REG - East Star Resources - Placing to Raise £540,000 to Advance VMS Licences

East Star ResourcesAnnouncement

02/10/2023 07:30

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RNS Number : 3289O  East Star Resources PLC  02 October 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET
ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK
MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

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REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

 

2 October 2023

East Star Resources Plc

("East Star" or the "Company")

 

Placing to Raise £540,000 to Advance Rudny Altai VMS Licences

&

Appointment of Broker

 

East Star Resources Plc (LSE:EST), which is defining mineral resources in
Kazakhstan for the energy revolution, announces it has raised gross proceeds
of £540,000 by way of a placing of 36,400,000 new ordinary shares at 1.5
pence per share (the "Placing") including a one-for-one warrant at an exercise
price of 3p. Alongside other existing and new investors, the Company's Chief
Executive Officer and its largest shareholder have both participated in the
Placing.

 

Use of Proceeds

 

The proceeds of the Placing will be applied to:

 

·    Modelling the Verkhuba Copper Deposit drill results expected in Q4
2023 to plan the follow up drill programme

·    Additional drilling on the Verkhuba Copper Deposit to advance it
towards a JORC-compliant resource

·    Drilling additional targets within the Rudny Altai belt licences
which have advanced significantly over the recent field season

·    Processing and analysing the regional mapping currently underway to
provide a better assessment of additional targets along this significant and
underexplored mineral belt

 

Alex Walker, East Star CEO, commented:

 

"In less than two years, East Star's prospects have evolved from greenfield
exploration to brownfield drilling of strategic and critical metals. The funds
raised today from new and existing investors will go towards advancing a
potentially game-changing copper deposit at Verkhuba as well as preparing a
number of other targets for drill-ready status such as Talovskoye, where a
rock chip sample from 2022 returned >17% Cu and >10% Pb. I am grateful
to our investors for their support in joining me and our major shareholder in
funding East Star's next phase, focused on advancement of the Rudny Altai
projects."

 

Director and Major Shareholder Participation

Alex Walker, a director of the Company, has subscribed for 1,254,679 Placing
Shares ("Director's Subscription"), increasing his shareholding in the Company
to 21,279,201 ordinary shares.

In the case of the Director's Subscription, the remaining Directors are deemed
to be independent and consider the Director's Subscription to be fair and
reasonable insofar as the Company's shareholders are concerned. Further
information regarding the Director's Subscription follows in the Appendix
below.

The subscription was also supported by Ilwella Pty Ltd which maintained its
16.7% shareholding by participating pro-rata in the Placing.

 

Admission of Shares and Total Voting Rights and Warrants

An application has been made for the 36,400,000 new ordinary shares (the
"Placing Shares"), which will rank pari passu with the existing ordinary
shares in issue, to be admitted to trading on the Official List of the UK
Listing Authority and to trading on the Main Market of London Stock Exchange
plc ("Admission"). It is anticipated that Admission will become effective and
that dealings in the ordinary shares will commence at 8.00 a.m. on 16 October
2023.

Following Admission, the Company will have 218,650,164 ordinary shares in
issue. The Company does not hold shares in treasury, therefore the figure of
218,650,164 should be used by shareholders for the calculations by which they
will determine if they are required to notify their interest in, or a change
of their interest in, the share capital of the Company under the FCA's
Disclosure and Transparency Rules.

The Placing includes the allocation of a one-for-one warrant to subscribe for
one new ordinary share at an exercise price of 3p, with a term of 24 months
from the date of Admission.

 

Appointment of Broker

East Star is pleased to announce the appointment of SI Capital as Broker to
the Company with immediate effect.

 

For further information visit the Company's website at www.eaststarplc.com
(http://www.eaststarplc.com) , or contact:

 

East Star Resources Plc

Alex Walker, Chief Executive Officer

Tel: +44 (0)20 7390 0234 (via Vigo Consulting)

 

SI Capital (Corporate Broker)

Nick Emerson

Tel: +44 (0)1483 413 500

 

Peterhouse Capital Limited (Corporate Broker)

Duncan Vasey / Lucy Williams

Tel: +44 (0) 20 7469 0930

 

Vigo Consulting (Investor Relations)

Ben Simons / Peter Jacob

Tel: +44 (0)20 7390 0234

 

About East Star Resources Plc

 

East Star Resources is focused on the discovery and development of strategic
minerals required for the energy revolution. With an initial nine licences
covering 1,321.5 km² in three mineral rich districts of Kazakhstan, East
Star is undertaking an intensive exploration programme, applying modern
geophysics to discover minerals in levels that were not previously explored.
The Company also intends to further expand its licence portfolio
in Kazakhstan. East Star's management are based permanently on the ground,
supported by local expertise, and joint ventures with the state mining
company.

 

Follow us on social media:

LinkedIn: https://www.linkedin.com/company/east-star-resources/
(https://www.linkedin.com/company/east-star-resources/)

 

Twitter: https://twitter.com/EastStar_PLC (https://twitter.com/EastStar_PLC)

 

Subscribe to our email alert service to be notified whenever East Star
releases news:

www.eaststarplc.com/newsalerts (http://www.eaststarplc.com/newsalerts)

 

The person who arranged for the release of this announcement was Alex Walker,
CEO of the Company.

 

Appendix

 

Director's Subscription - Additional Information

 

 1   Details of the person discharging managerial responsibilities/person closely
     associated
 a)  Name                                                         Alexander Casey Walker
 2   Reason for the notification
 a)  Position/status                                              Chief Executive Officer
 b)  Initial notification/Amendment                               Initial notification
 3   Details of the issuer, emission allowance market participant, auction
     platform, auctioneer or auction monitor
 a)  Name                                                         East Star Resources PLC
 b)  LEI                                                          2138001Y6SMQC8DX2B40
 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  Ordinary shares of 1 pence per share par value

     Identification code

                                                                  GB00BN92HZ16
 b)  Nature of the transaction                                    Issue of shares
 c)  Price(s) and volume(s)                                       Price(s)   Volume(s)
                                                                  1.5 pence  1,254,679

 d)  Aggregated information

- Aggregated volume

     - Price                                                      As above

                                                                  As above
 e)  Date of the transaction                                      2 October 2023
 f)  Place of the transaction                                     Outside a trading venue

 

 

 

d)

Aggregated information

 -  Aggregated volume
 -  Price

 

As above

As above

e)

Date of the transaction

2 October 2023

f)

Place of the transaction

Outside a trading venue

 

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