REG - ACG Metals Ltd. - Sponsor Loan Conversion

ACG MetalsAnnouncement

16/10/2024 07:00

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RNS Number : 3247I  ACG Metals Limited  16 October 2024

16 October 2024

ACG METALS LIMITED

 

("ACG" or the "Company")

 

 

Sponsor Loan Conversion

 

Correction To The Prospectus

 

ACG Metals Limited is pleased to announce the successful conversion of part of
its existing sponsor loans with Argentem Creek Partners LP, De Heerd
Investments Limited ("De Heerd Sponsor") and ACG Mining Limited (the "Sponsor
Loans") into equity. This follows ACG's successful acquisition of the
Gediktepe Mine in Türkiye from Lidya Madencilik Sanayi ve Ticaret Anonim
Şirketi ("Lidya") and the Company's re-admission to listing on the Official
List of the Financial Conduct Authority and to trading on the London Stock
Exchange as ACG Metals Limited.

 

Certain of the co-sponsors have elected to convert their Sponsor Loans into
Class A Ordinary Shares and unlisted warrants to subscribe for Class A
Ordinary Shares ("Warrants"). A total of US$4,549,260 of Sponsor Loans will be
converted into 758,207 Class A Ordinary Shares at a conversion price of
US$6 per share (the "Sponsor Shares") (discarding a rounding difference of
three Class A Ordinary Shares). In addition, Warrants will be granted which
entitle the co-sponsors to subscribe for up to 758,207 Class A Ordinary Shares
at a price of $6.90 per share with a final exercise date of 3 October 2029.

 

This conversion strengthens the Company's position as it looks to make further
acquisitions and deliver on its strategy. Following the Sponsor Loan
conversion and the allotments referred to in the announcement dated today's
date "Notification of transactions by Persons Discharging Managerial
Responsibilities ("PDMRs") and a Person Closely Associated ("PCA") to a PDMR",
the Sponsor Shares will represent approximately 4% of the Company's issued
share capital.

 

Correction to the Re-Admission Prospectus and Supplementary Prospectus

 

The Re-Admission Prospectus dated 7 August 2024 and Supplementary Prospectus
dated 29 August 2024 aggregated the percentage holdings of Class A Ordinary
Shares and warrants, respectively, of De Heerd Sponsor and Frederick Kwok. To
clarify, De Heerd Sponsor and Frederick Kwok are separate shareholders and
entities. Following the aforementioned transactions, De Heerd Sponsor will be
a major shareholder holding 6.7% of issued share capital (a major shareholder
is defined as holding more than 5% of the voting rights in the Company).

 

Application will be made for the new Class A Ordinary Shares to be listed on
the equity shares (transition category) of the Official List of the Financial
Conduct Authority and to trading on the London Stock Exchange and a further
announcement confirming such admission will be made in due course.

 

Artem Volynets, Chairman & CEO of ACG, said:

"Today's successful partial conversion of the Sponsor Loans into equity
represents a vote of confidence by our long-term investors in the Company's
future. It underlines the momentum building at ACG, after our first successful
acquisition, and we are actively exploring other material targets to help
expand our portfolio and consolidate the copper market."

 

For further information, please contact:

 

Palatine

Communications advisor

Conal Walsh / James Gilheany/ Kelsey Traynor/ Richard Seed

acg@palatine-media.com (mailto:acg@palatine-media.com)

 

About ACG:

ACG is a company with a vision to consolidate the critical metals industry,
starting with the copper sector. Through a series of roll-up acquisitions, ACG
intends to become a premier supplier of copper and other critical metals to
the western OEM supply chain, with best-in-class ESG and carbon footprint
characteristics.

 

In September 2024, ACG successfully completed the acquisition of the Gediktepe
Mine, an operating open pit mine in Türkiye currently producing 34 koz of
gold and 361 koz of silver. Gediktepe is expected to transition to primary
copper and zinc production from 2026 and will target annual steady-state
copper equivalent production of 20-25 kt.

 

ACG's team has extensive M&A experience built through decades spent at
blue-chip multinationals in the sector. The team brings a significant network
as well as a commitment to ESG principles and strong corporate governance.

For further information please visit: https://www.acgcorp.co/
(https://www.acgcorp.co/)

 

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