Completion of placing
September 17 2008 - 7:32AM
UK Regulatory
Completion of placing
AIM Release
17 September 2008
Minerva Resources Plc (AIM:MVA)
('Minerva Resources' or 'the Company')
Placing raises �607,500
Minerva Resources plc, the UK based mineral exploration and
development company with prospects in Ethiopia, is pleased to
announce that it has successfully raised �607,500 via a placing at
2.5p.
HIGHLIGHTS
* The Company has successfully raised �607,500;
* Ambrian Capital plc ('Ambrian') has agreed to capitalise the
outstanding loan made by Ambrian to the Company, amounting to
�334,480;
* Following this transaction Ambrian has a 38.2% stake in the
Company; and
* The proceeds of the placing will be used to develop the Tulu Kapi
JORC Inferred Resource and to commence the development of the
Tulu Kapi JORC Indicated Resource.
Shares Placed
The directors of Minerva Resources are pleased to announce that the
Company has placed 24,300,000 new ordinary shares of 2.5 pence each
(the 'Placing Shares') at 2.5 pence per ordinary share (the 'Placing
price') through its broker WH Ireland Limited, and Wills & Co
Corporate Ltd (Wills), raising �607,500 gross of expenses (the
'Placing').
In addition, Ambrian has agreed to capitalise the outstanding loan
made by Ambrian to the Company, amounting to �334,480, by subscribing
for 13,379,200 new ordinary Shares ('Ambrian Shares') at the Placing
Price. Following this transaction, Ambrian will hold 57,879,200
ordinary shares in the Company, representing 38.2% of the enlarged
share capital of the Company.
The Placing Shares and Ambrian Shares are to be issued together with
one warrant entitling the holder to subscribe for one ordinary share
in the Company at 4 pence per ordinary Share (the 'Warrants'). The
Warrants granted shall be exercisable at any time up to 18 months
from the date of admission of the Placing Shares to trading on AIM
becoming effective. The warrants will not be admitted to trading on
AIM.
Wills will receive 2,070,000 new ordinary shares and 2,070,000
Warrants, entitling the holder to subscribe for one ordinary share in
the Company at 4 pence per ordinary Share, in lieu of fees for a
commission on the value of the shares placed by Wills, the production
of an initial research note and a corporate finance fee.
Application will be made for the 39,749,200 new ordinary shares to be
admitted to trading on Aim and dealings are expected to commence on
30 September 2008. Following the admission of these new ordinary
shares, the Company's issued ordinary share capital will consist of
151,492,160 ordinary shares of 2.5 pence each.
Use of Proceeds
The proceeds of the placing will be used to complete Stage 1 of the
proposed exploration programme, which is the development of the Tulu
Kapi JORC Inferred Resource and commence Stage 2, which is the
development of the Tulu Kapi JORC Indicated Resource. The timing of
the further development of the Tulu Kapi Project is expected to occur
in the first quarter of 2009 and it is anticipated that the Company
will seek further funding.
Related Party Transactions
The capitalisation of the Ambrian loan is being treated as a related
party transaction, under the AIM rules, as Ambrian is a substantial
shareholder. Accordingly, the directors of the Company, with Roger
Clegg abstaining, as he is a director of an Ambrian group company,
consider that, after consultation with WH Ireland, the Company's
nominated adviser, the terms of the transaction are fair and
reasonable insofar as the shareholders of Minerva Resources are
concerned.
Mr. Terry Ward, as a trustee of the Ward Superannuation Fund, which
is the pension fund for Mr. Terry Ward, a director of the Company,
and of which he and his wife, Christine Ward, are the only trustees
of the Fund, has participated in the placing by subscribing for
1,000,000 new ordinary shares at the Placing Price. Following this
transaction, the Ward Superannuation Fund will hold 2,522,400
ordinary shares in the Company, which represent 1.7% of the enlarged
share capital. Accordingly, the directors of the Company, with Terry
Ward abstaining, consider that, after consultation with WH Ireland,
the Company's nominated adviser, the terms of the transaction are
fair and reasonable insofar as the shareholders of Minerva Resources
are concerned.
Terry Ward, Managing Director, commented today,
"The amount of new monies raised in this difficult climate indicates
the confidence that our existing and new shareholders have in the
potential of the assets and the ability of the management to develop
these assets. We are heartened by the continuing tremendous support
from Ambrian Capital plc and welcome the new shareholders on the
register.
"We look forward to progressing the Resource at Tulu Kapi to the JORC
Inferred standard, the further development of the project and its
satellite prospects and the investigation into the potential for
these prospects to be combined with the Tulu Kapi Project in the
establishment of a 'one treatment plant - multiple feed sources
scenario'".
For further information please contact:
Terry Ward
Minerva Resources plc
Tel: +44 (0)20 73795012 / (0) 7989571576
terry.ward@minervaresources.com
web: www.minervaresources.com
Nick Rome
Bishopgate Communications Ltd
Tel: +44 (0)20 75623366
nick.rome@bishopgatecommunications.com
James Joyce / Sarang Shah
W. H. Ireland
Tel: +44 (0)20 72201666
james.joyce@wh-ireland.co.uk
Notes to Editors
Minerva Resources plc is a UK based mineral exploration and
development company quoted on London's Alternative Investment Market
(AIM:MVA). The Company is intent on delivering shareholder value by
increasing and developing its mineral resources in a socially and
environmentally responsible manner.
The main focus is resource development in Ethiopia where the Company
has first-mover advantage on prospective ground on the Arabian-Nubian
shield. Key projects include the gold resources at the Tulu Kapi,
Gudeya-Guji, Guji and Dina Prospects and the Yubdo Platinum Mine,
located in western Ethiopia, some 560km west of Addis Ababa.
Tulu Kapi was mined in the 1930s by an Italian company. In the 1970s,
the United Nations Development Programme mapped and drilled Tulu
Kapi. Tan Range Exploration carried out soil sampling, further
mapping and drilling in the 1990s. These two phases of work confirmed
mineralisation extending over a strike length of 1.5km.
Minerva Resources has completed 25 diamond drill holes to date, at
Tulu Kapi, on its resource drilling programme on a 600m section,
after encouraging Minerva Resources ground mapping, data
reinterpretation and excellent scout drilling results.
Scout drilling programmes have been completed at the Gudeya-Guji,
Guji and Dina gold prospects, which are located in close proximity to
Tulu Kapi. The drilling has shown mineralised intersections on all
three prospects.
The results from the drilling on Tulu Kapi, which are shown in the
latest drilling report announcement on the Company's website,
www.minervaresources.com, and the satellite prospects and their close
proximity point towards a new gold province with the potential for
the establishment of a 'one treatment plant -multiple feed scenario'.
The Company is examining the potential to expand the small scale
platinum production operations at Yubdo, some 25km from the Tulu Kapi
Project. A pilot gravity recovery plant has been installed, a
metallurgical research programme has been initiated and further
exploration activities have commenced on the 9km by 1.5km surface
expression of the orebody.
Minerva Resources also has a presence in Central Asia, operating a
Technical Services Division undertaking contract drilling and the
provision of geological services from the Kyrgyz Republic.
In Sierra Leone, the Company holds gold, platinum and diamond
exploration licences, which will for the most part continue to be
developed by existing Joint Venture partners.
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