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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSE
OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF UNITED
KINGDOM ("UK") DOMESTIC LAW PURSUANT TO THE MARKET ABUSE
(AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). MARKET
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URA Holdings
plc
("URA" or
the "Company")
Mine Acquisition and Institutional
Placing
Institutional Placing to raise £425,000
by the issue of 26,562,500 ordinary shares to fund the acquisition
of a controlling interest in the Curlew emerald mine and working
capital requirements (the "Fundraise")
URA Holdings plc ("URA") is pleased
to announce the acquisition of a majority interest in Prasinus
Exploration Pty Ltd ("Prasinus"), the owner of the Curlew Emerald Mine located in the
Pilbara Region of Western Australia ("Curlew Mine"). This acquisition
represents a significant addition to URA's asset portfolio, of
producing emerald mines and enhancing its strategic position in the
global gemstone market. In conjunction with the acquisition, URA is
delighted to announce that, pursuant to the Fundraise, it has
raised £425,000, (before
expenses) from existing institutional investors through a placing
(the "Placing"), issuing 26,562,500 new ordinary shares in the
capital of the Company ("New
Ordinary Shares") at an issue price of 1.6p per New Ordinary
Share representing a 6.67%
premium to the mid-market price at market close on 17 July
2024. The Fundraise was conducted for the Company by Capital Plus
Partners ("CPP").
Highlights of the Acquisition:
· Mining:
Curlew Mine is currently an active small-scale
open pit emerald producer of especially large emeralds with a
significant potential to scale up and expand.
· Mining
Equipment: The acquisition includes
all current mining equipment and infrastructure on site.
· Mining Lease:
The project has a valid Mining Lease running until
16th May 2044, covering an area of 21.02 hectares with no existing
Native Title claims.
· Location:
The Curlew Mine is situated 90km west of Marble
Bar and 5km north of the Woodstock-Marble Bar Road in Western
Australia.
· Historical
Significance: The mine has a long
history with documented emerald occurrences dating back to the
1920s. Active mining took place between 1976 and 1981 and mining
recently recommenced.
· Other minerals:
The licence area also contains saleable beryl and
lithium potential.
· Acquisition
Terms: URA has entered into a Share
Purchase Agreement to acquire a 65% interest in Prasinus with a
payment on signing of A$450,000 (ca. £237,000) and an option to
acquire the remaining 35% interest for a further A$300,000 (ca.
£158,000) in URA shares after an initial 12month period and
expiring on 18 October 2025.
Highlights of Fundraise
· £425,000, before expenses,
raised through the Placing of 26,562,500 Ordinary shares with
existing institutional investors at a price of 1.6p per New
Ordinary Share.
· Fundraise effected at a 6.67%
premium to the mid-market price at
market close on 17 July 2024 (last practicable date before pricing)
of 1.5p per Ordinary Share.
· The
net proceeds from the Fundraise will be used to fund the Curlew
Mine and as working capital for the Company's existing emerald
projects.
Ed
Nealon, Chairman of URA Holdings plc,
commented: "We are thrilled to add a controlling interest
in the Curlew Mine to our mining portfolio. This acquisition, and
our current working capital needs, are now fully funded by the
successful completeion of an institutional Placing; and is a
further testimony to the quality of URA's emerald
projects.
The acquisition not only solidifies our presence in the
emerald mining industry, but also aligns with our strategy to
invest in high-potential projects with strong growth prospects. The
Curlew Mine's history, and recent production success, are
testaments to its significant potential. The mine has substantial
potential to be scaled-up and expanded and, bearing in mind its
capacity to produce larger, high-quality stones, it complements our
existing emerald mining activities at Gravelotte. This strategic
acquisition reinforces URA's commitment to expanding its gemstone
mining operations and delivering exceptional value to its
stakeholders. The Curlew Mine has existing infrastructure,
machinery and equipment in place enabling rapid recommencement of
mining. We look forward to further developing the Curlew Mine and
establishing a robust presence in the emerald
market.
Following the closing of the successful institutional
placement, the acquisition is now fully funded and we would like to
thank the institutional placees for their continued support of URA
and, in particular, the acquisition. We propose to update the
market shortly on our operational activities and successes at
Gravelotte."
For the purposes of UK MAR, the
person responsible for arranging the release of this announcement
on behalf of URA is Dr Bernard Olivier, Chief Executive Officer of
URA Holdings Plc.
![A group of rocks and emeralds Description automatically generated](https://dw6uz0omxro53.cloudfront.net/3112337/d911ca64-d6c4-4093-92a7-589ddf24e459.jpg)
Figure
1: Emeralds in matrix and
various cut stones from the Curlew mine in Western Australia. All
stones were mined in 2023.
The cut stones are untreated and range from 0.45ct to 7.92ct.
Photo by L. Nillapat/GIA, stone courtesy of Matt Allen (The
Gemstone Trading Company)
Additional Information
Technical Aspects of the Curlew Project
The Curlew Mine is known for its
emerald deposits, which have been mined intermittently since the
1970s. Recent geological studies, and gemmological analysis, have
confirmed the presence of high-iron schist-hosted emeralds, similar
to those found in renowned locations such as Zambia and
Brazil.
Geological Characteristics and Setting
The emeralds found at the Curlew
Mine are associated with feldspar, quartz, and purple fluorite.
They form in the contact zone of pegmatite intrusions into mafic
rocks. The stones feature unique inclusions, including dark mica
crystals, feldspar, fluorite, and short needle-like structures,
aiding in their identification. According to the recent Gemological
Institute of America ("GIA") article published in January 2024,
(click
here for the link)
these emeralds exhibit characteristics in line
with other high-iron schist-hosted emeralds, including those from
Zambia and Brazil.
The current scope of the Curlew Mine
consists of diggings running north-south, approximately 500 meters
long and 1.5 meters wide, along the eastern flank of a shallow
valley. The depth of the orebody is unknown. Previous geological
mapping and bulk sampling, conducted in the 1980's, estimated
proven, probable and possible ore reserves at 1,700 tonne, 8,050
tonne and 12,420 tonne, respectively, at an emerald grade of 17.58
carat/tonne for all categories as reported in Australian Mineral
Resources Bulletin vol. 25; Gemstones of Western Australia.
Historical mining is reported to have occurred from a depth of 14
metres to the surface and is open pit mining.
Mining Ready
There are currently approximately
400 tonnes of tailings and 400 tonnes of ore ready for processing
at the Curlew Mine. The site is adjacent to a fully sealed road and
800 meters from the Mt Webber Iron Ore Mine, providing good access
to various mine services. The acquisition includes all current
infrastructure and equipment on site, including a 3-bedroom house,
a 20-tonne excavator, a fully equipped water bore, a new 16Kva
generator, and other essential mining equipment.
Mineralisation
The Curlew Mine features small
pegmatites and quartz veins with beryl mineralization, situated
between north-south fault splays. Dark mica schists within these
veins and pegmatites contain gem-quality emerald crystals and green
beryl. The size of these crystals ranges from less than a
millimetre to several centimetres in diameter. The emeralds show a
well-formed hexagonal outline often coated with dark mica crystals.
Chemical and spectroscopic analysis revealed that the emeralds are
rich in iron with Chromium-related absorption features and a strong
band around 810nm, attributed to the higher iron concentration. The
pegmatites comprise quartz-albite with accessory green beryl,
scheelite, coarse molybdenite crystals, and fine-grained purple
fluorite. Alluvial cassiterite, monazite, formanite, and
tauteuxenite are also found on the tenement.
Quality and Nature of Curlew Emeralds
The emeralds from Curlew are known
for their high quality, with a 10-carat stone from the 2023
production currently on the wholesale market for US$80,000. All
emeralds mentioned in the GIA report (click
here for the link)
are from last year's Curlew production.
Historically, mining at the Curlew Mine, reported the discovery of
several significant emeralds, including, amongst others, a 600
carat megacrystal, a 5700 carat medium-quality emerald and a 20,000
carat low-quality emerald.
Terms of the Acquisition:
URA has acquired a 65% controlling
interest from the owner of Prasinus, which owns 100% of the Curlew
mining licence. The principal terms of the Share Purchase Agreement
are:
· A
payment on signing of A$450,000 (ca. £237,000) for a 65% interest
in Prasinus.
· An
option to acquire the remaining 35% interest in Prasinus after a
12-month period for an additional A$300,000 (ca. £158,000) in URA
shares expiring on 18 October 2025.
Title Information:
· The
mining licence covers 21.02 hectares and is valid until 16th May
2044.
· The
area has no existing encumbrances or existing Native Title claims,
allowing immediate recommencement of mining activities.
Other Highlights:
· There
has been a significant increase in emerald demand over the last
decade, leading to higher prices without a corresponding rise in
production. Gems from traceable, non-conflict, and sustainable
mines are particularly sought after.
· URA
has a unique opportunity to market the Curlew Mine emeralds as
traceable, and of Australian origin, which commands a premium price
in the gemstone market.
· All
beryl produced has a ready market in Australia, selling for between
US$30 and $100 per kilogram.
· The
Curlew Mine property is surrounded by Eastern Resources, which has
drilled on the Curlew property and identified high-grade lithium
spodumene veins. Eastern Resources has expressed interest in
exploring the Curlew Mining licence area further for lithium, which
can be done without disrupting emerald mining
operations.
Application for Admission
An application will be made for the
26,562,500 New Ordinary Shares to be admitted to the transitional
category of the Official List and to trading on the Main Market for
listed securities of the London Stock Exchange plc. It is expected
that admission will take place by no later than 8.00 a.m. on 29
July 2024.
The 26,562,500 New Ordinary Shares
will, on admission, rank pari
passu in all respects with the Ordinary Shares currently in
issue, and will rank in full for all dividends and other
distributions hereafter declared, paid or made on the share capital
of the Company.
Total Voting Rights
Following the issue of the New
Ordinary Shares, the Company will have 302,658,090 Ordinary Shares
in issue, each share carrying the right to one vote.
This figure of 302,658,090 Ordinary
Shares may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change in their
interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.
Enquiries:
URA Holdings
plc
Chief Executive Officer
Bernard Olivier
Director
Peter Redmond
Chief Operating Officer
Jeremy Sturgess-Smith
|
+44 (0)746
368 6497
info@uraholdingsplc.co.uk
|
Peterhouse Capital Limited
Joint Corporate Broker
Lucy Williams
Duncan Vasey
Capital Plus Partners
Joint Corporate Broker
Keith Swann
Jon
Critchley
|
+44 (0)20
7469 0930
+44 (0)203
821 6169
+44 (0)203
821 6168
|
CMC
Markets
Joint Corporate Broker
Douglas Crippen
|
+44 (0)20
3003 8632
|
About URA Holdings plc
URA is focused on emerald mining
from the Gravelotte Emerald Mine (GEM). GEM is historically one of
the world's largest emerald mines and is located in South Africa.
URA Holdings is committed to sustainable and efficient mining
practices, utilising modern technology to revive one of the world's
historically significant emerald mines.
For more information about URA
Holdings Plc, including investor relations and corporate news,
please visit our website at www.uraholdingsplc.co.uk
or follow us through our social media
channel:
X(formally known as Twitter):
@ura_plc