REG - GCM Resources PLC - Subscription to raise £500,000

GCM ResourcesAnnouncement

26/01/2024 10:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240126:nRSZ0759Ba&default-theme=true

RNS Number : 0759B  GCM Resources PLC  26 January 2024

26 January 2024

 

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM)

 

Subscription to raise £500,000

 

GCM Resources plc, an AIM quoted mining and energy company, announces that it
has successfully raised gross proceeds of £0.5m by means of a direct
subscription (the "Subscription") of new Ordinary Shares (the "Subscription
Shares") at a price of 1.65 pence per share (the "Subscription Price"). The
Company will need to carry out an additional fundraise before the end of May
2024 to fund its working capital for the next 12 months.

 

The Subscription Price represents a discount of 37.7 per cent to the Closing
Price of 2.65 pence per Ordinary Share on 25 January 2024, being the latest
practicable business day prior to the publication of this announcement.

 

The net proceeds of the Subscription will provide the Company with a source of
general working capital to progress its existing projects.

 

Subscription summary

 

•        The Subscription has raised £500,000 (before expenses)
through the issue of 30,303,040 Subscription Shares at the Subscription Price.

•        The Subscription Shares will represent 12.7 per cent. of the
Enlarged Issued Share Capital.

•        The net proceeds of the Subscription will be used to provide
the Company with a source of general working capital to progress its existing
projects.

 

The Subscription

 

The Company will issue 30,303,040 Subscription Shares, to raise gross proceeds
of £500,000 to participants in the Subscription. The Subscription Shares will
be admitted ("Admission") to trading on the AIM market ("AIM") of London Stock
Exchange plc ("LSE") on or around 2 February 2024.

 

Subscription Information

 

The Subscription is conditional, inter alia, on Admission of the Subscription
Shares to trading on AIM and the lifting of the suspension of trading in the
Company's shares. The Subscription and issue of warrants (as detailed below)
has been conducted utilising the Company's existing share authorities.

 

The Subscription Shares will be issued, credited as fully paid, and will rank
pari passu with the existing Ordinary Shares in issue in the capital of the
Company, including the right to receive all dividends and other distributions
(if any) declared, made or paid on or in respect of such shares after the date
of their issue.

 

Application has been made to the London Stock Exchange for, in aggregate,
30,303,040 new Ordinary Shares to be admitted to AIM. It is expected that
Admission will become effective on 2 February 2024. Following Admission, the
Company's enlarged issued share capital will comprise 237,825,076 Ordinary
Shares with voting rights in the Company. As the Company holds no shares in
treasury, this is the total number of the voting rights in the Company which
may be used by shareholders as the denominator for the calculations by which
they will determine if they are required to notify their interest, or a change
in the interest, in the share capital of the Company under Chapter 5 of the
FCA's Disclosure Guidance and Transparency Rules as reflected in the Company's
articles of incorporation.

 

Issue of warrants

 

In addition, Allenby Capital Limited, who are acting as agent in respect of
the Subscription, will be issued with 303,030 warrants to subscribe for new
Ordinary Share at a price of 1.65 pence per Ordinary Share exercisable for a
period of 3 years from Admission.

 

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

 

 

Suspension and annual report

 

As announced on 28 December 2023, the Company's shares have been suspended
from trading on AIM pending completion of an ongoing funding event and release
of the Company's financial statements for the year end 30 June 2023. It is
anticipated that the Company's delayed financial statements will be announced
on 29 January 2024.

 

Further updates on the lifting of the suspension of trading in the Company's
shares will be given in due course.

 

 

This announcement contains inside information as defined in Article 7 of the
EU Market Abuse Regulation No 596/2014 and has been announced in accordance
with the Company's obligations under Article 17 of that Regulation.

 

 

For further information:

 

 GCM Resources plc          WH Ireland Ltd         Allenby Capital Ltd

 Keith Fulton               James Joyce            Kelly Gardiner

 Finance Director           James Bavister         Nick Athanas / Lauren Wright

 +44 (0) 20 7290 1630       Andrew De Andrade      +44 (0) 20 3328 5656

                            +44 (0) 20 7220 1666
 GCM Resources plc
 Tel: +44 (0) 20 7290 1630
 info@gcmplc.com;

 

 

 

About GCM Resources

GCM Resources plc (LON:GCM), the AIM listed mining and energy company, has
identified a high-quality coal resource of 572 million tonnes (JORC 2004
compliant) at the Phulbari Coal and Power Project (the "Project") in
north-west Bangladesh.

 

Utilising the latest highly energy efficient power generating technology the
Phulbari coal mine can support some 6,600MW. GCM requires approval from the
Government of Bangladesh in order to develop the Project. The Company has a
strategy of linking the Company's mine proposal to supplying coal to the
Government of Bangladesh's existing and in the pipeline coal-fired power
plants and / or power plants developed development partners. Together with
credible, internationally recognised strategic development partners, GCM aims
to deliver a practical power solution to provide the cheapest coal-fired
electricity in the country, in a manner amenable to the Government of
Bangladesh.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ROIMZGZMGVRGDZM