TIDMRMP
RNS Number : 3786W
Red Emperor Resources NL
23 April 2021
23 April 2021
Red Emperor Resources NL
Quarterly Activities and Cashflow Report
For the Period ended 31 March 2021
The Board of Red Emperor Resources NL (ASX/AIM: RMP) ("RMP",
"Red Emperor" or the "Company") provides the following commentary
on its activities and an Appendix 5B for the quarter ended 31 March
2021.
Proposed Acquisition of Panton PGM Project
On 25 March 2021 Red Emperor announced that it i ntends to
acquire Great Northern Palladium Pty Ltd ("GNP") which owns 80%,
and holds an option over the remaining 20%, of Panton Sill Pty Ltd,
the holder of the Panton Platinum Group Metals ("PGM") Project (the
"Panton PGM Project" or "Project") in the Kimberley region of
Western Australia (the "Proposed Acquisition"). Details of the
Proposed Acquisition are set out in such announcement, however the
key transaction highlights include:
-- All equity consideration of A$17.5m (shares and options) to be paid to GNP's shareholders
-- Pre-existing Independent JORC(2012) Mineral Resource Estimate ("MRE")* of:
o 14.3Mt @ 2.39g/t Pd, 2.19g/t Pt, 0.27% Ni for 2.06Moz Pd/Pt
-- Former Stillwater Mining Company Managing Director, Mick
McMullen, to be appointed as a strategic adviser and experienced
company director, Justin Tremain, to join the Board, both on
completion of the Proposed Acquisition
-- Subsequent to the quarter end, on 20 April 2021, Red Emperor
also announced the proposed appointments of Allan Mulligan and
Robert Mosig, as Proposed Non-Executive Technical Director and
Proposed Non-Executive Director respectively, and Shane Hibbird as
Consulting Geologist, all on completion of the Proposed
Acquisition
-- MRE outcrops at surface and remains OPEN, along strike and at depth
-- MRE covers approximately 3.5 kilometres of the circa 12
kilometres of mapped outcropping PGM-bearing chromite reefs
(remaining 8.5km relatively untested). No significant exploration
performed for almost 20 years
-- Located in 'Tier One' mining jurisdiction of Western Australia
-- Project benefits from having a higher palladium grade
relative to platinum grade, at a time of record palladium prices
(c.US$2,400/ounce)
-- Historic studies on the Panton PGM Project undertaken when
prevailing palladium prices were much lower
-- Step-out drilling to test for extensions to the MRE to
commence upon completion of the Proposed Acquisition, along with
metallurgical and mining studies
-- Located on granted mining leases with excellent
infrastructure including nearby (c.1 kilometre away) sealed highway
and an existing exploration decline
-- A$10M equity raising to be undertaken at a price of A$0.10
per share on a post consolidated basis (14:100 consolidation) to
provide strong financial position from which to advance the Panton
PGM Project
-- Enterprise value of approximately A$26M at the fund raising
price with cash of approximately A$9M upon successful completion of
the Proposed Acquisition and associated fundraising
-- The Company will seek shareholder approval for the Proposed
Acquisition under ASX Listing Rule 11.1.2 and re-comply with
Chapters 1 and 2 of the ASX Listing Rules
As set out in the Company's announcement of 25 March 2021, the
Company has been evaluating structuring options with its Nominated
Adviser from a UK perspective and in light of certain differences
between the requirements of the ASX Listing Rules and the AIM Rules
for Companies ("AIM Rules") and the general chronology, processes
and requirements of the two stock exchanges, the Board considers it
to be in the best interests of Red Emperor and its shareholders as
a whole to seek cancellation of the admission to trading of the
Company's ordinary shares on AIM (the "Cancellation") in order to
facilitate and ensure the timely implementation of the Proposed
Acquisition and associated fundraising in Australia on the ASX on
the commercial terms and timeframe agreed with the major
shareholders of GNP.
Accordingly, as announced on 20 April 2021, Cancellation is
scheduled to occur at 7.00 a.m. (London time) on 19 May 2021 and in
accordance with the guidance notes to AIM Rule 41, shareholder
consent in a general meeting of the Company is not required as the
Company is maintaining its listing on ASX, being an AIM Designated
Market as defined in the AIM Rules. It is expected that trading on
AIM will remain suspended until the Cancellation. It is currently
intended that re-admission to trading on AIM for the enlarged
entity will then be sought as soon as practicable (targeting July
2021) following successful completion of the Proposed Acquisition
and capital raising on the ASX in order to restore the enlarged
entity's dual listing at the earliest opportunity. There can be no
guarantee that the Company will be able to complete the Proposed
Acquisition or any alternative transaction and consequently be
re-admitted to trading on AIM.
Financial Commentary
The Quarterly Cashflow Report (Appendix 5B) for the period
ending 31 March 2021 provides an overview of the Company's
financial activities and can be viewed at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/3786W_1-2021-4-22.pdf
. The Company is in a strong financial position with A$3.98 million
in cash at the end of the quarter. This will be sufficient to fund
corporate costs well into 2021 and also facilitate the completion
of the Proposed Acquisition and satisfaction of the costs
associated with the re-compliance with Chapters 1 and 2 of the ASX
Listing Rules.
Payments for administration and corporate costs amounted to
A$249k and related to costs incurred in respect of and associated
with directors' fees, listing and compliance, legal and consulting
fees. The aggregate amount of payments to related parties and their
associates included in the quarter's cash flows from operating
activities was approximately A$72.5k (please refer to Table 1
below).
For further information, please visit www.redemperorresources.com or contact :
Red Emperor Resources NL - Greg
Bandy +61 8 9212 0102
Strand Hanson Limited (Nominated +44 (0) 20 7409
Adviser) - James Harris 3494
+44 (0) 203 463
Brandon Hill Capital (UK Broker) 5010
708 Capital Pty Ltd (Australian +61 (0) 2 9112
Broker) 2500
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European (Withdrawal)
Act 2018.
* - The Company announced the Mineral Resource Estimate in its
announcement entitled "Proposed Acquisition of +2Moz Panton PGM
Project" on 25 March 2021, which included the Competent Person
statements and consents required by Listing Rule 5.22. The Company
is not aware of any new information that materially affects the
information included in that announcement, and all material
assumptions and technical parameters underpinning the estimate in
that announcement continue to apply and have not materially
changed.
Table 1 : Payments to Related Parties of the Entity and their
Associates
Item Current Quarter Previous
(A$) Quarter (A$)
-----------------
Directors' Remuneration
Managing Director's Fees and Superannuation 49,275 49,275
Non-Executive Director Fees and Superannuation 8,213 8,213
Company Secretarial and CFO Fees 15,000 15,000
------------------------------------------------------ ----------------- ---------------
Total payments to related parties of the entity and
their associates 72,488 72,488
------------------------------------------------------ ----------------- ---------------
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END
MSCUUAORAWUSUUR
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April 23, 2021 02:00 ET (06:00 GMT)
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