REG - Zanaga Iron Ore - Tranche 2 Private Placement Completion & Upsizing

Zanaga Iron OreAnnouncement

26/03/2025 07:16

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RNS Number : 1399C  Zanaga Iron Ore Company Ltd  26 March 2025

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR

26 March 2025

 

 

Zanaga Iron Ore Company Limited

("ZIOC" or the "Company")

Tranche Two Private Placement Completion & Upsizing

 

Zanaga Iron Ore Company Limited (AIM: ZIOC) is pleased to provide an update to
shareholders on the Company's equity fundraise announced on 3 March 2025 (the
"Fundraise").

In accordance with the Fundraise, the Company entered into Subscriptions
totalling US$21.51 million of gross proceeds at a price of US$0.0516
(approximately 4.10 pence) per Ordinary Share (the "Issue Price"), with
Subscriptions to be completed in two tranches, with the completion of the
first tranche of US$17.43 million announced on 13 March 2025.

As announced on 3 March 2025, Greymont Bay, the cornerstone investor in the
Fundraise, was provided the right at its sole election to invest an additional
US$1.50 million in the second tranche at the Issue Price ("Additional T2
Subscription"). If Greymont Bay elected to make the Additional T2
Subscription, the gross proceeds of the second tranche would increase from
US$4.08 million to US$5.58 million, and the total gross proceeds from the
Fundraise would increase to US$23.01 million.

Greymont Bay has worked with the Company's management team, via its newly
established Zanaga Technical Committee, to assess the opportunity to
accelerate key Project workstreams and targeted milestones. Greymont Bay has
confirmed its support for the Company's proposed workstreams, and its
intention to subscribe for the Additional T2 Subscription. Following a request
from Gagan Gupta, Founder and CEO of Arise, who also invested in the
Fundraise, to increase his investment in ZIOC, Greymont Bay has provided Gagan
Gupta the right to commit a further US$0.30 million of the Additional T2
Subscription, reducing Greymont Bay's Additional T2 Subscription to US$1.20
million.

As a result of the above, Greymont Bay's total investment in the Fundraise has
increased to US$12.05 million with resulting ownership of 28.11% following
Admission to trading on AIM of the tranche two shares ("Second Admission").
Gagan Gupta's total investment in the Fundraise has increased to US$4.30
million with resulting ownership of 10.03% following Second Admission.

Application has been made for 108,139,536 Ordinary Shares to be admitted to
trading on AIM as part of the Second Admission. Second Admission is expected
to take place at 8:00 a.m. on 27 March 2025.

The Company believes that the provision of this additional funding now secures
its ability to progress a number of key metallurgical testwork initiatives
with the potential to provide significant upside value, as well as
accelerating its ability to achieve the pre-construction engineering phase
(FEED) objectives.

Martin Knauth, CEO of ZIOC, commented:

"I wish to thank all Parties involved in this fundraise and welcome the
support of our strategic investors in pursuing the value-adding objectives
recently announced."

Total Voting Rights

Following Second Admission, the total number of Ordinary Shares and voting
rights in the Company will be 830,879,996 and this figure may be used by
shareholders 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, the Company under the FCA's Disclosure Guidance and
Transparency Rules. The Company does not hold any shares in treasury.

 

ENDS

About ZIOC:

Zanaga Iron Ore Company Limited (AIM ticker: ZIOC) is an iron ore exploration
and development company, with the Company's flagship asset being its 100%
owned Zanaga Iron Ore Project located in the Republic of Congo, for which
the Government Mining Licence, Environmental Permit and Mining Convention are
all in place.

The Zanaga Iron Ore Project is a world-class asset with a 6.9 billion tonne
resource and 2.1 billion tonne reserve, designed for 30Mtpa production of
high-grade (66-68.5% Fe) pellet feed with very low levels of impurities. A
2024 Feasibility Study reaffirmed its robust economics. When fully ramped,
Phase 1 and Phase 2 combined could make Zanaga one of the largest iron ore
mines globally. With all key permits in place, Zanaga is positioned to
capitalise on growing demand for high-quality, low-impurity iron ore,
leveraging low operating costs and a cost-efficient slurry pipeline to the
port.

In light of the changes in the world's economy, and the growing demand for
low-carbon steel production, the Zanaga Project is well-placed to become one
of the largest producers of high grade premium pellet feed iron ore.

 

The Zanaga Iron Ore Company Limited LEI number is 21380085XNXEX6NL6L23.

 

 

For further information, please contact:

 

 

 Zanaga Iron Ore Company Limited                             Andrew Trahar

 Corporate Development and Investor Relations Manager        +44 20 3916 5021

 Panmure Liberum Limited                                     Scott Mathieson / John More / Josh Borlant

 Nominated Adviser, Financial Adviser and Corporate Broker   +44 20 3100 2000

 Shard Capital Partners LLP                                  Damon Heath

 Corporate Broker                                            +44 20 7186 9952

 BlytheRay                                                   Tim Blythe / Megan Ray / Will Jones

 Public Relations                                            +44 20 7138 3204

 

 

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