REG - Cora Gold Limited - Fundraising: Update and Closing

Cora GoldAnnouncement

24/02/2023 07:00

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RNS Number : 9200Q  Cora Gold Limited  24 February 2023

 

 

Cora Gold Limited / EPIC: CORA.L / Market: AIM / Sector: Mining

 

24 February 2023

 

Cora Gold Limited

 

('Cora' or 'the Company')

 

Fundraising: Update and Closing

 

Cora Gold Limited, the West African focused gold company, is pleased to
announce that, further to the announcement of 06 February 2023, it has
conditionally raised US$19.843 million, comprising both equity (the 'Equity
Financing') and convertible loan notes (the 'Convertible Financing') (together
the 'Fundraising'), subject only to the passing of the resolutions to be
proposed at a General Meeting of the shareholders of the Company on 28
February 2023.

 

The funds raised will be primarily used to commence development of the
Company's flagship Sanankoro Gold Project (the 'Project') in southern Mali
following the reported Optimised Project Economics (announcement dated 21
November 2022), which highlighted strong economic fundamentals.

 

Binding commitments have been received for aggregate investments of
US$19,843,169.26 pursuant to the Fundraising comprising commitments to
subscribe for:

● 80,660,559 ordinary shares of no par value in the Company ('Ordinary
Shares') at a price of US$0.0487 per share for total gross proceeds of
US$3,928,169.26 in respect of the Equity Financing; and

● convertible loan notes ('CLN') convertible into Ordinary Shares for a
total of US$15,915,000 in respect of the Convertible Financing,

(together the 'Binding Commitments').

 

Bert Monro, Chief Executive Officer of Cora, commented, "I am very pleased
with the strong support received for this fundraising from many of our
existing shareholders as well as new investors. Over the coming months we look
forward to providing progress updates on our flagship Sanankoro Gold Project."

 

Admission and Total Voting Rights

 

The Company has conditionally raised through the Equity Financing a total of
US$3,928,169.26, before expenses, through the proposed issue of 80,660,559 new
Ordinary Shares (the 'New Shares') to certain existing shareholders and new
investors.

 

The Fundraising is subject to Admission of the New Shares to trading on the
AIM Market of the London Stock Exchange ('Admission'). Application for
Admission will be made after the General Meeting of the shareholders of the
Company on 28 February 2023. It is expected that Admission will become
effective and dealing in the New Shares will commence on or around 08 March
2023. The New Shares will rank pari passu with the existing Ordinary Shares.

 

Following Admission, the share capital of the Company will be comprised of
370,217,718 Ordinary Shares. The above figure of 370,217,718 may be used by
shareholders as the denominator for the calculations by which they will
determine if they are required to notify their interest in Cora under the
Financial Conduct Authority's Disclosure and Transparency Rules.

 

Revised shareholdings following Admission

 

On Admission, the revised shareholdings of the following directors, and
current and new substantial shareholders will be:

 

                                                                              Current shareholding  New Shares  Shareholding on Admission  Percentage of enlarged issued share capital
 Brookstone Business Inc                                                      82,796,025            20,533,881  103,329,906                27.91%
 Lord Farmer                                                                  42,537,183            26,694,045  69,231,228                 18.70%
 Paul Quirk                                                                   13,674,689 (a)        -           13,674,689 (a)             3.69%

 Non-Executive Director
 First Island Trust Company Ltd as Trustee of The Marlborough Trust (b)       -                     12,320,328  12,320,328                 3.33%
 Robert Monro                                                                 2,028,896             206,000     2,234,896                  0.60%

 Chief Executive Officer & Director
 Edward Bowie                                                                 525,510               100,000     625,510                    0.17%

 Non-Executive Director (Independent) & Chair of the Board of Directors
 Andrew Chubb                                                                 539,526               -           539,526                    0.15%

 Non-Executive Director (Independent)

a    held personally and through Key Ventures Holding Ltd which is wholly
owned and controlled by First Island Trust Company Ltd as Trustee of The
Sunnega Trust, being a discretionary trust of which Paul Quirk is a potential
beneficiary.

b    The Marlborough Trust is a discretionary trust with a broad class of
potential beneficiaries.

 

Market Abuse Regulation ('MAR') Disclosure

 

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) No 596/2014 ('MAR'), which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, until the release of this announcement.

 

* * ENDS * *

 

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

 

 Bert Monro           Cora Gold Limited            info@coragold.com (mailto:info@coragold.com)

 Craig Banfield
 Christopher Raggett  finnCap Ltd                  +44 (0)20 7220 0500

 Charlie Beeson       (Nomad & Joint Broker)
 Andy Thacker         Turner Pope Investments      +44 (0)20 3657 0050

 James Pope           (Joint Broker)
 Susie Geliher        St Brides Partners           pr@coragold.com (mailto:pr@coragold.com)

 Charlotte Page       (Financial PR)

 Isabelle Morris

 

Notes

 

Cora is a West African gold developer with three principal de-risked project
areas within two known gold belts in Mali and Senegal covering c.900 sq km.
Led by a team with a proven track record in making multi-million ounce gold
discoveries that have been developed into operating mines, its primary focus
is on developing the Sanankoro Gold Project in the Yanfolila Gold Belt,
southern Mali, into an open pit oxide mine. Based on a gold price of
US$1,750/oz and a Maiden Probable Reserve of 422 koz at 1.3 g/t Au the project
has strong economic fundamentals, including 52% IRR, US$234 million Free Cash
Flow over life of mine and all-in sustaining costs of US$997/oz.

 

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