REG - Harvest Minerals Ltd - £1,000,000 Equity Issue and TVR

Harvest MineralsAnnouncement

02/07/2024 07:30

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RNS Number : 7640U  Harvest Minerals Limited  02 July 2024

 

02 July 2024

Harvest Minerals Limited

("Harvest" or the "Company")

 

£1,000,000 Equity Issue and TVR

 

Harvest Minerals Limited, the AIM listed organic fertilizer producer, is
pleased to announce an equity issue package consisting of a placing
("Placing") that has raised gross proceeds of c. £425,000, and the settlement
of c. £575,000 of director / company secretary fees, through the issue of, in
aggregate, 100,000,000 new ordinary shares of no par value at a price of 1p
("Issue Price") (the "Equity Issue").

 

The Placing was undertaken by the Company's broker, Tavira Financial Limited
("Tavira").

 

Use of Proceeds

The net funds raised from the Placing will be used to continue with the
advancement of the Arapua Project, in particular to carry out further drilling
and testwork to better delineate the potential of the Rare Earth Elements
("REE") identified and to meet ongoing working capital requirements, both
operationally as sales of KP Fertil advance, and corporately.

 

Issue of Settlement Shares

 

The Equity Issue included the issue of, in aggregate, 57,736,600 new Ordinary
Shares to three of the four Board members, and to Palisade Business
Consulting, which provides the Company with accounting and company secretary
services, as settlement for all fees outstanding to the various parties up
until 30 June 2024. As has been previously disclosed, Jack James is a director
and shareholder of Palisade Business Consulting:

 

 Person                              Fees Owed (£)   No. of Settlement Shares issued
 Brian McMaster                      286,000         28,600,000
 Luis Azevedo                        160,000         16,000,000
 Jack James                          28,311          2,831,100
 Palisade Business Consulting (PBC)  103,055         10,305,500
 Total                               577,366         57,736,600

 

 

Following the issue of the Settlement Shares, and the shares issued pursuant
to the Placing, the Directors holdings will be as below:

 

                                               Shareholdings
 Director              Position                Current    Settlement Shares  Holding on Admission  % on

                                               Holding                                             Admission
 Brian McMaster        Executive Chairman      7,242,996  28,600,000         35,842,996            12.4%
 Luis Azevedo          Non-Executive Director  1,645,135  16,000,000         17,645,135            6.1%
 Jack James, inc. PBC  Non-Executive Director  Nil        13,135,200         13,135,200            4.5%

 

Brian McMaster, Executive Chairman commented:

"This is the first time Harvest has raised equity in over 6 years, being a
testament to the robustness of the core business.  The opportunity to explore
for REE is an interesting development and we look forward to reporting results
in the coming months.  The Board welcomes new shareholders to the register
and as a sign of further support the board has converted substantial sums to
equity, improving our balance sheet position."

Related Party Transaction

The issue of the Settlement Shares constitutes a related party transaction
under AIM Rule 13 of the AIM Rules for Companies. Alex Penha, as the
independent director of the Company for the purposes of this transaction,
considers, having consulted with the Company's Nominated Adviser, that the
terms of the issue of the Settlement Shares are fair and reasonable insofar as
the Company's shareholders are concerned.

 

Application to trading on AIM

 

The Equity Issue is conditional on Admission.  Application will be made to
the London Stock Exchange for the 100,000,000 new Ordinary Shares to be
admitted to trading on AIM. It is expected that Admission will become
effective and that dealings in the new Ordinary Shares will commence at 8.00
a.m. on 5 July 2024 ("Admission").

 

Total Voting Rights

 

Following the Equity Issue, the total issued share capital of the Company will
consist of 289,169,217 Ordinary Shares with voting rights.  The Company does
not hold any Ordinary Shares in treasury and accordingly there are no voting
rights in respect of any treasury shares.

 

On Admission, the abovementioned figure of 289,169,217 Ordinary Shares 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, Harvest under the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.

 

Enquiries:

 Harvest Minerals Limited                                   Brian McMaster (Chairman)  Tel: +44 (0) 203 940 6625

 Strand Hanson Limited (Nominated & Financial Adviser)      Ritchie Balmer             Tel: +44 (0) 20 7409 3494

                                                            James Spinney

 Tavira Financial                                           Jonathan Evans             Tel: +44 (0) 20 3192 1733

 (Broker)

 

 

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