10 April 2014
Strategic Minerals Plc
("Strategic Minerals" or the "Company")
Issue of Equity and Corporate Update
Issue of equity
Strategic Minerals Plc (AIM: SML; USOTC: SMCDY), the magnetite iron ore producer and exploration company, announces that it has raised approximately £1,000,000 before expenses from new investors through subscription to 125,000,000 ordinary shares (the "Subscription Shares") at a price of £0.008 per Subscription Share (the "Subscription Price"). The funds raised will be used primarily for working capital purposes.
Further, the Company has issued 45,000,000 ordinary shares (the "Glencore Shares") in the Company to Glencore AG at the Subscription Price, in exchange for an obligation owed to them.
Corporate update
As previously announced on 4th March 2014, the Company reported that its Cobre stock pile operation in New Mexico has been reorganised to service the domestic market for magnetite in the United States.
Additionally, the Board has undertaken a corporate review resulting in the streamlining of its corporate overheads and significant savings, estimated to be approximately £650,000 on an annualised basis as compared to fiscal 2013. These cost savings are expected to come into effect from Q2 2014
James Fyfe, Executive Chairman of Strategic Minerals, said:
"We are delighted to announce this successful placing to strengthen our balance sheet. Our group overhead reductions mean that we expect our on-going corporate costs to be fully covered by our operating business in New Mexico, which favourably positions the Company as it seeks to add new operating assets to its portfolio."
Application has been made for the Subscription Shares and the Glencore Shares to be admitted to trading on AIM ("Admission") and it is anticipated that Admission will occur on 17 April 2014. On Admission the Subscription Shares and the Glencore Shares will rank pari passu with the Company's existing ordinary shares of £0.001 each ("Ordinary Shares").
Total voting rights
Following Admission the total number of Ordinary Shares in issue and voting rights in the Company will be 723,825,560. 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 share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.
The placement was carried out within the Company's existing share authorities.
For further information: Company |
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Strategic Minerals plc |
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James Fyfe, Executive Chairman |
+44(0) 20 7389 0708 |
Nominated Adviser/Joint Broker |
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Allenby Capital Limited |
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Jeremy Porter / James Reeve |
+44 (0) 20 3328 5656 |
Joint Broker |
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Daniel Stewart & Company Plc |
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Martin Lampshire / David Hart |
+44 (0) 20 7776 6550 |
Financial PR |
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Tavistock Communications |
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Jos Simson |
+44 (0) 207 920 3150 |
