REG - Alba Mineral Resrcs. - GROC Update: Share Placing

Alba Mineral ResourcesAnnouncement

22/11/2023 09:00

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RNS Number : 3136U  Alba Mineral Resources PLC  22 November 2023

Alba Mineral Resources Plc / EPIC: ALBA / Market: AIM / Sector: Mining

 

22 November 2023

Alba Mineral Resources Plc

("Alba" or the "Company") 

 

 

GROC Update

Share Placing

 

 

Alba Mineral Resources Plc (AIM: ALBA) notes the RNS today by its portfolio
company, GreenRoc Mining Plc ("GreenRoc"), that it has raised gross proceeds
of £460,786 by way of a placing of 18,431,452 new ordinary shares of 0.1
pence each (the "Placing Shares") at a price of 2.5 pence per Placing Share
(the "Placing Price") (the "Placing"). Following the Placing, Alba will have a
revised shareholding in GreenRoc of 38.17%.

 

The GreenRoc announcement is set out below without material changes.

 

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Placing to raise £461k

 

GreenRoc Mining Plc (AIM: GROC), a company focused on the development of
critical mineral projects in Greenland, is pleased to announce that it has
raised gross proceeds of £460,786 by way of a placing of 18,431,452 new
ordinary shares of 0.1 pence each (the "Placing Shares") at a price of 2.5
pence per Placing Share (the "Placing Price") (the "Placing").

 

The net proceeds of the Placing will primarily be used to complete the
feasibility study of a graphite anode processing plant and to undertake
ongoing work towards the completion of Environmental and Social Impact
Assessment studies for the Company's Amitsoq Project in Greenland. The net
proceeds will also support further commercial negotiations with potential
offtake and financial partners, and general working capital requirements.

 

Participants in the Placing include GreenRoc Chief Executive Officer Stefan
Bernstein, Non-executive Chairman George Frangeskides and Independent
Non-executive Director Mark Rachovides, who each subscribed for £5,000 of
shares.

 

GreenRoc's CEO, Stefan Bernstein, commented:

"It is hugely satisfying that we now have the funding in place to complete the
full feasibility study of the graphite anode processing plant. It will provide
us with a comprehensive business case and clear path to building both the
pilot scale and full production plant. With this, and our own stream of
high-quality feedstock from our Amitsoq graphite mine in Greenland, GreenRoc
aims to become one of only a handful of upcoming vertically integrated
graphite anode producers globally and a strategically important graphite anode
supplier to the European electric vehicle battery market.

 

"I am also very pleased that this fundraise will allow us to complete the
remaining parts of the Environmental and Social Impact Assessments which, I am
convinced, will lead to our application for an exploitation permit at Amitsoq
being positively received in 2024.

 

"I would like to thank our group of supportive investors who continue to show
their confidence in what we are building together. We will work hard to
greatly enhance the value of your investments."

 

 

Use of Proceeds

The proceeds of the Placing are primarily being used to complete the
feasibility study on a processing plant to produce active anode material for
electric vehicle batteries using Amitsoq graphite concentrate as feedstock.
The feasibility study is being undertaken in conjunction with specialist
subcontractors Benchmark Mineral Intelligence, ProGraphite, SLR and Decision
Risk Analytics, and is supported by a £250,000 grant from the UK's Advanced
Propulsion Centre (see RNS Oct 9, 2023) towards the full costs of ca.
£410,000. The feasibility study is planned to be concluded in Q2 2024.

 

The Placing will also cover the estimated remaining costs to complete the
Environmental and Social Impact Assessments (EIA and SIA, respectively), which
will be delivered in 2024. A change in Greenlandic law from 1 January 2024
allows for the granting of an exploitation permit prior to the submission of
the final EIA and SIA, subject to the approval of the EIA and SIA by the
Greenlandic Mining Authority. As such, the Company plans to submit its
application for an exploitation permit in 2024.

 

Directors' Dealing

The table below provides details of the purchase of Ordinary Shares by
Directors of the Company under the Placing and their resulting shareholding
following the purchase. The PDMR form is set out at the bottom of this
announcement.

 

 Director             Ordinary Shares in which the Placee is interested prior to the Placing  Number of Placing Shares subscribed for  Value of Placing Shares subscribed for  Ordinary Shares in which the Placee is interested following the Placing  % of Enlarged Share Capital
 George Frangeskides  200,001                                                                 200,000                                  £5,000                                  400,001                                                                  0.24%
 Mark Rachovides      80,000                                                                  200,000                                  £5,000                                  280,000                                                                  0.17%
 Stefan Bernstein     1,220,000                                                               200,000                                  £5,000                                  1,420,000                                                                0.86%

 

George Frangeskides', Mark Rachovides' and Stefan Bernstein's subscription for
Placing Shares (the "Subscription") constitutes a related party transaction as
defined by the AIM Rules. The independent directors of the Company (being all
directors of the Company other than George Frangeskides, Mark Rachovides and
Stefan Bernstein) consider, having consulted with Cairn Financial Advisers
LLP, the Company's nominated adviser, that the terms of the Subscription are
fair and reasonable insofar as the Company's shareholders are concerned.

 

Warrants

 

As a commission fee for raising £86,900 of funding, the Company has granted a
total of 208,561 warrants with an exercise price of 2.5 pence to G-Force
Capital Ltd (the "Warrants"). The Warrants are exercisable until 21 November
2025.

 

Share Placing: Admission to Trading on AIM and Total Voting Rights

 

Application will be made for the Placing Shares, which will rank pari passu
with the existing ordinary shares of 0.1 pence each, to be admitted to trading
on AIM ("Admission"). It is expected that Admission will become effective and
that dealings will commence at 8:00 a.m. on or around 27 November2023.

 

Following the issue of the Placing Shares, the total issued share capital of
the Company will consist of 165,114,162 ordinary shares of 0.1 pence each. The
Company does not hold any ordinary shares in Treasury, therefore the total
current voting rights in the Company following Admission will be 165,114,162.
This figure 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.

 

Market Abuse Regulation (MAR) Disclosure

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.

 

 

**ENDS**

 

 

For further information, please visit www.albamineralresources.com
(http://www.albamineralresources.com/)  or contact:  

Alba Mineral Resources Plc  

George Frangeskides, Executive Chairman
+44 20 3950 0725 

 SPARK Advisory Partners Limited (Nomad)   

Andrew Emmott  / Neil Baldwin
    +44 20 3368 3555 

CMC Markets plc (Broker)  

Thomas Smith / Douglas Crippen
  +44 20 3003 8632 

 St Brides Partners (Financial PR)  

Isabel de Salis / Catherine
Leftley
alba@stbridespartners.co.uk 

 

Alba's Projects and Investments

 Mining Projects Operated by Alba   Location   Ownership
 Clogau (gold)                      Wales      100%
 Dolgellau Gold Exploration (gold)  Wales      100%
 Gwynfynydd (gold)                  Wales      100%
 Investments Held by Alba           Location   Ownership
 GreenRoc Mining Plc (mining)       Greenland  38.17%
 Horse Hill (oil)                   England    11.765%

 

 

 

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