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Anglesey Mining #AYM – Proposed Placing and Subscription to raise approximately £415,000
Anglesey Mining Plc (AIM:AYM) is pleased to announce its intention to raise gross proceeds of approximately £325,000 by means of a proposed placing (the “Placing”) of approximately 32,500,000 new ordinary shares of nominal value £0.01 (“Ordinary Shares”) each in the capital of the Company (the “Placing Shares”), to certain institutional and other investors, and a direct subscription of 9,000,000 new ordinary shares, to raise approximately £90,000 (the “Subscription”) (together the “Fundraising”), in each case at a price of 1p pence per share (the “Issue Price”).
Rob Marsden and Andrew King are directors of the Company and have indicated their intention to subscribe for new Ordinary Shares as part of a subscription. Energold Minerals Inc. has also indicated its intention to subscribe for new Ordinary Shares as part of a subscription.
The Issue Price represents a discount of approximately 16.67 per cent. to the Closing Price of 1.2 pence per Ordinary Share on 27 June 2024 being the latest practicable business day prior to the publication of this Announcement.
The Placing is to be conducted by way of an accelerated bookbuild (the “Bookbuild”) process which will commence immediately following this Announcement and will be subject to the terms and conditions set out in the Appendix to this Announcement.
The Placing and Subscription is conditional on, amongst other matters, admission of the Placing Shares and the Subscription Shares to trading on AIM.
A further announcement confirming the closing of the Bookbuild and the number of Placing Shares and Subscription Shares to be issued pursuant to the Placing and Subscription is expected to be made in due course.
WH Ireland Limited (“WH Ireland”) is acting as bookrunner in relation to the Placing.
Capitalised terms used but not otherwise defined in this Announcement shall have the meanings ascribed to such terms at the end of the Appendix to this Announcement, unless the context requires otherwise.
Fundraising Highlights
- Placing and Subscription to raise approximately £415,000 (before expenses) from certain existing shareholders and other institutional investors.
- Placing to be conducted via an accelerated bookbuild process launching today.
- Issue Price of 1 pence per share represents a discount of 16.67 per cent. to the closing mid-market price of the Company’s existing Ordinary Shares on 27 June 2024, being the latest practicable business day prior to the publication of this Announcement.
- Certain directors of the Company have also indicated their intention to participate in the Subscription at the Issue Price.
Reasons for the Fundraise, Use of Proceeds and Transaction Summary
The Company is undertaking the Fundraise to progress its corporate and operational strategy and the net proceeds will therefore be applied towards:
- Developmental work at Parys Mountain
- Advancing development options at Grängesberg Iron Ore Mine
- Debt repayment; and
- General working capital purposes
The Company is advancing a number of initiatives with a view to supporting its cash position, however if these are not successful the Company will need to raise further funds towards the end of the calendar year to continue to progress its activities.
The Placing and Subscription
The Company intends to raise gross proceeds of up to £415,000 (before expenses) from participants in the Placing and Subscription.
WH Ireland is acting as Bookrunner (“Bookrunner”) in connection with the Placing. The Placing Shares are being offered by way of an accelerated bookbuild (the “Bookbuild”), which will be launched immediately following this Announcement, in accordance with the terms and conditions set out in the Appendix to this Announcement.
Admission of the Placing Shares is conditional, inter alia, upon the placing agreement dated 27 June 2024 between the Company and the Bookrunner (the “Placing Agreement”) not having been terminated and becoming unconditional prior to 04 July 2024 (or such later time and / or date as the Company and Bookrunner shall agree, not being later than 28 July 2024).
The Placing is also conditional upon, amongst other things:
- admission of the Placing Shares becoming effective by no later than 8.00 a.m. on 04 July 2024 (or such later time and / or date as the Company and Bookrunner shall agree, not being later than 28 July 2024);
• the delivery by the Company to the Bookrunner of certain documents required under the Placing Agreement;
• the Company having fully performed its obligations under the Placing Agreement to the extent that such obligations fall to be performed prior to admission of the Placing Shares;
• the Placing Agreement not having been terminated by the Bookrunner in accordance with its terms.
The timing of the closure of the Bookbuild and the allocation of the Placing Shares to be issued at the Issue Price are to be determined at the discretion of the Company and the Bookrunner.
Admission to trading
Application will be made to the London Stock Exchange for admission of the Placing Shares and the Subscription Shares to trading on AIM. It is expected that admission will become effective and dealings in the Placing Shares and Subscription Shares will commence at 8.00 a.m. on or around 04 July 2024.
The Placing Shares and Subscription Shares will be issued fully paid and will rank pari passu in all respects with the Company’s existing Ordinary Shares.
A further announcement will be made following the closure of the Bookbuild, confirming final details of the Placing.
The Placing is not being underwritten and the Placing is not conditional on a minimum amount being raised.
The person responsible for arranging for the release of this announcement on behalf of Anglesey is Rob Marsden.
For further information on the Company, please visit www.angleseymining.co.uk or contact:
Enquiries:
Anglesey Mining Plc www.angleseymining.co.uk
Rob Marsden, Chief Executive Officer Tel: +44 (0)7531 475111
Andrew King, Interim-Chairman Tel: +44 (0)7825 963700
Davy (Nominated Adviser & Joint Broker)
Brian Garrahy / Daragh O’Reilly Tel: +353 1 679 6363
WH Ireland Limited (Joint Broker and Bookrunner)
Harry Ansell / Daniel Bristowe Tel: +44 (0) 207 220 1666
Katy Mitchell / Andrew de Andrade
Anglesey Mining #AYM – Alan Green talks to CEO Rob Marsden at Parys Mountain
Alan Green talks to recently appointed Anglesey Mining #AYM CEO Rob Marsden direct from the Company’s flagship Parys Mountain mine. Rob discusses his career, in particular the years he spent working at Rio Tinto and also the 3 years he spent heading up the Rio investment committee, charged with seeking new investment opportunities for the mining giant. Rob then covers his work as a consultant, working around the world and then the time he spent with former CEO Jo Battershill at Parys Mountain a few years ago, which led up to his joining the board. Rob provides his overview of the latest assay results from hole NCZ003, and explains how he believes the previous drilling in the 1960’s and 1970’s can give the team ‘incredible confidence’ going forward. We then look at how the team plan to approach the pre feasibility study, via both divergent and convergent phases leading to a robust PFS ahead of the move to feasibility study. Rob then maps out what investors can expect in the coming weeks and months, and how this week he has assembled a team of colleagues including a longstanding veteran Rio Tinto geologist who will bring ‘fresh eyes’ to the project.
Anglesey Mining #AYM – Developing the Parys Mountain Project in 2024
In this exclusive, full length interview, Anglesey Mining #AYM director Jo Battershill discusses the illustrious history of the Parys Mountain project in Anglesey and looks at the plans to develop the project in 2024. The interview covers:
- Current drilling campaign and pre assay core assessment at the Northern copper Zone
- ‘Unusually Conservative’ PEA numbers
- The project’s clean tech metal profile
- Future Opportunities and Peer Group comparisons
- Stakes held in Grangesberg Iron Ore Project and Labrador Iron Mines
- Near term milestones and next steps
Anglesey Mining #AYM – Half yearly report for the six months to 30 September 2023
Chairman’s Statement and Management Report
During the reporting period significant advances were made at the company’s key asset, Parys Mountain, with the following developments:
- Submission of the Pre-Application Inquiry to the North Wales Mineral Planning Authority and hosting an on-site hearing for over 20 statutory consultee groups.
- Further resource update work for the Morfa Dhu zone (White Rock and Engine Zone) with 93% of the contained resources now being in the Measured and Indicated categories.
- Commencement of confirmatory metallurgical test work and pre-concentration trade-off with 340kg of Morfa Dhu material sent to Grinding Solutions Limited. Preliminary results were received subsequent to the end of the period with overall recoveries either in-line or better than those received from previous test work.
- Detailing the planned drilling programme for the Northern Copper Zone, the first drilling of this high potential area since 1972. Drilling recommenced in October 2023 and the first hole was completed on 11 December at a depth of 635 metres. Visual logging of the core suggests two zones of sulphide mineralisation were intersected with the Northern Copper Zone interpreted to be between 351 – 540 metres and a second zone, potentially the Garth Daniel Zone, between 560 – 586 metres (all downhole depths). As expected, the interpreted Northern Copper Zone has varying levels of sulphide accumulation. The lower zone of sulphide accumulation between 560 – 586 metres demonstrates areas with very high levels of chalcopyrite. A first batch of samples will be dispatched to the assay laboratory prior to Christmas with results expected in Q1 2024.
Progress at the 49.75% owned Grängesberg iron ore project in Sweden included ongoing discussions with potential development partners and the commencement of planning for the environmental baseline gap analysis with a locally based consulting group, as was recommended in the Pre-Feasibility Study Update.
Board of Directors and Management
Following the resignation of Jo Battershill and the results of the annual general meeting held in late October 2023 the company is actively engaged in the search for a new Chief Executive Officer and Non-Executive Chairman. We are very pleased that Jo Battershill has agreed to remain on the board as a non-executive director.
Financial
The group had no revenue for the period. The loss for the six months to 30 September 2023 was £604,787 (2022 comparative period £468,656) and expenditure on the mineral properties in the period was £174,748 compared to £320,887 in the same period in 2022. This reduction was primarily due to a cessation in Parys Mountain drilling activity.
Net current assets as at 30 September 2023 were £711,635 compared to £86,781 as at 31 March 2023 with the increase being due to equity private placements in May and July 2023, which raised a total of £1.5 million to fund current operations.
Summary
We continue to firmly believe that Anglesey Mining is in a good position to advance its two key assets at Parys Mountain and Grängesberg over the next year.
At Parys Mountain, drilling of the Northern Copper Zone is expected to generate strong results leading to the conversion of significant areas of the resource from the Inferred category through into the higher confidence Indicated category. From a development study perspective, it is important that the Northern Copper Zone is upgraded to the Indicated resource category as this will allow the incorporation of this zone into any potential mineral reserve. Metallurgical test work will also be required on the Northern Copper Zone to confirm the +93% recoveries demonstrated by the original test work completed in 1969 at the Lakefield Plant in Ontario, Canada. As suggested in the initial review of the Northern Copper Zone in 2022, we believe that the system could be significantly larger than currently modelled, although this will require additional drilling to test prospective areas.
At Grängesberg, we continue to explore options to advance the project. This initially requires finalising some of the recommendations from the preliminary feasibility study update, including baseline studies for the environmental impact assessment and updating the mining reserve to include some improvements to the proposed mine plan. We are also exploring a number of options to optimise the ownership structure of Grängesberg Iron AB following our acquisition of an additional 29.8% stake in February 2023.
Outlook
Persistent global uncertainties and difficult financial markets have resulted in challenging conditions in which to operate. However, we continue to be encouraged by growing investor interest in Anglesey Mining which was demonstrated by the successful raising of £1.5 million during the reporting period. We believe that investors are finally recognising the progress made over the last two years after a period of relative inactivity.
Over the course of the next year, we look forward to advancing the Parys Mountain project and to optimising the ownership and potential of the Grängesberg iron ore project.
In closing, on behalf of the board of directors, I would like to thank our shareholders for their ongoing support, and to confirm that I remain very confident that the assets held by Anglesey Mining will deliver significant value as they continue to be progressed over the next year.
Andrew King
Interim Chairman
19 December 2023
Link here to view the full financial statements