REG - Great Southrn.Copper - GSC Raises £905,000 to Advance Exploration

Great Southern CopperAnnouncement

23/11/2023 11:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231123:nRSW4943Ua&default-theme=true

RNS Number : 4943U  Great Southern Copper PLC  23 November 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

23 November 2023

 

Great Southern Copper plc

("GSC" or the "Company")

 

 

GSC Secures £905,000 Funding to Advance Exploration in Chile

 

 

Great Southern Copper plc (LSE: GSCU), the company focused on copper-gold and
lithium exploration in Chile, is pleased to announce a conditional placing and
subscription ("Placing and Subscription" or "Fundraising") to raise £905,000
before expenses. The Fundraising was supported by existing, institutional and
new investors, together with the Company's Directors and key senior geologists
participating in the Placing and Subscription.

 

Highlights

·    Gross amount of £905,000 raised through the Placing and Subscription
to raise through the issue of 40,222,206 new ordinary shares of 1p each at
£0.0225 per share ("Placing and Subscription Shares"). The Placing and
Subscription Shares represent 11.7% of the Company's enlarged issued share
capital

·    The proceeds will primarily be used to fund:

o  Further drilling at high grade Cu-Au targets on the Especularita project

o  Detailed mapping and surface sampling of the Colorada lithocap - also at
Especularita to define targets for later drilling

o  Reconnaissance work and target definition at the San Lorenzo Project

o  Commencement of exploration at the recently acquired Monti Lithium Project
in the Salar de Atacama district

·    Each Placing and Subscription Share will have one attached warrant
exercisable at 4.5p for a period of 24 months from the date of admission to
listing and to trading of the Placing and Subscription Shares

·    The Placing and Subscription and the warrants are conditional on the
approval by the Financial Conduct Authority ("FCA") and publication of a
prospectus by the Company ("Prospectus") which is expected shortly

·    As part of the Placing and Subscription, the Company's Directors and
senior management intend to subscribe for 4,222,222 Placing and Subscription
Shares

 

Rationale for Fundraising and Use of Proceeds

Great Southern Copper has continued to make significant progress with
exploration at its projects in Chile this year. Exploration work at
Especularita to date is defining a pipeline of drill-ready prospects which are
interpreted to represent high-grade copper-gold targets related to both
porphyry-epithermal-skarn and IRGS type mineral systems. Scout RC drilling is
expected to commence shortly to test both the Teresita (IRGS quartz-carbonate
vein-breccia system) and Abundante (breccia-pipe system) prospects using
proceeds from the capital raised in May this year.

 

The Company will use the proceeds of the Placing and Subscription to advance
further scout RC drilling of the Especularita prospect pipeline as well as
conduct detailed work on the Colorada lithocap designed to define prospects
for later drill-testing. In addition, the company will advance its exploration
and target definition work for large scale porphyry and IOCG type deposits at
the San Lorenzo Project.

 

Recently, the Company acquired the Monti Lithium Project in the Salar de
Atacama district in Chile and it will use part of the proceeds to commence
exploration in this region.

 

Sam Garrett, Chief Executive Officer of Great Southern Copper, said: "We are
pleased with the completion of the Placing and Subscription and are grateful
to our new and existing investors. Continued strong involvement by our
existing shareholders, Board and Management reflects the confidence in our
projects and in the Company's exploration team.

"The Placing and Subscription, together with cash in the business, leaves the
Company capitalised to continue drilling our pipeline of high-grade
copper-gold prospects at the Especularita project and continue with wider
regional exploration efforts at both Especularita and San Lorenzo. We are also
excited to commence exploration at our newly acquired Monti Lithium Project in
the Salar de Atacama district.

 

"We are very excited by the upcoming work programmes targeting a number of
prospects and we look forward to updating the market on our progress."

 

Admission and Total Voting Rights

Application will be made for the 40,222,206 Placing and Subscription Shares,
which will rank pari passu in all respects with the existing ordinary shares
in the Company, to be admitted to listing on the standard listing segment of
the Official List of the FCA and to trading on the London Stock Exchange plc's
("London Stock Exchange") main market for listed securities ("Main Market"),
which is expected to occur at 8.00 a.m. on or around 11 Dec 2023.

 

In addition to the Placing and Subscription Shares, and also conditional on
the approval by the FCA and publication of Prospectus, application will be
made for an additional 47,880,596 new ordinary shares to be admitted at the
same time to listing on the standard listing segment of Official List of the
FCA and to trading on the London Stock Exchange's Main Market, representing:

 

·    4,436,834 new ordinary shares at £0.012 per share (in the case of
Sam Garrett) and at £0.0139, £0.0145 and £0.0227 (in the case of Charles
Bond, Chairman, being quarterly VWAPs) and at £0.227 (in the case of Paul
Williams, former CFO), pursuant to an arrangement between the Company and
these individuals pursuant to which some or all of their respective salary has
been sacrificed and accrued;

 

·    41,749,995 new ordinary shares at £0.012 per share, arising on
conversion of a convertible loan pursuant to the agreement entered into
between the Company and its major shareholder Foreign Dimensions Pty Ltd dated
and announced on 15 May 2023; and

 

·    1,693,767 new ordinary shares at £0.012 per share as part payment to
the vendors of the San Lorenzo project under an option agreement with the
Company dated 8 July 2023,

 

(together the "Additional Shares"), all of which will rank pari passu in all
respects with the existing ordinary shares in the Company and further details
of which will be set out in the prospectus.

 

Following Admission of the Placing and Subscription Shares and the Additional
Shares, the total number of ordinary shares and voting rights in the Company
will be 343,189,211. The above figure may be used by shareholders in the
Company as the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to their
interest in, the share capital of the Company under the FCA's Disclosure and
Transparency Rules.

 

 

Enquiries:

 

 Great Southern Copper plc
 Sam Garrett, Chief Executive Officer      +44 (0)20 4582 3500

 SI Capital Limited
 Nick Emerson                              +44 (0)14 8341 3500

 Gracechurch Group
 Harry Chathli, Alexis Gore, Henry Gamble  +44 (0)20 4582 3500

 

 

Notes for Editors:

 

About Great Southern Copper

 

Great Southern Copper PLC is a UK-listed mineral exploration company focused
on the discovery of copper-gold and lithium deposits in Chile. The Company has
the option to acquire rights to 100% of two projects in the under-explored
coastal belt of Chile that are prospective for large scale copper-gold
deposits. In addition, the Company has the option to acquire rights to 100% of
a lithium project located in the Salar de Atacama district of Chile. Chile is
a globally significant mining jurisdiction being the world's largest copper
producer and the second-largest producer of lithium.

 

The two, early-stage Cu-Au projects comprise the San Lorenzo and Especularita
Projects, both located in the coastal metallogenic belt of Chile which hosts
significant copper mines and deposits, including Teck's Carmen de Andacollo
copper mine, and boasts excellent access to infrastructure such as roads,
power and ports. Significant historical small-scale and artisanal workings for
both copper and gold are readily evident in both exploration project areas.

 

The Company's Monti Lithium project is strategically located in the pre-Andean
region of Salar de Atacama which is Chile's premier lithium-producing region
with well-established lithium mining operations and infrastructure.

 

Great Southern Copper is strategically positioned to support the global market
for copper and lithium - both critical battery metals in the clean energy
transition around the world. The Company is actively engaged in exploration
and evaluation work programmes targeting both large tonnage, low to medium
grade Cu-Au and Li deposits as well as high-grade Cu-Au deposits.

 

Further information on the Company is available on the Company's website:
https://gscplc.com (https://gscplc.com)

 

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  IOEFEUFFDEDSESF