REG - GreenRoc Mining PLC - Placing to raise £461k

GreenRoc Strategic MaterialsAnnouncement

22/11/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231122:nRSV3020Ua&default-theme=true

RNS Number : 3020U  GreenRoc Mining PLC  22 November 2023

GreenRoc Mining Plc / EPIC: GROC / Market: AIM / Sector: Mining

 

22 November 2023

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Placing to raise £461k

 

GreenRoc Mining Plc (AIM: GROC), a company focused on the development of
critical mineral projects in Greenland, is pleased to announce that it has
raised gross proceeds of £460,786 by way of a placing of 18,431,452 new
ordinary shares of 0.1 pence each (the "Placing Shares") at a price of 2.5
pence per Placing Share (the "Placing Price") (the "Placing").

 

The net proceeds of the Placing will primarily be used to complete the
feasibility study of a graphite anode processing plant and to undertake
ongoing work towards the completion of Environmental and Social Impact
Assessment studies for the Company's Amitsoq Project in Greenland. The net
proceeds will also support further commercial negotiations with potential
offtake and financial partners, and general working capital requirements.

 

Participants in the Placing include GreenRoc Chief Executive Officer Stefan
Bernstein, Non-executive Chairman George Frangeskides and Independent
Non-executive Director Mark Rachovides, who each subscribed for £5,000 of
shares.

 

GreenRoc's CEO, Stefan Bernstein, commented:

"It is hugely satisfying that we now have the funding in place to complete the
full feasibility study of the graphite anode processing plant. It will provide
us with a comprehensive business case and clear path to building both the
pilot scale and full production plant. With this, and our own stream of
high-quality feedstock from our Amitsoq graphite mine in Greenland, GreenRoc
aims to become one of only a handful of upcoming vertically integrated
graphite anode producers globally and a strategically important graphite anode
supplier to the European electric vehicle battery market.

 

"I am also very pleased that this fundraise will allow us to complete the
remaining parts of the Environmental and Social Impact Assessments which, I am
convinced, will lead to our application for an exploitation permit at Amitsoq
being positively received in 2024.

 

"I would like to thank our group of supportive investors who continue to show
their confidence in what we are building together. We will work hard to
greatly enhance the value of your investments."

 

 

Use of Proceeds

The proceeds of the Placing are primarily being used to complete the
feasibility study on a processing plant to produce active anode material for
electric vehicle batteries using Amitsoq graphite concentrate as feedstock.
The feasibility study is being undertaken in conjunction with specialist
subcontractors Benchmark Mineral Intelligence, ProGraphite, SLR and Decision
Risk Analytics, and is supported by a £250,000 grant from the UK's Advanced
Propulsion Centre (see RNS Oct 9, 2023) towards the full costs of ca.
£410,000. The feasibility study is planned to be concluded in Q2 2024.

 

The Placing will also cover the estimated remaining costs to complete the
Environmental and Social Impact Assessments (EIA and SIA, respectively), which
will be delivered in 2024. A change in Greenlandic law from 1 January 2024
allows for the granting of an exploitation permit prior to the submission of
the final EIA and SIA, subject to the approval of the EIA and SIA by the
Greenlandic Mining Authority. As such, the Company plans to submit its
application for an exploitation permit in 2024.

 

Directors' Dealing

The table below provides details of the purchase of Ordinary Shares by
Directors of the Company under the Placing and their resulting shareholding
following the purchase. The PDMR form is set out at the bottom of this
announcement.

 

 Director              Ordinary Shares in which the Placee is interested prior to the Placing  Number of Placing Shares subscribed for  Value of Placing Shares subscribed for  Ordinary Shares in which the Placee is interested following the Placing  % of Enlarged Share Capital
 Georges Frangeskides  200,001                                                                 200,000                                  £5,000                                  400,001                                                                  0.24%
 Mark Rachovides       80,000                                                                  200,000                                  £5,000                                  280,000                                                                  0.17%
 Stefan Bernstein      1,220,000                                                               200,000                                  £5,000                                  1,420,000                                                                0.86%

 

George Frangeskides', Mark Rachovides' and Stefan Bernstein's subscription for
Placing Shares (the "Subscription") constitutes a related party transaction as
defined by the AIM Rules. The independent directors of the Company (being all
directors of the Company other than George Frangeskides, Mark Rachovides and
Stefan Bernstein) consider, having consulted with Cairn Financial Advisers
LLP, the Company's nominated adviser, that the terms of the Subscription are
fair and reasonable insofar as the Company's shareholders are concerned.

 

Warrants

 

As a commission fee for raising £86,900 of funding, the Company has granted a
total of 208,561 warrants with an exercise price of 2.5 pence to G-Force
Capital Ltd (the "Warrants"). The Warrants are exercisable until 21 November
2025.

 

Share Placing: Admission to Trading on AIM and Total Voting Rights

 

Application will be made for the Placing Shares, which will rank pari passu
with the existing ordinary shares of 0.1 pence each, to be admitted to trading
on AIM ("Admission"). It is expected that Admission will become effective and
that dealings will commence at 8:00 a.m. on or around 27 November2023.

 

Following the issue of the Placing Shares, the total issued share capital of
the Company will consist of 165,114,162 ordinary shares of 0.1 pence each. The
Company does not hold any ordinary shares in Treasury, therefore the total
current voting rights in the Company following Admission will be 165,114,162.
This 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 in their interest in, the share capital of the
Company under the FCA's Disclosure Guidance and Transparency Rules.

 

Market Abuse Regulation (MAR) Disclosure

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.

**ENDS**

 

 

 

 

 

For further information, please contact:

 GreenRoc Mining plc                                                           +44 20 3950 0724

 Stefan Bernstein, CEO

 Cairn Financial Advisers LLP (Nomad)                                          +44 20 7213 0880

 James Caithie / Sandy Jamieson / Louise O'Driscoll

 SP Angel (Broker)                                                             +44 20 3470 0500

 Ewan Leggat, Charlie Bouverat

 St Brides Partners Ltd (Financial PR & IR) Susie Geliher / Paul Dulieu /      +44 20 7236 1177
 Isabelle Morris

 

About GreenRoc

GreenRoc Mining plc is an AIM-quoted company which is developing mining
projects in Greenland in critical, high-demand and high-value minerals.

 

Led by a group of highly experienced mining industry professionals, GreenRoc
has a portfolio of 100% owned projects all of which have defined Resources:

·   Amitsoq Graphite Project, one of the highest-grade graphite deposits in
the world with a combined Measured, Indicated and Inferred JORC Resource of
23.05 million tonnes (Mt) at an average grade of 20.41% graphite, giving a
total graphite content of 4.71 Mt;

·     Thule Black Sands Ilmenite Project ('TBS'), which has an initial
Mineral Resource of 19Mt at 43.6% Total Heavy Minerals with an in-situ
ilmenite grade of 8.9%; and

·     Melville Bay Iron Project, which has a Mineral Resource Estimate of
67Mt at 31.4% iron and has been proven to be processable to a high-grade, 70%
concentrate with low impurities.

About Amitsoq

 

Amitsoq is located in the Nanortalik region of southern Greenland and has been
confirmed as one of the highest-grade flake graphite projects in the world.
GreenRoc is focused on fast-tracking the development of Amitsoq into a
producing mine in the shortest possible timeframe to meet critical demand from
Electric Vehicle ('EV') manufacturers in Europe and North America for new,
high grade and conflict-free sources of graphite.

 

Key points about Amitsoq:

·     Greenroc Mining plc holds the Amitsoq exclusive exploration licence
MEL2013_06 of a total of 72.52km2 in the South of Greenland.

·     Amitsoq has a total inferred, indicated and measured JORC Resource of
23.05 million tonnes (Mt) at an average grade of 20.41% Graphitic Carbon
("C(g)"), giving a total graphite content of 4.71 Mt.

·     Results of the Preliminary Economic Assessment were released on 31
October 2023 stating a post-tax NPV8 of US$179M at an IRR of 26.7%. Capex
estimated at US$131M including a 25% contingency.

·   Several samples have been extracted for the purpose of testing the
quality of the Amitsoq graphite.

·   Independent micronisation and spheronisation test work has proven that
Amitsoq graphite can be easily upgraded to high-grade anode-quality graphite,
otherwise known as high purity spherical graphite or cSPG, a key raw material
in the manufacturing of EVs.

·    In GreenRoc's test work programmes, Amitsoq spheronised graphite has
achieved higher than 99.95% purity with relatively little energy input and
processing and using the milder alkaline purification method compared to the
industry standard hydrofluoric acid, boding well for future production costs
and sustainability commitments.

·      Significant further upside exists at Amitsoq as the Amitsoq
Island Deposit is open in at least two directions with potential for
considerable further expansion via the similarly high-grade Kalaaq Mainland
Deposit as well as a series of other high-grade targets on GreenRoc's licence
package.

·  The deposit was in small-scale production about 100 years ago, and there
remains considerable underground mine development in place from that time,
which will be of considerable benefit to GreenRoc in the mine construction
phase.

·    Following a detailed evaluation process, the European Raw Materials
Alliance has expressed its support of GreenRoc and its Amitsoq graphite
project, stating that "GreenRoc's graphite resource is of global importance
and, together with the Company's strategy, will enable the European Union to
achieve a certain level of independence for the electrical vehicle supply
chain. ERMA has approved the Amitsoq Graphite project and will engage to
support its development and financing to produce these critical raw materials
for the benefit of the European Union goals." (see RNS dated 8 February 2023).

·   On 9 October 2023, GreenRoc was awarded a grant of approximately
£250,000 by the Automotive Transformation Fund in the UK to part-finance a
feasibility study into the establishment of a graphite spheronisation
processing plant in the UK to produce active anode material from graphite
concentrate delivered from GreenRoc's Amitsoq Graphite Project.

 

PDMR Disclosures

 

 Notification of a Transaction pursuant to Article 19(1) of Regulation (EU) No.
 596/2014
 1     Details of the person discharging managerial responsibilities/person closely
       associated
 a.    Name                                                           Mr Stefan Bernstein
 2     Reason for notification                                         

                                                                       

                                                                       
 a.    Position/Status                                                Director
 b.    Initial notification/                                          Initial notification

       Amendment
 3     Details of the issuer, emission allowance market participant, auction
       platform, auctioneer or auction monitor
 a.    Name                                                           GreenRoc Mining Plc
 b.    LEI

                                                                       213800OAVF2KQAD11380

                                                                       
 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

                                                                      GB00BLD3C518

 b.    Nature of the transaction                                      Subscription for Ordinary shares of £0.001 each
 c.    Price(s) and volume(s)
                                                                                  Price(s)    Volume(s)
       2.50 pence                                                                 200,000

 d.    Aggregated information

                                                                      N/A

 e.    Date of the transaction                                        21 November 2023
 f.    Place of the transaction                                       London, UK

 

 

 Notification of a Transaction pursuant to Article 19(1) of Regulation (EU) No.
 596/2014
 1     Details of the person discharging managerial responsibilities/person closely
       associated
 a.    Name                                                           Mr George Frangeskides
 2     Reason for notification                                         

                                                                       

                                                                       
 a.    Position/Status                                                Director
 b.    Initial notification/                                          Initial notification

       Amendment
 3     Details of the issuer, emission allowance market participant, auction
       platform, auctioneer or auction monitor
 a.    Name                                                           GreenRoc Mining Plc
 b.    LEI

                                                                       213800OAVF2KQAD11380

                                                                       
 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

                                                                      GB00BLD3C518

 b.    Nature of the transaction                                      Subscription for Ordinary shares of £0.001 each
 c.    Price(s) and volume(s)
                                                                                  Price(s)    Volume(s)
       2.50 pence                                                                 200,000

 d.    Aggregated information

                                                                      N/A

 e.    Date of the transaction                                        21 November 2023
 f.    Place of the transaction                                       London, UK

 

 

 

 Notification of a Transaction pursuant to Article 19(1) of Regulation (EU) No.
 596/2014
 1     Details of the person discharging managerial responsibilities/person closely
       associated
 a.    Name                                                           Mr Mark Rachovides
 2     Reason for notification                                         

                                                                       

                                                                       
 a.    Position/Status                                                Director
 b.    Initial notification/                                          Initial notification

       Amendment
 3     Details of the issuer, emission allowance market participant, auction
       platform, auctioneer or auction monitor
 a.    Name                                                           GreenRoc Mining Plc
 b.    LEI

                                                                       213800OAVF2KQAD11380

                                                                       
 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

                                                                      GB00BLD3C518

 b.    Nature of the transaction                                      Subscription for Ordinary shares of £0.001 each
 c.    Price(s) and volume(s)
                                                                                  Price(s)    Volume(s)
       2.50 pence                                                                 200,000

 d.    Aggregated information

                                                                      N/A

 e.    Date of the transaction                                        21 November 2023
 f.    Place of the transaction                                       London, UK

 

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  DSHNKBBQABDKFDB