REG - Hamak Gold Limited - Investment Agreement

Hamak GoldAnnouncement

17/07/2024 07:00

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RNS Number : 7325W  Hamak Gold Limited  17 July 2024

 

 

 

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17 July 2024

Hamak Gold Limited

("Hamak Gold" or the "Company")

Investment Agreement

Hamak Gold Limited (LSE: HAMA) is pleased to announce that it has entered into
an investment, whereby the Company will receive 2,424,242,424 ordinary shares
in Vela Technologies plc (AIM: VELA) ("Vela") in return for the issue of
£300,000 of Hamak unsecured convertible loan notes of £1 each ("CLNs").

Summary Terms of CLN

·    Redeemable 24 months after issue ("Maturity Date") with interest
accruing at 10% per annum, compounded annually

·    Vela is subject to a six-month lock-in period from the date of the
Agreement during which Vela is not entitled to submit a conversion notice in
relation to the Loan Notes.

·    A conversion notice can be issued by Vela on the CLNs any time
between six months after issue and the Maturity Date.

·    The conversion price will be the lower of £0.03 or a 25% discount to
the five day VWAP immediately prior to conversion. Any accrued interest will
be payable in cash on the conversion date

The Company is currently unable to admit new shares to trading on the standard
segment of the Main Market without the publication of an FCA approved
prospectus and therefore the Company will monitor, in conjunction with Vela,
the ability for Vela to convert the CLNs into ordinary shares of the Company.

In addition to the Agreement, Hamak has undertaken to redeem £75,000 of the
Loan Notes by making cash payments to Vela at a minimum rate of £10,000 per
month, or such higher amount to a maximum of £25,000 per month, with the
first payment due to be made on 31 July 2024.

Nimba Project Update

The Company recently announced that it has commenced the next phase of
exploration work at its high-grade Ziatoyah gold discovery in the Nimba permit
in northern Liberia. Field mapping across a defined area of the 5.7km x 1km
strong gold in soil anomaly, where numerous peak values of 1,000ppb (parts per
billion) are recorded.  Mapping has revealed several outcrops of geology
similar to that which yielded the near-surface high-grade drill intersection
of 20m at 7g/t Au, within the soil anomaly envelope.  Detailed geological and
structural mapping is ongoing and surface trenching over some targets will
commence in the near future, as a pre-cursor to the next planned drilling
programme.

Karl Smithson, Executive Director of Hamak Gold commented:

"This Investment Agreement allows Hamak to enter into a transaction with
potential uplift in value for the Company's shareholders. Vela has a current
market capitalisation of £1.74 million, whereas its total assets as at 31
March 2024 were £5.54 million, as reported in its quarterly investment update
on 10 June 2024. We are therefore pleased to enter into the CLN agreement,
which will strengthen Hamak's balance sheet and provide further funding in the
short term to progress our promising Nimba exploration programme."

For further information you are invited to view the Company's website at
www.hamakgold.com or please contact:

 Hamak Gold Limited

 Amara Kamara                                   +231 (0) 77 005 0005

 Karl Smithson                                  +44 (0) 77 837 07971
 Peterhouse Capital Limited (Corporate Broker)  +44 (0) 20 7469 0930

 Yellow Jersey PR

 Annabelle Wills                                +44 (0) 20 3004 9512

About Hamak Gold Limited

 

Hamak Gold Limited (LSE: HAMA) is a UK listed company focussed on gold
exploration of a portfolio of licences in highly prospective areas of Liberia,
where significant drilling results have identified a new high-grade gold
discovery with the discovery hole returning 20m @ 7g/t Au near surface in its
Nimba licence on the border with Ivory Coast which is located in proximity to
the commercial Ity Gold Mine.

 

 

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