Great Western Mining Corp. plc
9 January 2014
Great Western Mining Corporation PLC
("Great Western Mining" or "GWM" or the "Company")
Successful £800,000 Placing Completed
Great Western Mining, the AIM and ESM quoted mineral exploration company with 73 sq. kilometres of mineral claims in south-west Nevada USA, announces that it has completed a placing (the "Placing") of 80,000,000 new ordinary shares of EUR 0.01 each (the "Placing Shares") at a price of £0.01 per Ordinary Share, raising gross proceeds of £800,000.
The proceeds of the Placing will be used to conduct a drill programme aiming to establish a JORC Resource at the Company's 100% owned M2-Smith copper target during the first half of 2014 and for general corporate and working capital purposes.
David Fraser, Chief Executive, commented:
"This funding represents a very positive step forward for the company, allowing it to progress a drilling programme of up to 20 reverse circulation bore holes at the M2 prospect in Nevada. Planning for the drill campaign will commence immediately, and actual drilling is expected to commence in February.
We are very pleased to have received support from both existing shareholders and new investors for this fund raise, and look forward to moving towards establishing a JORC Resource before mid- year, with the aim of creating value for our investors."
Directors' Subscription
Certain Directors have subscribed for the following Placing Shares on exactly the same terms as the other investors:
Director |
Placing Shares subscribed for |
Resulting holding of Ordinary Shares |
% of Enlarged Share Capital |
Emmett O'Connell |
1,250,000 |
12,060,343 |
8.33% |
Robert O'Connell |
1,250,000 |
8,670,490 |
5.99% |
Brian Hall |
1,250,000 |
1,583,333 |
1.09% |
Melvyn Quiller |
750,000 |
2,597,813 |
1.79% |
David Fraser |
500,000 |
500,000 |
0.35% |
Related Party Transaction
With the exception of Emmett O'Connell, Robert O'Connell, Brian Hall, Melvyn Quiller and David Fraser, whose participation in the Placing constitutes a related party transaction under AIM Rule 13 and ESM Rule 13, the Company's directors consider, having consulted with the Company's nominated adviser and ESM Adviser, Davy Corporate Finance, that the terms of the participation by the above named directors in the Placing are fair and reasonable insofar as the Company's shareholders are concerned.
Details of Placing and Total Voting Rights
Application will be made to the London Stock Exchange and the Irish Stock Exchange for the Placing Shares to be admitted to trading on AIM and ESM, with admission expected to occur on 14 January 2014. The Placing Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares including the right to receive dividends and other distributions declared following admission and represent 55.2% of the Company's enlarged issued share capital following the Placing.
Following the issue of the Placing Shares, the Company's enlarged issued share capital will be 144,823,806 Ordinary Shares of EUR 0.01 each. The above figure may be used by the Company's shareholders as the denominator for the calculations by which they may determine if they are required to notify their interest in or a change in their interest in the Company.
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