REG - GreenRoc Mining PLC - Placing to raise £470k

GreenRoc Strategic MaterialsAnnouncement

02/08/2023 07:00

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RNS Number : 9827H  GreenRoc Mining PLC  02 August 2023

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

 

2 August 2023

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Placing to raise £470k

 

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 £470,000 by way of a placing of 12,368,422 new
ordinary shares of 0.1 pence each (the "Placing Shares") at a price of 3.8
pence per Placing Share (the "Placing Price") (the "Placing").

 

The net proceeds of the Placing will be put towards finalisation of the
preliminary economic assessment (PEA) of the Amitsoq project, laboratory
preparation of different graphite product samples as requested by a potential
offtaking company, ongoing work including field sampling in relation to the
Environmental and Social Impact Assessment studies and test processing of
Amitsoq graphite ore by new flotation cells developed by a consortium led by
Danish multinational technology company FLSmidth & Co A/S
("FLSmidth").  The net proceeds will also support further commercial
negotiations with potential offtake and financial partners, and general
working capital requirements.

 

GreenRoc's CEO, Stefan Bernstein, commented:

"I am very pleased about our successful raise of £470,000, which will allow
us to finalise the PEA for publication in September, and further progress the
work programme and planning for the development of the Amitsoq graphite
deposit towards production.

 

"We are grateful for the participation in the placing of Alba Mineral
Resources Plc and other existing shareholders of GreenRoc, which we take as a
confirmation of the strength of their continuing belief in the fundamentals of
GreenRoc and our world-class Amitsoq project.

 

"The raise was undertaken at 3.8p which is our current share price and I take
that as yet another sign of strong support and belief in our Amitsoq project.

 

"I am also excited to supply a 200kg sample of Amitsoq graphite ore for test
runs using FLSmidth's new REFLUX(TM) technologies. These REFLUX(TM) cells are
newly developed and have shown to vastly improve recovery rates while reducing
ore processing time, power and water consumption, capital and running costs
and space needs for several different ore types. Positive results from this
test will be very helpful in delineating the right processing technique at
Amitsoq."

 

Alba Mineral Resources Plc holding

 

Alba Mineral Resources Plc ("Alba") has subscribed for 3,026,316  Placing
Shares as part of the Placing. Following the Placing, Alba will hold
63,026,317  shares, equivalent to 42.97% of the Company's issued capital.

 

Related Party Transaction

 

Alba'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 and Mark Austin) 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 £200,000 of funding, the Company has granted
a total of 315,789 warrants with an exercise price of 3.8 pence to G-Force
Capital Ltd (the "Warrants"). The Warrants are exercisable until 7 August
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 7 August 2023.

 

Following the issue of the Placing Shares, the total issued share capital of
the Company will consist of 146,682,710  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 146,682,710.
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's primary focus at Amitsoq is on developing the Amitsoq
Island Deposit, which 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.

·      Deposits with compliant resources above 20% contained graphite
grade are scarce, with the average global grade of graphite resources being
just 8.45% (according to S&P Global).

·      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 HPSG, 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 to 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).

 

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