REG - Lexington Gold Ltd - Renewal of Jelani Right, Issue of Equity & TVR

Lexington GoldAnnouncement

13/05/2024 08:30

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RNS Number : 1437O  Lexington Gold Limited  13 May 2024

13 May 2024

Lexington Gold Ltd

("Lexington Gold" or the "Company")

 

Renewal of Jelani Resources Prospecting Right

Issue of Equity and Total Voting Rights

 

Lexington Gold (AIM: LEX), the gold exploration and development company with
projects in South Africa and the USA, further to its announcements of 15 May
2023 and 7 September 2023 regarding its acquisition of White Rivers
Exploration Proprietary Limited ("WRE"), is pleased to announce that the
prospecting right owned by Jelani Resources Proprietary Limited ("Jelani
Resources") (the "Jelani Resources Prospecting Right") has now been formally
renewed until 29 May 2026.

 

Highlights:

·     The renewal of the Jelani Resources Prospecting Right was a
milestone for the issue of, in aggregate, 25,806,451 deferred consideration
shares in respect of the Company's acquisition of WRE such that the following
new common shares are being issued:

o  19,387,703 shares to Mark Creasy or his nominee; and

o  6,418,748 shares to Sunswell Holdings Pty Limited ("Sunswell") or its
nominees

(together, the "Initial Deferred Consideration Shares").

·     Further to the issue of the Initial Deferred Consideration Shares:

o  Mr Creasy and his nominees will, in aggregate, own 53,254,768 common
shares representing approximately 13.35 per cent. of the Company's enlarged
issued share capital; and

o  Freefire Technology Ltd, one of Sunswell's nominees will own 15,250,947
common shares representing approximately 3.82 per cent. of the Company's
enlarged issued share capital.

Ed Nealon, Lexington Gold's Non-Executive Chairman, commented:

"We are pleased to announce the successful renewal of the Jelani Resources
Prospecting Right and associated issue of the initial tranche of deferred
consideration shares linked to the achievement of this key milestone, as per
our announcements of 15 May and 7 September 2023 detailing the terms of our
acquisition of WRE."

Further information on the Jelani Resources Prospecting Right & Jelani
Resources

The shareholders of Jelani Resources are Lorraine Gold Mines Limited and
Avgold Limited (both subsidiaries of Harmony Gold Mining Company Limited (JSE:
HAR) ("Harmony")) (together, the "Harmony Group") (35%) and WRE (65%).  The
Jelani Resources Prospecting Right covers an area adjacent to Harmony's Target
Mine in the north-western portion of the Welkom Goldfields in South Africa.
 

 

In 2018, WRE established an independently estimated gold resource estimate
attributable to the Jelani Resources project, but such estimation has not yet
been formally verified or accepted by the shareholders of Jelani Resources.
 Although not independently audited, the resource estimate comprised 6.02Moz
of gold of which approximately 2.95Moz would potentially be attributable to
WRE if all the Jelani project hurdles are ultimately achieved, including
successful feasibility studies, a decision to mine being made by Jelani
Resources' shareholders and WRE choosing to participate in the funding of
future development costs in order to retain a 49 per cent. interest in Jelani
Resources.  The estimated mineral resources within a one kilometre 'Buffer
Zone' are attributable solely to Harmony (100%).  Harmony has indicated that
Jelani Resources will, subject to the successful completion of a bankable
feasibility study in due course, be afforded the opportunity to mine the
mineral resources in such Buffer Zone provided that: (i) a decision to mine
has been taken; (ii) commercial terms have been agreed between the parties;
and (iii) approval from the board of directors of Harmony has been obtained.

 

Lock-up and Orderly Market Arrangements

 

The Initial Deferred Consideration Shares are subject to a 12-month lock-up
arrangement from their date of issue and thereafter a 12-month orderly
market arrangement.

 

Application to trading on AIM and Total Voting Rights

 

Application will be made to the London Stock Exchange for the 25,806,451
Initial Deferred Consideration Shares to be admitted to trading on AIM
("Admission"). It is expected that Admission will become effective and that
dealings in such new common shares will commence at 8.00 a.m. on or around 20
May 2024.

 

On Admission, the number of common shares in issue outside treasury and the
total voting rights in the Company will be 398,969,609. 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 to their interest in, Lexington Gold under the notification
provisions incorporated in the Company's Bye-laws.

 

 

For further information, please contact:

 

 Lexington Gold Ltd                                      www.lexingtongold.co.uk (http://www.lexingtongold.co.uk)

 Bernard Olivier (Chief Executive Officer)               via Yellow Jersey

 Edward Nealon (Chairman)

 Mike Allardice (Group Company Secretary)

 Strand Hanson Limited (Nominated Adviser)               www.strandhanson.co.uk (http://www.strandhanson.co.uk)

 Matthew Chandler / James Bellman / Abigail Wennington   T: +44 207 409 3494

 WH Ireland Limited (Joint Broker)                       www.whirelandplc.com (http://www.whirelandplc.com)
 Katy Mitchell                                           T: +44 207 220 1666

 Peterhouse Capital Limited (Joint Broker)               www.peterhousecap.com (https://peterhousecap.com/)

 Duncan Vasey / Lucy Williams (Broking)                  T: +44 207 469 0930

 Eran Zucker (Corporate Finance)

 Yellow Jersey PR Limited (Financial Public Relations)   www.yellowjerseypr.com (http://www.yellowjerseypr.com)

 Charles Goodwin / Annabelle Wills                       T: +44 7747 788 221

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

 

 

Note to Editors:

 

Lexington Gold (AIM: LEX) is a gold exploration and development company
currently holding interests in four diverse gold projects, covering a combined
area of approximately 1,675 acres in North and South Carolina, USA and in five
gold projects covering approximately 89,505 hectares in South Africa.

 

Further information is available on the Company's website:
www.lexingtongold.co.uk (http://www.lexingtongold.co.uk) or follow us through
our social media channel:

X(formally known as Twitter): @LexGoldLtd

 

Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.

 

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