REG - ALT Resources PLC - Proposed acquisition & admission to trading on AIM

Alt ResourcesAnnouncement

24/02/2025 07:00

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RNS Number : 0764Y  ALT Resources PLC  24 February 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (596/2014/EU) AS THE SAME HAS BEEN RETAINED IN UK
LAW AS AMENDED BY THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019 (SI
2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN. NOT FOR RELEASE,
PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN,
INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF
THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

 

ALT Resources PLC

("ALTR" or the "Company")

 

Proposed Acquisition of Cash-Generative Mining Royalty

 

Notice of Intention to Request Voluntary Cancellation of Listing on the
Official List

 

Proposed Board Appointment

 

And

 

 Proposed Admission to Trading on the AIM market of the London Stock Exchange
("AIM")

 

Further to its announcement of 29 October 2024, ALTR, the mining royalty and
streaming company, is pleased to announce that it has entered into a
conditional royalty agreement (the "Royalty Agreement") to acquire a
cash-generative mining royalty (the "Proposed Acquisition"). Completion of the
Proposed Acquisition will be subject to certain conditions, including, inter
alia, due diligence, legal documentation, fundraising, and admission of the
Company's entire issued and to be issued share capital to trading on AIM.

 

Prad Mazumder, Director of ALTR commented:

 

"We are excited to commence our royalty investment journey through a
conditional agreement to acquire an interest in a near-producing gold asset
with a fast-growing ASX-listed mining company with a top-tier resource base.
This investment is expected to be value accretive to Alt Resources
shareholders, as we believe the investment will generate significant revenues
in the near-term, provide exposure to an appreciating gold price, and lock in
a high net asset value for ALTR."

 

The Proposed Acquisition will establish ALTR as a new, growth-focused,
diversified mining royalty and streaming company with a pipeline of additional
opportunities.

 

Concurrent with the completion of the Proposed Acquisition, the Company
intends to seek the cancellation of the admission of its ordinary shares
("Shares") from the Official List of the FCA and its trading on the London
Stock Exchange's ("LSE") main market for listed securities (together, the
"Cancellation"), and seek admission of its Shares to trading on AIM
("Admission"). The directors of the Company (the "Directors") consider AIM a
more suitable market and regulatory environment for ALTR, providing greater
flexibility with regard to corporate transactions. Concurrent with Admission,
ALTR intends to conduct a financing (the "Financing").

 

A further update regarding the Proposed Acquisition and the Financing will be
made in due course.

 

 

Highlights

 

-     Establish ALTR as a growth-focused, diversified mining royalty and
streaming company aiming to provide investors with exposure to both critical
and precious metals.

-     The Royalty Agreement allows the Company to conditionally acquire a
cash-generative royalty from Theta Gold Mines Limited ("Theta"). Theta is an
Australian Securities Exchange-listed company (ASX: TGM). Through its
controlling subsidiaries in South Africa, Theta's gold assets consist of over
6.1Moz of gold in shallow underground and open-pit JORC resources in the
historically prolific gold mining region in the Mpumalanga Province of South
Africa along with a plant and Tailings-Storage-Facility on-site, ready to be
expanded for production.

-     The Proposed Acquisition facilitates the commencement of
construction of Theta's initial CIL gold plant build.

-     The Directors believe mining royalty and streaming assets represent
an attractive opportunity for shareholders and new investors, providing
exposure to commodity prices with a lower risk profile than mining equities.

-     The Company's strategy to provide alternative finance in the mining
sector by creating new royalties and continued consolidation of existing
royalties and streams available on attractive terms, takes advantage of gaps
in the market under-exploited by peers.

-     Strong board with significant experience, including in generating
significant value for shareholders through the royalty and streaming model,
which is well-positioned to execute its strategy.

-     Upon Admission, Aaron Kidd will join the ALTR Board as an
independent Non-Executive Director.

 

Pursuant to UK Listing Rule 21.2.17R, the Company must give at least 20
business days' notice of the intended Cancellation. The Company expects the
Cancellation to become effective from 24 March 2025 (or such later date as the
Company may announce), the anticipated completion date for the Proposed
Acquisition and Admission. The Company will update shareholders in due course
once the timetable for Cancellation is confirmed. Immediately following the
Cancellation, it is intended that the Shares will be admitted to trading on
AIM.

 

While matters relating to the Proposed Acquisition, Financing and Admission
are at an advanced stage, shareholders should note that there remain several
matters upon which completion of the Proposed Acquisition, Financing and
Admission is conditional. Accordingly, there can be no certainty that the
Proposed Acquisition, Financing and Admission will proceed.

 

Proposed Board appointment

 

Upon Admission, Aaron Kidd will join the ALTR Board as an independent
Non-Executive Director. Mr. Kidd has nearly 20 years of global experience in
Tier 1 investment banking, private equity and advisory, leading M&A and
financing strategy and execution in complex transactions, particularly in
natural resources. Aaron is currently Executive Director of Zephyr Capital and
Non-Executive Director of ASX-Listed Vmoto Limited. Previously, Aaron was Head
of Australia for Appian Capital Advisory LLP, the world's largest natural
resources specialised private equity fund, following various roles at Credit
Suisse, Azure Capital and Goldman Sachs. Mr Kidd holds a Bachelor of Laws
(Honours) and Bachelor of Commerce (Honours) from the University of Western
Australia.

 

Aaron Reade Kidd (aged 41), an Australian citizen, has the following current
and former directorships:

 

Current:

Arbitrage Pty Ltd.

Long Volatility Pty Ltd.

PE Two Pty Ltd.

Vmoto Limited.

Zephyr Capital Pty Ltd.

 

Previous:

PE One Pty Ltd. (Deregistered)

Skeleton Coast SPV Pty Ltd.

VC One Pty Ltd. (Deregistered)

 

Except as set out above, no disclosure obligations arise under paragraphs (1)
to (6) of UKLR 6.4.8 R of the UK Financial Conduct Authority's Listing Rules
in respect of Mr. Kidd's appointment.

 

 

For further information:

www.altresources.co.uk (http://www.altresources.co.uk/)

 

ALT Resources PLC
stacey@altresources.co.uk

Paul Welch, Chairman

 

Celicourt Communications                     +44 207 770
6424 / altresources@celicourt.uk

Mark Antelme / Jimmy Lea

 

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