REG-Conroy Gold & Natural Resources Plc: Fundraising of €240,000

Conroy Gold and Natural ResourcesAnnouncement

15/05/2025 08:30

 

PRIOR TO PUBLICATION, THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT WAS
DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF
REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.
WITH THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INFORMATION IS NOW CONSIDERED
TO BE IN THE PUBLIC DOMAIN.

IN ADDITION, MARKET SOUNDINGS WERE TAKEN IN RESPECT OF CERTAIN OF THE MATTERS
CONTAINED WITHIN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS
BECAME AWARE OF INSIDE INFORMATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT
VIA A REGULATORY INFORMATION SERVICE, THOSE PERSONS THAT RECEIVED INSIDE
INFORMATION IN A MARKET SOUNDING ARE NO LONGER IN POSSESSION OF SUCH INSIDE
INFORMATION, WHICH IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

15 May 2025

      

Conroy Gold and Natural Resources plc

(“Conroy Gold” or the “Company”)

Fundraising of €240,000

Conroy Gold and Natural Resources plc (AIM: CGNR), the gold exploration and
development company focused on Ireland, is pleased to announce a fundraising
of €240,000 (approximately £203,400). The fundraise, which will support the
Company’s ongoing work at its Clontibret deposit as well as ongoing
discussions about investment with potential strategic and financial partners
in the project, has been undertaken via an issue of unsecured convertible loan
notes (“CLNs” or “Loan Notes”) to a combination of new investors and
existing shareholders in the Company (the “Fundraise”).

Highlights
* €240,000 raised from new and existing investors.
* Unsecured and unlisted CLNs issued. 
* Conversion price of £0.10 per share, a 277% premium to the closing
mid-market price of 2.65 pence for the Company’s ordinary shares of €0.001
(“Ordinary Shares”) on 14 May 2025 (last practicable date prior to this
announcement).
* Proceeds of the Fundraise to be used to supportongoing work at its
Clontibret deposit, as well as partnership discussions for asset level
investment. The work on the Clontibret resource includes re-logging of drill
core from the deposit and the construction of a more robust 3D geological
model, in tandem with follow up exploration activity in relation to antimony.
Key Terms of CLNs

 AMOUNT            €240,000                                                                                                                                                                                                                                                                                              
 TERM              3 years                                                                                                                                                                                                                                                                                               
 SECURITY          Unsecured                                                                                                                                                                                                                                                                                             
 INTEREST RATE     7.5% per annum                                                                                                                                                                                                                                                                                        
 CONVERSION PRICE  10p per share                                                                                                                                                                                                                                                                                         
 CONVERSION TERMS  * In the event conversion occurs in year 1, a full year’s interest of 7.5% applies. Thereafter the interest amount converting will be the amount of interest accrued as at the date of conversion (effective price of 9.3p year 1).                                                                   
                     * Conversion will be at the discretion of the CLN holder during the term of the Loan Notes but shall be automatic if the volume-weighted average price of the Ordinary Shares exceeds 20p for more than five trading days during any ten-day period or in the event of a takeover of the company.   

 

Further Background

The Company has decided to raise these funds via an issue of unsecured
convertible loan notes rather than through a conventional placing of new
equity. In making this decision, the Board was mindful of the absolute need to
avoid immediate and material dilution for shareholders, with Conroy Gold’s
share price currently at a level which the Board believes undervalues the
current and future prospects of the Company.

With this in mind, the Board is particularly pleased that a number of new
investors and existing shareholders have recognised this material
undervaluation of the Company’s shares, by investing in the Loan Notes with
a conversion price of 10 pence per share, compared to the closing mid-market
price of 2.65 pence of the Ordinary Shares of Conroy Gold on 14 May 2025.

The Board is also working on a prospective plan to address the payables owing
to current and former board members in relation to both salaries and
directors’ fees through linking the ultimate payment of amounts owing to
future commercial production and total shareholder return.

DIRECTOR AND SUBSTANTIAL SHAREHOLDER PARTICIPATION IN THE FUNDRAISE

The Company’s Chairman, John Sherman, participated in the fundraise through
the subscription for €40,000 worth of Loan Notes. 

Mr Philip Hannigan (a substantial shareholder in the Company as defined in
the AIM Rules for Companies) is participating in the fundraise through the
subscription by Knockeader Investments Limited for €50,000 worth of Loan
Notes. Mr Hannigan, who has a notified ordinary shareholding representing
18.25 per cent of the issued share capital of the Company, is a material
shareholder in Knockeadar Investments Limited.

Mr John Sherman, the Company's Chairman, commented: "The Board is pleased to
announce this fundraising, and particularly welcomes the willingness of both
new investors and existing shareholders to invest in the Company at a clear
premium to our share’s current market price.  The funding will support the
continuing re-logging and 3D geological modelling programme for Clontibret, an
effort that is delivering insights in respect to controls for high grade gold
mineralisation and the antimony potential in the deposit.  These learnings
will inform our choices for the next cycle of major investment in the ‘Discs
of Gold’ project, the structure and funding of which remains under
discussion with potential strategic and financial partners.” 

About the ‘Discs of Gold’ Project

Conroy Gold’s ‘Discs of Gold’ project in Ireland is defined by two
parallel district scale gold trends, extending over c.90km, which are 100 per
cent. held under license by the Company, and anchored by the Clontibret gold
deposit. The Clontibret target area contains a currently defined 517Koz gold
resource @ 2.0 g/t Au (320Koz Au Indicated and 197Koz Au Inferred (2017))
which remains open in multiple directions. The Company has identified a
further seven gold targets in its license area with the Clay Lake and
Creenkill gold targets being of particular interest.  Gold occurs in multiple
styles in the Company’s license area, including free gold, refractory gold
in arsenopyrite and gold associated with pyrite and antimony (stibnite),
suggesting multiple hydrothermal events seeded the deposit. There are clear
geological analogies between the “Discs of Gold” targets and large gold
deposits in Southeastern Australia and Atlantic Canada.

 

For further information please contact:

 Conroy Gold and Natural Resources PLC                                                          Tel: +353-1-479-6180                            
 John Sherman, Chairman Maureen Jones, Managing Director                                                                                        
 Allenby Capital Limited (Nomad)                                                                Tel: +44-20-3328-5656                           
 Nick Athanas / Nick Harriss                                                                                                                    
 Peterhouse Capital Limited (Broker) Lucy Williams / Duncan Vasey  Lothbury Financial Services  Tel: +44-20-7469-0930    Tel: +44-20-3290-0707  
 Michael Padley                                                                                                                                 
 Hall Communications                                                                            Tel: +353-1-660-9377                            
 Don Hall                                                                                                                                       

 

Visit the website at: www.conroygold.com

 

 

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