REG-Conroy Gold & Natural Resources Plc: Fundraising of £259k

Conroy Gold and Natural ResourcesAnnouncement

09/10/2024 17:00

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.

 


 

Conroy Gold and Natural Resources plc

(“Conroy Gold” or the “Company”)
9 October 2024
Fundraising of £259,000

 
* Fundraising of £259,000 at 4.75 pence per share
 
* Significant Director participation in the Fundraising
 
* Warrants to be issued to participants in the Fundraising, exercisable at
9.5p. 
 
* Funds to be used to progress structural analysis and other work on
mineralisation controls in Clontibret, Clay Lake and Creenkill in support of
ongoing work on securing joint venture partnerships and/or strategic
investment together with general working capital purposes.
 

Conroy Gold and Natural Resources plc (AIM: CGNR), the gold exploration and
development company focused on Ireland and Finland, today announces a placing
and subscription to raise a total of £259,000 (before expenses) for the
Company.

 

FUNDRAISING HIGHLIGHTS

 
* Placing of £87,500 (before expenses) through the issue of 1,842,105 new
ordinary shares of €0.001 each (“Ordinary Shares”) at a price pf 4.75
pence (the “Issue Price”) per Ordinary Share (the “Placing Shares”)
and subscription to raise £171,500 through the issue of 3,610,526 Ordinary
Shares at the Issue Price (the “Subscription Shares”) (together the
“Fundraising”).
 
* The Company believes that its projects are a key part of an emerging modern
gold industry in Ireland which lies along the same gold-rich fault systems as
that found in Newfoundland in Canada.  Conroy Gold, starting from an
abandoned Antimony (Sb) mine, has discovered multiple targets along two
district scale gold trends extending over 90km, and delineated a 517Koz
Indicated & Inferred resource at shallow depth at Clontibret from just 20 per
cent. of the Clontibret target area.
 
* The Clontibret orebody is open at depth and along trend that has analogies
with major projects such as Fosterville (>10m oz Au Australia) and the
Queensway Project (Pre-resource, Canada).
 
* The funds will be used to progress follow up analysis on the recent drilling
programmes which will include structural analysis and other work on
mineralisation controls in Clontibret, Clay Lake and Creenkill, ongoing
baseline environmental studies together with assessment of the scale and
economic potential of the associated antimony mineralisation at Clontibret.
 
* Funds raised will also support the Company’s ongoing work on securing
joint venture partners / strategic investment in addition to general working
capital purposes. 
* Professor Richard Conroy (Chairman) has subscribed for 1,052,632 ordinary
shares in the Fundraising at the Issue Price for a total consideration of
£50,000.
 
* In conjunction with the Fundraising, certain parties have also capitalised
amounts owed to them totalling c. £85,345 through the issue of 1,802,851 new
Ordinary Shares at the Issue Price (the “Fee Shares”).
 
* In addition to management’s experience of the discovery, permitting and
development of the Galmoy Zinc orebodies, the collective experience of the
Board includes direct experience of leading the Alturas Gold Deposit (9m oz
Au) in Chile through exploration and resource establishment through to scoping
study and also being part of teams responsible for the discovery of both the
Curraghinalt gold deposit in Co. Tyrone and three new gold deposits at the
Grey Fox Project in Canada.
 

FUNDRAISING SUMMARY

 

The Issue Price represents a discount of circa 27 per cent. to the closing
mid-market price of 6.5 pence on 8 October 2024, being the last practicable
date prior to this announcement.

 

Each Placing Share, Subscription Share and Fee Share will carry one
non-transferable Warrant. At the time of warrant exercise, if the warrant
holder can prove they hold an amount of Ordinary Shares equal to the number of
Ordinary Shares acquired as part of the Fundraising, the warrant rights will
entitle the warrant holder to subscribe for one new Ordinary Share at a price
of 9.5p for every warrant held. Should the warrant holder not be able to prove
ownership of such an amount of Ordinary Shares then, on exercise, the warrant
rights will only entitle the warrant holder to subscribe for one new Ordinary
Share at the price of 9.5p for every two warrants held (e.g. a half a
warrant).  Payment must be received by the Company within 10 Business Days of
the date the Warrants are exercised.  The warrants will be exercisable for a
period of 12 months from the admission to trading on AIM of the Placing
Shares, Subscription Shares and Fee Shares (“Admission”), creating
7,255,482 warrants (the “Fundraising Warrants”).

 

The Placing Shares, Subscription Shares and Fee Shares will represent
approximately 13.17 per cent. of the enlarged issued share capital on
Admission and have been issued to a combination of mainly new investors and
certain existing shareholders.

 

Mr Philip Hannigan (a substantial shareholder in the Company as defined in the
AIM Rules for Companies) is participating in the Fundraising. Mr Philip
Hannigan is subscribing for 1,000,000 Subscription Shares and, as a
consequence, is expected to hold 10,058,445 Ordinary Shares representing 18.25
per cent. of the enlarged share capital of the Company on Admission.  

 

The Fundraising has been conducted within the Company’s existing share
authorities and is conditional on Admission becoming effective. Accordingly,
the issue of the Placing Shares, Subscription Shares and Fee Shares and the
possible issue of new Ordinary Shares from the exercise of the Fundraising
Warrants will be undertaken pursuant to the Company’s existing share
authorities.

 

DIRECTOR PARTICIPATION IN THE FUNDRAISING

Details of the participation by Professor Richard Conroy in the Fundraising at
the Issue Price and the resultant shareholding immediately following Admission
are as follows:

 

 Name                                 Subscription Shares being subscribed  Value of the subscription at the Issue Price  Ordinary Shares held following completion of the Fundraising  Percentage of enlarged issued share capital  
 Professor Richard Conroy (Chairman)  1,052,632                             £50,000                                       4,246,668                                                     7.71%                                        

 

In addition, Professor Richard Conroy have both been issued with 1,052,632
Fundraising Warrants at a price of 9.5 pence per Ordinary Share exercisable
for a period of 12 months from Admission.

 

ADMISSION, WARRANTS AND TOTAL VOTING RIGHTS

 

An application will be made shortly to the London Stock Exchange for Admission
of the Placing Shares, Subscription Shares and the Fee Shares. It is expected
that Admission will become effective and that dealings in the Placing Shares,
Subscription Shares and Fee Shares on AIM will commence on or around 15
October 2024.

 

The Fundraising Warrants will not be admitted to trading on AIM or any other
stock market and will not be transferable. The issuance of the Fundraising
Warrants is subject to Admission.

 

In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the
Company confirms that on completion of the Fundraising, and following
Admission, the Company’s enlarged issued ordinary share capital will
comprise 55,104,175 Ordinary Shares.

 

The Company does not hold any Ordinary Shares in Treasury. Therefore,
following Admission, the above figure may be used by shareholders in the
Company as the denominator for the calculations to determine if they are
required to notify their interest in, or a change to their interest in the
Company, under the FCA’s Disclosure Guidance and Transparency Rules.

 

Professor Richard Conroy, Chairman of Conroy Gold, commented:

 

“This fundraising comes at an exciting time for the Company. We are at a
very advanced stage in our gold exploration and development project in Ireland
and we now look forward to progressing forward discussions on securing a
strategic investment and/or joint venture partnership to accelerate the
delivery of a mine.”


For further information please contact:

 Conroy Gold and Natural Resources plc Professor Richard Conroy, Chairman  +353-1-479-6180   
 Allenby Capital Limited (Nomad) Nick Athanas / Nick Harriss               +44-20-3328-5656  
 Peterhouse Capital Limited (Broker) Lucy Williams / Duncan Vasey          +44-20-7469-0930  
 Lothbury Financial Services Michael Padley                                +44-20-3290-0707  
 Hall Communications Don Hall                                              +353-1-660-9377   
                                                                                             

 

Visit the website at: www.conroygold.com

 

The below notifications made in accordance with the requirements of the UK
Market Abuse Regulation provide further detail:

 1   Details of the person discharging managerial responsibilities / person closely associated                                                                                                                              
 a)  Name                                                                                               Professor Richard Conroy                                                                                            
 2   Reason for the notification                                                                                                                                                                                            
 a)  Position/status                                                                                    Chairman of the Board                                                                                               
 b)  Initial notification /Amendment                                                                    Initial notification                                                                                                
 3   Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor                                                                                                          
 a)  Name                                                                                               Conroy Gold and Natural Resources plc                                                                               
 b)  LEI                                                                                                635400YIAKIIDS7JKF64                                                                                                
 4   Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted                      
 a)  Description of the financial instrument, type of instrument Identification code                    Ordinary shares of €0.001 each in Conroy Gold and Natural Resources plc Identification code (ISIN): IE00BZ4BTZ13    
 b)  Nature of the transaction                                                                          1. Purchase of Ordinary Shares                                                                                      
                                                                                                          1. Issue of Warrants                                                                                              
 c)  Price(s) and volume(s)                                                                             1. Price: 4.75 pence per share                                                                                      
                                                                                                         Volume: 1,052,632  1. Exercise price: 9.5 pence                                                                    
                                                                                                         Volume: 1,052,632                                                                                                  
 d)  Aggregated information - Aggregated volume - Price                                                 See above.                                                                                                          
 e)  Date of the transaction                                                                            9 October 2024                                                                                                      
 f)  Place of the transaction                                                                           1. London Stock Exchange – AIM                                                                                      
                                                                                                          1. Outside of a trading venue                                                                                     

 

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