26 January 2024
GCM Resources
plc
("GCM" or
the "Company")
(AIM:GCM)
Subscription to raise £500,000
GCM Resources plc, an AIM quoted
mining and energy company, announces
that it has successfully
raised gross proceeds of £0.5m by means of
a direct subscription (the "Subscription") of new Ordinary Shares (the "Subscription Shares") at a price of 1.65
pence per share (the "Subscription
Price"). The Company will
need to carry out an additional fundraise
before the end of May 2024 to
fund its working capital for the next 12
months.
The Subscription Price represents a
discount of 37.7 per cent to the Closing Price of
2.65 pence per Ordinary Share on 25 January 2024, being the latest practicable business day
prior to the publication of this
announcement.
The net proceeds
of the Subscription
will provide the Company
with a source of general working capital
to progress its existing
projects.
Subscription summary
• The Subscription has
raised
£500,000
(before expenses) through the issue of
30,303,040
Subscription Shares at
the Subscription Price.
• The Subscription
Shares will represent 12.7
per cent. of the Enlarged Issued Share
Capital.
• The net proceeds of the Subscription will be used
to provide the Company
with a source of general working capital to progress its existing
projects.
The Subscription
The Company will issue
30,303,040 Subscription
Shares, to raise gross
proceeds of £500,000 to participants in
the Subscription.
The Subscription Shares will be admitted ("Admission") to trading on the AIM
market ("AIM") of London Stock Exchange plc ("LSE") on or
around 2 February
2024.
Subscription Information
The Subscription is conditional, inter alia,
on Admission
of the Subscription Shares to trading
on AIM and the lifting of the
suspension of trading in the Company's
shares. The Subscription and issue of warrants
(as detailed below) has
been conducted utilising the Company's
existing share authorities.
The Subscription Shares will be issued,
credited as fully paid, and will rank pari passu with the existing
Ordinary Shares in issue in the capital of the Company, including
the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of
such shares after the date of their
issue.
Application has been made to the London Stock
Exchange for, in aggregate,
30,303,040
new Ordinary Shares to be admitted to AIM. It is
expected that Admission will become
effective on 2 February 2024. Following
Admission, the Company's enlarged issued share capital will
comprise 237,825,076 Ordinary Shares with voting rights in the Company. As the Company holds no shares in treasury, this is the
total number of the voting rights in the Company which may be used
by shareholders as the denominator for the calculations by which
they will determine if they are required to notify their interest,
or a change in the interest, in the share capital
of the Company under Chapter 5 of the FCA's Disclosure Guidance and
Transparency Rules as reflected in the Company's articles of
incorporation.
Issue of warrants
In addition, Allenby Capital
Limited, who are acting as agent in respect of the Subscription,
will be issued with 303,030 warrants to subscribe for
new Ordinary Share at a price of
1.65 pence per Ordinary
Share exercisable for a period of 3
years from Admission.
The Warrants will not be admitted to
trading on AIM or any other stock market. The issuance of
the warrants is
subject to Admission.
Suspension and annual
report
As announced on 28 December 2023,
the Company's shares have been suspended from trading on AIM
pending completion of an ongoing funding event and release of the
Company's financial statements for the year
end 30 June 2023. It is anticipated that
the Company's delayed financial statements will be announced
on 29 January 2024.
Further updates on the lifting of
the suspension of trading in the Company's shares will be given in
due course.
This announcement contains inside
information as defined in Article 7 of the EU Market Abuse
Regulation No 596/2014 and has been announced in accordance with
the Company's obligations under Article 17 of that
Regulation.
For
further information:
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GCM
Resources plc
Keith Fulton
Finance Director
+44 (0) 20 7290 1630
|
WH
Ireland Ltd
James Joyce
James Bavister
Andrew De Andrade
+44 (0) 20 7220 1666
|
Allenby Capital Ltd
Kelly Gardiner
Nick Athanas / Lauren
Wright
+44 (0) 20 3328 5656
|
|
GCM Resources plc
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|
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Tel: +44 (0) 20 7290 1630
|
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info@gcmplc.com;
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About GCM Resources
GCM Resources plc (LON:GCM), the AIM
listed mining and energy company, has identified a high-quality
coal resource of 572 million tonnes (JORC 2004 compliant) at the
Phulbari Coal and Power Project (the "Project") in north-west
Bangladesh.
Utilising the latest highly energy
efficient power generating technology the Phulbari coal mine can
support some 6,600MW. GCM requires approval from the Government of
Bangladesh in order to develop the Project. The Company has a
strategy of linking the Company's mine proposal to supplying coal
to the Government of Bangladesh's existing and in the pipeline
coal-fired power plants and / or power plants developed development
partners. Together with credible, internationally recognised
strategic development partners, GCM aims to deliver a practical
power solution to provide the cheapest coal-fired electricity in
the country, in a manner amenable to the Government of
Bangladesh.
