 10 highest grab samples along a 400m ‘core’ zone.
Nine channels were cut with lengths of under 5m to over 10m, channel lengths were usually controlled by overburden and not by diminished outcrop. A total of 80 samples were submitted to the laboratory for analysis, these included, where exposed not only the pegmatite but one, one metre sample in the host rock, which is in general mafic volcanics to the north and granitic rocks to the south.
The samples can therefore be easily segregated into four broad categories: mafic, pegmatitic, granitic pegmatites and granite.
Figure 2 showing the location of the channels relative to the ‘core 400m’ zone.
The results from the channels are very encouraging. It must be stressed that only hand stripping of vegetation was undertaken and often, exemplified by channels 5 and 7, the outcrop persisted but the vegetation cover was too onerous to be removed by hand. Accordingly it is felt that with mechanical stripping many of these channels could be extended. Additionally it is also likely that ‘gaps’ in the outcrop continuity might also be exposed as being pegmatite when exposed with mechanical stripping. The current permit allows both stripping and drilling.
The results have not only vindicated the grab samples in respect to the lithium oxide content but also highlighted again the presence of other important, critical minerals such as tantalum, gallium and rubidium.
|
Channel |
Length (metres) |
Lithium (Li20%) |
Tantalum (Ta205) ppm |
Gallium (Ga) ppm |
Rubidium (Rb20) ppm |
|
3 |
2.4 |
0.81 |
170 |
80 |
2000 |
|
Includes |
1.00 |
1.31 |
170 |
90 |
2920 |
|
3 |
3.1 |
1.52 |
60 |
90 |
1820 |
|
Includes |
0.9 |
2.54 |
100 |
110 |
2550 |
|
and |
0.5 |
2.05 |
40 |
100 |
950 |
|
4 |
1.8 |
1.85 |
220 |
90 |
1740 |
|
5 |
2.2 |
0.96 |
130 |
90 |
1280 |
|
Includes |
0.8 |
1.39 |
100 |
100 |
940 |
|
6 |
2.00 |
1.96 |
160 |
110 |
1170 |
|
7 |
5.5 |
2.35 |
150 |
120 |
1740 |
|
Includes |
2.5 |
3.43 |
170 |
140 |
1270 |
|
8 |
1.8 |
1.03 |
110 |
80 |
2070 |
|
Includes |
0.5 |
1.43 |
90 |
90 |
1050 |
|
9 |
1.9 |
1.15 |
290 |
80 |
1400 |
|
Includes |
0.6 |
2.19 |
500 |
80 |
1010 |
|
9 |
3.7 |
1.14 |
150 |
100 |
1290 |
|
Includes |
1.9 |
1.41 |
160 |
100 |
1710 |
Photo 1 showing the extent of outcrop exposed by hand stripping. Also not the change in rock type from mafic volcanics (closest) to granitic-pegmatite.
Hand stripping and channel sampling does not allow continuous sampling of the structure as it is obscured by soil, moss and other vegetation. It is believed that once mechanical stripping is undertaken the continuity of outcrops will be further enhanced.
Photo 2 showing sample of the spodumene rich pegmatite
Further prospecting and exploration
Prospecting and soil sample lines were conducted to the south of the ‘main’ pegmatite zone.
A subparallel structure has been identified to the south. Sample results are pending but visual evidence suggest a second pegmatite or a splay may exist to the south of the main zone which has been the current focus of exploration.
For further information, please contact:
|
James Knowles, Executive Chairman |
07488 362641 |
|
|
Marc J Sale, CEO |
07711 093532 |
|
|
Ayub Bodi, Executive Director |
07860 598086 |
First Equity Limited
(Financial Adviser & Broker)
|
Jonathan Brown |
0207 3742212 |
|
|
Jason Robertson |
0207 3742212 |
|
First Class Metals PLC – Background
First Class Metals is focussed on exploration in Ontario, Canada which has a robust and thriving junior mineral exploration sector. Specifically, the Hemlo ‘camp’ is a proven world class address for gold /VMSexploration. This geological terrane has significant production, both base / precious metals and a prolificnumber of exploration projects and numerous prospector’s ‘showings’.
FCM currently holds 100% ownership of seven claim blocks covering over 180km² along a 150km strike of the Hemlo-Schreiber-Dayohessarah greenstone belt which also contains the >23M oz shear hosted Hemlo gold mine operated by Barrick Gold. Late last year FCM completed the option to purchase the historical high grade (gold) Sunbeam past producing mine
The significant potential of the properties for precious, base and battery metals relate to: ‘nearology’ insomuch that all properties lie close to identified mineral anomalism, for example Palladium One’s RJ and Smoke Lake nickel projects are close to the FCM’s West Pickle Lake drill proven Ni-Cu project. This also demonstrates the second critical asset the properties hold: vector, anomalies, be they geological, geochemical, or geophysical that have demonstrated mineral potential extend on to FCM’s properties.
The inferred shear on the Esa property is being explored by neighbours both to the west and east where it crosses into their properties. Furthermore, the properties have not been extensively explored either historically or more contemporaneously. This is attributable to the overall lack of outcrop. However, modern exploration techniques are better able to ‘see through’ the ground cover and to identify anomalies.
Forward Looking Statements
Certain statements in this announcement may contain forward-looking statements which are based on the Company’s expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. Such forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘aim’, ‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, or other words of similar meaning. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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#SVML Sovereign Metals – Company Presentation
Sovereign Metals Limited (Sovereign or the Company) (ASX:SVM, AIM:SVML) is pleased to advise that an updated Company presentation is available to download from the Company’s website at:https://www.investi.com.au/api/announcements/svm/22095baf-388.pdf.
ENQUIRIES
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Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London) |
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat Harry Davies-Ball |
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Joint Brokers |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Tavistock PR |
+44 20 7920 3150 |
#FCM First Class Metals – Exploration Agreement signed with Netmizaaggamig Nishnaabeg First Nation
First Class Metals PLC (“First Class Metals” “FCM” or the “Company”) the UK listed metals exploration company seeking economic metal discoveries across its extensive Canadian Schreiber-Hemlo, Sunbeam and Zigzag land holdings is pleased to announce the signing of an Exploration Agreement (‘EA’) with the Netmizaaggamig Nishnaabeg First Nation (“NNFN” or “the Community”) covering the North Hemlo, Esa & Sugar Cube Properties.
Highlights
· Under the signed Exploration Agreement, the Company will continue to conduct mineral exploration with the support of the Community. The agreement promotes unity and a mutually beneficial and respectful relationship between First Class Metals and the Netmizaaggamig Nishnaabeg First Nation.
· The EA allows for the exploration of the North Hemlo, Esa & Sugar Cube Properties which are located within the Traditional Territories of the Netmizaaggamig Nishnaabeg First Nation.
· The Exploration Agreement recognizes and respects the Aboriginal and Treaty rights and interests of the Community with their constitutional and other legal rights.
· The Exploration Agreement is in line with the First Class Metals’ commitment to build sincere relationships with First Nation Communities. We have an active interest and respect for all people, and we understand the social, environmental, and economic implications of our activities.
Netmizaaggamig Nishnaabeg First Nation Commented-
“NNFN has a long history of productive engagement with the mining industry and supports mining activity in areas that are mutually beneficial to the First Nation and to its industry partners. We commend the importance First Class Metals places on engagement with our community, and its commitment to protect our lands and waters. FCM’s pro-active engagement with NNFN is a model for other companies seeking to work in our territory.”
Marc J Sale, First Class Metals CEO Commented–
“I am extremely pleased that the efforts to establish a transparent honest relationship with NetmizaaggamigNishnaabeg First Nation and their representatives has culminated in the signing of this agreement and I look forward to working with the Community as we progress First Class’s exploration areas. Now this EA has been granted we intend to imminently start a stripping program on the Esa Property, with the intention of bringing it to a true ‘drill ready status”
For further information, please contact:
|
James Knowles, Executive Chairman |
07488 362641 |
|
|
Marc J Sale, CEO |
07711 093532 |
|
|
Ayub Bodi, Executive Director |
07860 598086 |
First Equity Limited (Financial Adviser & Broker)
|
Jonathan Brown |
0207 3742212 |
|
|
Jason Robertson |
0207 3742212 |
|
Quoted Micro 27 November 2023
AQUIS STOCK EXCHANGE
Guanajuato Silver (GSVR) produced 787,086 ounces of silver equivalent and the loss fell by one-fifth to $7m when compared with the second quarter. The all-in sustaining cost increased to $26.22/ounce due to changes in mining and temporary closures.
SuperSeed Capital (WWW) generated 78% IRR combined from two exits. There were £220,000 of realised gains in the nine months to September 2023. There is £430,000 of cash on the balance sheet. NAV is 112p/share.
Vinanz Ltd (BTC) has teamed up with Luxor Technology Corp to improve its bitcoin mining operating efficiency. Luxor’s firmware improves mining margins when profitability is low and can increase a machine’s hashrate when profitability is higher.
Wishbone Gold (WSBN) has secured an option to acquire 100% of the Crescent East lithium and gold project in the Mosquito Creek area of Western Australia. Shares were issued at 1.25p each to pay the £25,000 option fee.
Fuel additives developer SulNOx Group (SNOX) has successfully demonstrated the effectiveness of drop-in fuel conditioner SulNOxEco in the shipping sector. Monaco-based dry-bulk ship management company Marfin Management trialled the additive onboard a 60,000 MT DWT bulk carrier over a three-month period. This showed improvements in fuel consumption.
Cadence Minerals (KDNC) says investee company Hastings Technology Metals has agreed a $50m equity funding facility for the Yangibana rare earths project. Hastings Technology Metals can draw down up to $50m from Alpha Investment Partners to provide working capital for the development of the mine. Project financing talks are progressing and there have been offers from potential partners and debt providers. Cadence Minerals has a 1.4% stake in the investee company.
Steve Xerri, who owns 4.81%, has been appointed as an executive director of Oscillate (MUSH) and he intends to focus on special situations either through individual investments or via a reverse takeover.
One Health Group (OHG) has gained two new contracts with NHS Trusts. One is to supply orthopaedic services and the other is for orthopaedic and gynaecology services. They will help to reduce waiting lists.
Apollon Formularies (APOL) says Sproutly Canada has completed due diligence on the acquisition of the company’s global cannabis-related assets in return for 49% of the enlarged share capital of Sproutly Canada. The effective valuation is likely to be around £4.2m. Regulatory approvals are required.
Kasei Holdings (KASH) has a digital asset portfolio worth $2.07m at the end of October 2023.
EDX Medical (EDX) has entered into a collaboration with Thermo Fisher Scientific. They will jointly develop and commercialise cancer diagnostics.
Looking Glass Labs (NFTX) has raised $1m at $0.10/unit – one share and one warrant exercisable at $0.10/share. A further ten million units have been swapped for $1m of debt. Further sources of finance are being sought.
Quantum Exponential Group (QBIT) has appointed VSA Capital as corporate adviser, while Pharma C (PCIL) has appointed First Sentinel as its corporate adviser.
Res Privata NV has increased its stake in NFT Investments (NFT) from 3.33% to 4.09%.
AIM
Telecoms enterprise software provider Cerillion (LON:CER) grew strongly last year, while the rate of growth might slow this year it is still likely to make good progress given the recent €12.4m contract win. In the year to September 2023, revenues were one-fifth higher at £39.2m, while underlying pre-tax profit was two-fifths ahead at £16.8m, helped by a reduction in impairment charges from £1.77m to £256,000. The growth has come from software with a dip in services revenues. Net cash reached £24.7m at the end of September 2023. The dividend has been raised from 9.1p/share to 11.3p/share.
Light Science Technologies (LST) is acquiring the Injecta Fire Barrier trade and assets from Fire Barrier International. The Injectaclad product expands when heated and prevents the spread of fire and smoke. There is no initial payment with consideration in the form of a deferred profit share agreement. The deal should be earnings enhancing and generate cash. There are maintenance and installation synergies with the contract electronics subsidiary. The cash generated will help to finance the growth of the group.
Video games developer Team17 Group (TM17) says 2023 trading is slightly better than expected, although some titles are not performing as well as anticipated and that has hit margins. There has also been overspending and delays on some development projects. That means that underlying EBITDA will be around one-sixth lower than forecast at around £40m. Some titles are being reassessed and that is likely to lead to impairment charges of up to £11.5m.
Parity (PTY) announced the sale of its remaining business yesterday afternoon. It will become a cash shell. Parity will receive up to £3m depending on working capital adjustments for recruitment business Parity Professionals. The deal costs will be £240,000. There will be £639,000 including costs spent to settle the pension liability and finance the search for an alternative business. The company will change its name to Partway.
Velocys (VLS) is the worst performer on the day after the sustainable fuels company said that there is a potential bid at 0.25p/share from a consortium including Lightrock and Carbon Direct Capital Management. This would ensure long-term funding of the business. The low share price makes it difficult to finance the sustainable fuels operations. The share price dived 63.7% to 0.25p, which values Velocys at £4.5m. A large multiple of that value needs to be raised to fund development and production. Interim funding will be required.
musicMagpie (MMAG) is in bid talks with BT Group (BT.A) and asset manager Aurelius. The talks are at an early stage.
Cyber software and services provider Shearwater Group (SWG) appears set to return to profit this year. The core software businesses have been integrated, as have two of the three consultancy businesses. In the six months to September 2023, revenues dipped from £10.8m to £10.5m. That was due to much lower software revenues. Even so, gross profit improved and, stripping out amortisation and exceptionals, the underlying loss reduced £493,000 to £93,000. That is before restructuring costs. The cost savings will show through in the second half.
Telecoms testing instrumentation supplier Calnex Solutions (CLX) has been hit by a reduction in spending by telecoms companies. In the six months to September 2023, revenues slumped from £12.7m to £7.8m and the company moved from a pre-tax profit of £3.1m to a loss of £600,000. Trading did not pick up in September as is normally the case. Non-telecoms revenues make up one-quarter of total revenues. The cost base is being kept steady in expectation of a recovery, even though that may not be until the next financial year. There is £13.5m in the bank.
There were no revenues from systems in the first half at SRT Marine Systems (SRT), but that will change in the second half when transceivers revenues will be well below the systems contribution as work on contracts reaches points where revenues can be invoiced and recognised. Interim revenues fell from £18.8m to £5.5m, although transceivers revenues were higher. Last year’s loss could be turned into a £7.2m profit this year.
Battery technology developer Ilika (IKA) has achieved its D4 development point for the Goliath battery. This is the start of turning the development into a battery product. Ilika will be able to create P1 samples for testing by customers. At the end of the week, Ilika confirmed that its interims will be in line with expectations with revenues of £1.3m and there is £13.2m in cash left.
Neometals (NMT) has completed the A$9m from a placing at 10p/share and wants to raise a further £6.8m from a one-for-eight entitlement offer. The cash will fund the development of the nickel, cobalt, lithium recycling business Primobius, including the delivery of a facility to Mercedes Benz, and potentially to purchase a stake in Canadian licensee Stelco.
Empire Metals (EEE) has released initial results for the first diamond drillhole at the Pitfield project in Western Australia. This shows significant grades of titanium oxide. There will be results from two more diamond drilling holes in the coming weeks. A further 6,000 metres of drilling is planned with more likely early next year. Copper is still potentially in the area as well.
Interim figures from diagnostics company Cambridge Nutritional Sciences (CNSL) showed the benefits of concentrating on its core personalised health and nutrition business. Revenues rose 44% to £4.9m and the loss was reduced. Production problems have been sorted out. There was strong growth in North America as management puts more resources into the region. A small full year loss is expected.
Lifestyle concierge services provider Ten Lifestyle (TENG) has moved into profit for the first time. It swung from a loss of £2.7m to a pre-tax profit of £3.2m thanks to economies of scale. There was also a tax credit recognised due to past tax losses. Investment in its digital platform and the international spread of business is helping Ten Lifestyle. New contract wins will help to increase this year’s pre-tax profit to £3.9m, according to Singer.
Gold explorer Oriole Resources (ORR) has announced heads of terms with contractor BCM International for the development of the Bibemi and Mbe gold projects in Ghana. BCM can earn up to 50% of the Bibemi project by making a cash payment of $500,000 and commit to spend $4m on the project. BCM will pay $1m in cash and spend a further $4m to earn a 50% stake in Mbe project.
Mercia Asset Management (MERC) has exited one of its older investments, raising £30.2m – a 2.7 times return on invested capital. Virtual reality games developer nDreams has been acquired by Aonic for £90.3m. This was Merica Asset Management’s largest investment and £3.8m of the proceeds are being reinvested in Aonic. The consideration was 17.5% ahead of the March 2023 valuation.
Duke Royalty (DUKE) generated a 17% increase in recurring cash revenues to £12.2m with a 35% increase in all cash revenues to £14.1m. During the period, Duke Royalty made one of its biggest initial investments in glass architectural products supplier Glasshouse Products. The $11.5m investment is backing a member of the original founding family buying back the business.
Maritime AI provider Windward (WNWD) has signed a five-year contract with a European national coastguard that is valued at €3.2m. The cash is expected to be paid upfront, while annual contract value will be increased by $700,000/year.
MAIN MARKET
Structural steel supplier Severfield (SFR) reported lower interim revenues, but a higher profit. In the six months to September 2023, revenues were 8% lower at £215.3m, but underlying pre-tax profit improved 17% to £14.2m. This includes an unchanged contribution of £600,000 from the India joint venture, while the modular products business made a maiden profit. The interim dividend was raised 8% to 1.4p/share. The UK and Europe order book is worth £482m, even though the £50m contract for Hertfordshire-based film studio Sunset Studios has been delayed.
Standard list shell Tertre Rouge Assets (TRE) is attempting to raise up to £50m to buy rare cars and acquire cash generative businesses involved in supercar events. Around £30m is set to be invested in a range of cars that have already been identified. They are worth between £1m and £10m. The plan is to generate gains on these investments -15% annual returns are targeted – while hiring them out to photoshoots and other income generating activities to cover overheads. The Run To Group Ltd, which organises supercar adventures to the Monaco Grand Prix, will also be acquired and management will remain with the business. The group’s board of directors includes racing drivers and business men and they can expand this business and others. There will be cash left over to buy other companies.
Packaging manufacturer and distributor Macfarlane Group (MACF) says lower volumes and prices meant that revenues fell 2% in the nine months to September 2023. New customers are being attracted and this will help future volumes. Margins are increasing.
Seraphim Space Investment Trust (SSIT) improved its NAV to 96.5p/share at the end of September 2023. That was helped by positive currency movements and a small uplift in valuations, predominantly due to a fundraising by an investee company.
Andrew Hore
Alan Green covers Cobra Resources #COBR & Vinanz #BTC on this week’s Stockbox Research Talks
Alan Green covers Cobra Resources #COBR & Vinanz #BTC on this week’s Stockbox Research Talks
ECR Minerals #ECR Board members attending Mines and Money – Resourcing Tomorrow
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce that Managing Director Nick Tulloch and Chief Operations Officer Mike Whitlow will be attending the Mines and Money – Resourcing Tomorrow show, which runs from the 28th-30th November 2023 at the Business Design Centre, 52 Upper St, Islington, London N1 0QH.
All existing and potential shareholders are invited to meet with Nick and Mike on the ECR Minerals stand at location E30. Appointments can be booked in advance with either Nick or Mike directly via the Resourcing Tomorrow event website by signing up at the link below:
https://tickets.lupevents.co.uk/Resourcing-Tomorrow-2023?CAT=CAT-INV2311
Non-Regulatory Announcement
FOR FURTHER INFORMATION, PLEASE CONTACT:
| ECR Minerals plc | Tel: +44 (0) 20 7929 1010 | |||
| David Tang, Non-Executive Chairman
Nick Tulloch, Managing Director Andrew Scott, Director |
||||
| Email: | ||||
| Website: www.ecrminerals.com | ||||
| SI Capital Ltd | Tel: +44 (0) 1483 413500 | |||
| Broker | ||||
| Nick Emerson | ||||
| Novum Securities Limited | Tel: +44 (0) 20 7399 9425 | |||
| Broker
Jon Belliss |
||||
| Brand Communications | Tel: +44 (0) 7976 431608 | |||
| Public & Investor Relations | ||||
| Alan Green | ||||
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has eight active exploration tenements and two in application (Ballarat and Tambo).
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”), which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company has also submitted a license application at Kondaparinga which is approximately 120km2 in area and located within the Hodgkinson Gold Province, 80km NW of Mareeba, North Queensland.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), Mercator Gold Australia Pty Limited has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited.
ECR holds a 90% interest in the Danglay gold project; an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, which has a 43-101 compliant resource. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina and can potentially receive up to US$2.7 million in aggregate across all licences.
#SVML Sovereign Metals LTD – Result of AGM
The Annual General Meeting (AGM) of Sovereign Metals Limited (Company) (ASX:SVM, AIM:SVML) was held today, 24 November 2023, at 10.00am (AWST).
The resolutions voted on were in accordance with the Notice of AGM previously advised to shareholders. All resolutions were decided on and carried by way of poll.
In accordance with Section 251AA of the Corporations Act 2001 and ASX Listing Rule 3.13.2, the details of the poll and proxies received in respect of each resolution are set out in the below summary.
ENQUIRIES
|
Dylan Browne Company Secretary info@sovereignmetals.com |
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat Harry Davies-Ball |
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Joint Brokers |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Tavistock PR |
+44 20 7920 3150 |
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Resolution |
Number of Proxy Votes |
Number and Percentage of Votes cast on the Poll |
Voting Method and Result |
|||||
|
For |
Against |
Abstain |
Proxy’s Discretion |
For |
Against |
Abstain |
||
|
1. Remuneration Report |
5,664,686 |
22,000 |
19,101,151 |
2,471,598 |
9,795,986 |
22,000 |
19,101,151 |
Carried on vote by poll |
|
2. Re-election of Director – Mr Ian Middlemas |
23,241,037 |
1,546,800 |
– |
2,471,598 |
27,372,337 |
1,546,800 |
– |
Carried on vote by poll |
|
3. Re-election of Director – Dr Julian Stephens |
23,241,037 |
1,546,800 |
– |
2,471,598 |
27,372,337 |
1,546,800 |
– |
Carried on vote by poll |
|
4. Renewal of Employee Incentive Equity Plan |
19,359,686 |
10,000 |
5,418,151 |
2,471,598 |
23,490,986 |
10,000 |
5,418,151 |
Carried on vote by poll |
|
5. Issue of Performance Rights to a Director – Mr Benjamin Stoikovich |
4,116,886 |
1,569,800 |
19,101,151 |
2,471,598 |
8,248,186 |
1,569,800 |
19,101,151 |
Carried on vote by poll |
|
6. Issue of Performance Rights to a Director – Mr Mark Pearce |
4,116,886 |
1,569,800 |
19,101,151 |
2,471,598 |
8,248,186 |
1,569,800 |
19,101,151 |
Carried on vote by poll |
|
7. Issue of Performance Rights to a Director – Mr Nigel Jones |
4,116,886 |
1,569,800 |
19,101,151 |
2,471,598 |
8,248,186 |
1,569,800 |
19,101,151 |
Carried on vote by poll |
|
8. Approval of Additional 10% Placement Capacity |
24,715,837 |
72,000 |
– |
2,471,598 |
28,847,137 |
72,000 |
– |
Carried on vote by poll |
Issue of Performance Rights
Following the shareholder approval of resolutions 5 to 7 today, the Company has issued 1,750,000 unlisted performance rights to Directors as disclosed in the Notice of AGM as follows:
· 700,000 performance rights subject to the “Grant of Mining Licence Milestone” that have no exercise price and expire 31 March 2026; and
· 1,050,000 performance rights subject to the “Final Investment Decision Milestone” that have no exercise price and expire 30 June 2026.
Following the issue of these performance rights, the Company has the following securities on issue:
· 563,003,401 fully paid ordinary shares;
· 34,549,598 unlisted options exercisable at A$0.535 each on or before 21 July 2024;
· 9,110,000 unlisted performance rights subject to the “Definitive Feasibility Study Milestone” expiring on or before 31 October 2025;
· 3,150,000 unlisted performance rights subject to the “Grant of Mining Licence Milestone” that have no exercise price and expire 31 March 2026; and
· 4,150,000 unlisted performance rights subject to the “Final Investment Decision Milestone” that have no exercise price and expire 30 June 2026.
Change of Directors’ Interest Notices are provided below.
Appendix 3Y
Change of Director’s Interest Notice
Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.
Introduced 30/09/01 Amended 01/01/11
|
Name of entity SOVEREIGN METALS LIMITED |
|
ABN 71 120 833 427 |
A)
We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.
|
Name of Director |
Benjamin Stoikovich |
|
Date of last notice |
29 September 2023 |
Part 1 – Change of director’s relevant interests in securities
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Direct or indirect interest |
Direct and Indirect
|
|
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.
|
Selwyn Capital Limited (beneficial interest)
|
|
Date of change |
24 November 2023 |
|
No. of securities held prior to change |
(a) 4,190,000 (b) 600,000 (c) – (d) – |
|
Class |
(a) Ordinary Fully Paid Shares (b) Unlisted Performance Rights subject to the “Definitive Feasibility Study Milestone” expiring 31 October 2025 (c) Unlisted Performance Rights subject to the Grant of Mining Licence Milestone” expiring 31 March 2026 (d) Unlisted Performance Rights subject to the “Final Investment Decision Milestone” expiring 30 June 2026 |
|
Number acquired |
(c) 350,000 (d) 500,000 |
|
Number disposed |
Not applicable |
|
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation
|
Not applicable – see nature of change below |
|
No. of securities held after change |
(a) 4,190,000 (b) 600,000 (c) 350,000 (d) 500,000 |
|
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back |
Issue of Performance Rights following shareholder approval |
Part 2 – Change of director’s interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Detail of contract |
Not applicable |
|
Nature of interest
|
Not applicable |
|
Name of registered holder (if issued securities)
|
Not applicable |
|
Date of change |
Not applicable |
|
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed
|
Not applicable |
|
Interest acquired |
Not applicable |
|
Interest disposed |
Not applicable |
|
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation
|
Not applicable |
|
Interest after change |
Not applicable |
Part 3 – +Closed period
|
Were the interests in the securities or contracts detailed above traded during a +closed period where prior written clearance was required? |
No |
|
If so, was prior written clearance provided to allow the trade to proceed during this period? |
Not applicable |
|
If prior written clearance was provided, on what date was this provided? |
Not applicable |
|
Initial notification/Amendment |
Initial |
|
LEI |
213800NSPXSASTENFQ34 |
|
Place of transaction |
Australian Securities Exchange (ASX) |
Appendix 3Y
Change of Director’s Interest Notice
Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.
Introduced 30/09/01 Amended 01/01/11
|
Name of entity SOVEREIGN METALS LIMITED |
|
ABN 71 120 833 427 |
B)
We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.
|
Name of Director |
Mark Pearce |
|
Date of last notice |
29 September 2023 |
Part 1 – Change of director’s relevant interests in securities
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Direct or indirect interest |
Direct and Indirect
|
|
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.
|
· Mr Mark Pearce and Mrs Natasha Pearce <NMLP Family A/C> (trustee and beneficial interest) · Apollo Group Pty Ltd (director and indirect shareholder) · Crystal Brook Investments Pty Ltd (director and beneficial interest)
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|
Date of change |
24 November 2023 |
|
No. of securities held prior to change |
(a) 4,520,842 (b) 300,000 (c) – (d) – |
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Class |
(a) Ordinary Fully Paid Shares (b) Unlisted Performance Rights subject to the “Definitive Feasibility Study Milestone” expiring 31 October 2025 (c) Unlisted Performance Rights subject to the Grant of Mining Licence Milestone” expiring 31 March 2026 (d) Unlisted Performance Rights subject to the “Final Investment Decision Milestone” expiring 30 June 2026 |
|
Number acquired |
(c) 250,000 (d) 400,000
|
|
Number disposed |
Not applicable
|
|
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation
|
Not applicable – see nature of change below
|
|
No. of securities held after change |
(a) 4,520,842 (b) 300,000 (c) 250,000 (d) 400,000 |
|
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back |
Issue of Performance Rights following shareholder approval |
Part 2 – Change of director’s interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Detail of contract |
Not applicable |
|
Nature of interest |
Not applicable |
|
Name of registered holder (if issued securities) |
Not applicable |
|
Date of change |
Not applicable |
|
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed
|
Not applicable |
|
Interest acquired |
Not applicable |
|
Interest disposed |
Not applicable |
|
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation
|
Not applicable |
|
Interest after change |
Not applicable |
Part 3 – +Closed period
|
Were the interests in the securities or contracts detailed above traded during a +closed period where prior written clearance was required? |
No |
|
If so, was prior written clearance provided to allow the trade to proceed during this period? |
Not applicable |
|
If prior written clearance was provided, on what date was this provided? |
Not applicable |
|
Initial notification/Amendment |
Initial |
|
LEI |
213800NSPXSASTENFQ34 |
|
Place of transaction |
Australian Securities Exchange (ASX) |
Appendix 3Y
Change of Director’s Interest Notice
Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.
Introduced 30/09/01 Amended 01/01/11
|
Name of entity SOVEREIGN METALS LIMITED |
|
ABN 71 120 833 427 |
C)
We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.
|
Name of Director |
Nigel Jones |
|
Date of last notice |
29 September 2023 |
Part 1 – Change of director’s relevant interests in securities
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Direct or indirect interest |
Indirect
|
|
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.
|
Redbeck Partners Ltd (beneficial interest) |
|
Date of change |
24 November 2023 |
|
No. of securities held prior to change |
(e) 225,000 (f) 300,000 (g) – (h) –
|
|
Class |
(e) Ordinary Fully Paid Shares (f) Unlisted Performance Rights subject to the “Definitive Feasibility Study Milestone” expiring 31 October 2025 (g) Unlisted Performance Rights subject to the Grant of Mining Licence Milestone” expiring 31 March 2026 (h) Unlisted Performance Rights subject to the “Final Investment Decision Milestone” expiring 30 June 2026 |
|
Number acquired |
(c) 100,000 (d) 150,000 |
|
Number disposed |
Not applicable |
|
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation
|
Not applicable – see nature of change below |
|
No. of securities held after change |
(a) 225,000 (b) 300,000 (c) 100,000 (d) 150,000
|
|
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back |
Issue of Performance Rights following shareholder approval |
Part 2 – Change of director’s interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.
|
Detail of contract |
Not applicable |
|
Nature of interest
|
Not applicable |
|
Name of registered holder (if issued securities)
|
Not applicable |
|
Date of change |
Not applicable |
|
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed
|
Not applicable |
|
Interest acquired |
Not applicable |
|
Interest disposed |
Not applicable |
|
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation
|
Not applicable |
|
Interest after change |
Not applicable |
Part 3 – +Closed period
|
Were the interests in the securities or contracts detailed above traded during a +closed period where prior written clearance was required? |
No |
|
If so, was prior written clearance provided to allow the trade to proceed during this period? |
Not applicable |
|
If prior written clearance was provided, on what date was this provided? |
Not applicable |
|
Initial notification/Amendment |
Initial |
|
LEI |
213800NSPXSASTENFQ34 |
|
Place of transaction |
Australian Securities Exchange (ASX) |
First Class Metals #FCM – Placing of 10,050,000 ordinary shares of £0.001 each in the capital of the Company to raise £603,000
First Class Metals PLC (“First Class Metals” “FCM” or the “Company”) is a UK metals exploration company focused on the discovery of economic metal deposits across its extensive Canadian – northwest Ontario, land holding is pleased to announce that it has completed a placing of 11,990,665 ordinary shares of £0.001 par value (the “Placing Shares”) at a price of 6 pence per Placing Share (the “Placing Price”), raising gross proceeds of £603,000 and satisfying fees of £48,000
The Placing Price represents a 16% discount to the mid-market closing price of the Company’s shares on 21 November 2023, the date of the arrangement of the Placing. No warrants are being issued in connection with this placing.
Clear Capital Markets Limited & First Equity Limited acted as placing agents in respect of the Placing.
Use of Proceeds
· Development of a drill program at the highly prospective Zigzag lithium/Critical Metals Property.
· Full Repayment of the Sanderson Capital Partners Convertible Loan Note (the “CLN”).
The balance of the placing proceeds will primarily be used to develop a drilling program at the Company’s Zigzag lithium/Critical Metals property in Northern Ontario. Further details of the intended work will be released shortly.
The Company intends to repay in full the CLN, which stands at £500,000 drawn.
Background
With the recent granting of the Enable and McKellar Exploration Permits, the Company controls six permitted properties in Ontario, Canada, encompassing nearly 200km² of land. Within this area, the Company has identified priority drill targets of robust prospectivity across each of our properties, holding what is believed to be significant potential for exploration and discovery.
Considering the current climate in terms of timescales, efforts, and physical costs involved in obtaining permits, the Company believes that having six fully permitted properties is a significant advantage. These properties are either already drill ready or in the process of becoming so (some of which are true ‘District-Scale’ size), providing the Company with substantial flexibility moving forward. This level of readiness allows the Company to capitalize on opportunities efficiently and adapt to changing market conditions. The Board expects that this portfolio of permitted properties will position the Company for success and maximize its potential for future growth.
The initial focus of the Company post this fund-raising will be on advancing exploration activities on the highly prospective Zigzag lithium/Critical Metals property. Currently, the Company has channel sample assays pending, which will provide valuable data to plan its next steps. Additionally, the Company is working on formulating further operations on this property, with plans to commence drilling activities during the upcoming winter period. The Company is committed to unlocking the potential of the property and is excited about the opportunities that lie ahead.
Director’s-Stock Lending Agreement(s)
The Company does not presently have sufficient headroom to enable the issue and admission of the Placing Shares which are required to be issued pursuant to the placing without the production of a FCA approved prospectus. The Company is therefore proposing that the directors, James Knowles and Ayub Bodi, each loan a number of shares amounting, in aggregate, to the Placing Shares, to the Company by means of a share loan agreement (the “Share Lending Agreement”), to facilitate the placing of the Placing Shares by the Company. This loan involves no consideration being paid or security granted to James Knowles or Ayub Bodi, other than the fee charged under the Share Lending Agreement, described below.
The placing of the Placing Shares is expected to be completed on or around 30 November 2023.
The Share Lending Agreements provide for the allotment of an aggregate of 11,990,665 new ordinary shares in the Company to James Knowles & Ayub Bodi by 30 June 2024 to replace the shares loaned in terms of the Share Lending Agreement.
A fee, equal to 8.25% per annum of the values of the Placing Shares on the day of Placing will be charged on each loan, pro-rata for the period of the loan, which will be paid in cash unless, if agreed between the Company and the relevant director that such fee should be satisfied by the allotment of ordinary shares in the Company.
Related Party Transaction
James Knowles and Ayub Bodi are directors of the Company. The Share Lending Agreement is considered to be a related party transaction (the “Related Party Transaction”).
Marc Sale, Marc Bamber and Andrew Williamson, being the independent directors for the purpose of this Related Party Transaction consider that the terms and conditions are fair and reasonable.
James Knowles, Executive Chairman of First Class Metals PLC Commented:
“We decided as a board it was necessary to take advantage of this opportunity in what is an otherwise difficult and extremely competitive market to raise funds to enable the development of the high impact first drill program on the Zigzag lithium/Critical Metals Property and also repay the outstanding CLN.
As a company, we understand the importance of maintaining a strategic balance between developing our highly prospective portfolio and effectively managing our available financial resources. We aim to advance our projects to a stage where they become conducive to monetise. This approach ensures that we maximize the potential of our portfolio while optimizing resource allocation. We are dedicated to carefully navigating this balance and strategically driving our company’s growth and success.
I am pleased to be able to assist the company at this time by loaning a significant portion of my holdings to First Class Metals. By doing so, I willingly accept the commercial risk associated with this transaction. My decision to make this loan stems from my utmost confidence in the assets held by First Class Metals, as well as the exceptional capabilities of our operational team. I firmly believe that through their expertise and dedication, we will achieve success and deliver value for all stakeholders involved.
Furthermore, at this point, the Share Loans will reduce the impact of dilution for all shareholders until the Company is in a position to allot new shares to return the loan and allows all shareholders to benefit from any potential uplift when we have tangible results published, from our more advanced projects.”
Issue of Fee Shares
In addition, 1,940,665 Placing Shares are being placed with various professional partners, including Sanderson Capital Partners (who have now made a new small non-dilutive working capital facility available to the company), to satisfy fees due in connection with the fundraise and also to satisfy outstanding professional fees from parties who have opted to take payment in shares over a cash payment. We welcome this commitment to the Company.
For Further Information:
|
James Knowles, Executive Chairman |
07488 362641 |
|
|
Marc J Sale, CEO |
07711 093532 |
|
|
Ayub Bodi, Executive Director |
07860 598086 |
First Equity Limited
(Financial Adviser & Broker)
|
Jonathan Brown |
0207 3742212 |
|
|
Jason Robertson |
0207 3742212 |
Clear Capital Markets Limited
(Placing Agents)
|
Bob Roberts |
0203 8696081 |
