Issue of Equity
03 12월 2010 - 4:00PM
UK Regulatory
TIDMMVC
RNS Number : 2978X
Medavinci PLC
03 December 2010
MedaVinci plc ( "MedaVinci" or the "Company")
Placing to raise GBP1.5 million
Highlights
The Board of MedaVinci is pleased to announce that the Company has raised GBP1.5
million, before expenses, through the issue of 375,000,000 new ordinary shares
of 0.1p each ("Placing Shares") at a price of 0.4p per share (the "Placing").
The Placing is conditional on the Placing Shares being admitted to AIM
("Admission"). Application has been made for the Placing Shares to be admitted
to trading on AIM. It is expected that Admission will become effective and that
dealings in the Placing Shares will commence on 8 December 2010. Upon Admission
the Placing Shares will rank pari passu in all respects with the existing
ordinary shares in issue.
Background
In September 2010, the Company acquired 49 per cent. of the issued share capital
of Orogen Gold Limited ("Orogen Gold") for a total consideration of GBP370,000
in cash and ordinary shares, with an option to acquire the remaining 51 per
cent. within 12 months. Orogen Gold was formed to hold investments in companies
involved in mineral exploration and related activities and is seeking to explore
and develop gold deposits in Europe.
The Initial focus is on the Deli Jovan Gold Project, a 69 sq km permit-area in
eastern Serbia covering two historical shallow underground gold mines (the
Rusman and Gindusa Mines), that were last in production pre World War II, and
over which Orogen Gold has an Earn-in Agreement. Under the Earn-in Agreement
Orogen Gold has the right to an initial interest of 55 per cent. in the Deli
Jovan Gold Project if it spends a minimum of C$1.5 million (GBP945,000) on
exploration by 20 June 2012 and a further interest of 20 per cent. upon an
additional spend of C$2.0 million (GBP1.26 million) by 20 December 2013, giving
Orogen Gold an aggregate interest in 75 per cent. of the Deli Jovan Gold
Project.
Strategy
The initial objective of a detailed and phased Exploration Programme is to
demonstrate an initial 100,000 oz inferred gold resource at the Rusman and
Gindusa Mines which is envisaged to be sufficient to under pin two to three
years of mine production.
The initial stage Phase I Exploration Programme, which will comprise surface
trenching, re opening and re sampling three underground levels at the Rusman and
Gindusa Mines and may also include some diamond drilling. This phase will also
include reconnaissance exploration along the eight kilometre trend which
includes gold prospects at Cuka Perina and Seliste. Phase 1 works will cost
approximately GBP600,000 (C$950,000) and is expected to take 12 months. The
second stage Phase exploration programme will involve driving new underground
development with detailed channel sampling intended to confirm lateral
continuity of mineralisation. More systematic diamond drilling from the surface
is intended to confirm further lateral and depth continuity of the mineralised
structures, is expected to cost approximately GBP1.1 million (CGBP1.74 million)
and to take a further 9 months.
Contingent on success in Phase I, a Phase II Exploration Programme will commence
which will include diamond drilling and new underground development and sampling
to determine whether there are sufficient gold reserves to support an initial
two to three years of production. Once in production the intention is to fund
the blocking out of new resources from cash-flow and this will involve extending
underground headings to determine grade and drilling to establish continuity in
the lodes. It is estimated that Phase II will cost GBP1.25 million (C$1.97
million) and will take 12 months
MedaVinci's medium term strategy is to develop Deli Jovan as a revenue
generating project which will provide a base to expand into other gold project
exploration development opportunities in Europe and further east.
Placing and Use of proceeds
Under the terms of the Placing Agreement, Xcap Securities plc ("Xcap") has used
reasonable endeavours to procure subscribers for the Placing Shares and will
receive a commission on the gross funds that they have raised. In addition,
Xcap has been granted warrants over 5 million new ordinary shares exercisable
within 5 years of the date of Admission, at an exercise price of 0.4p per share.
The net proceeds of the Placing will be used to fund both stages of the
Company's Phase I Exploration Programme at the Rusman and Gindusa Mines.
Related Party Transaction
The Directors are participating in the Placing as follows:
Mr Michael Hough, director, subscribed for 25,000,000 ordinary shares in the
Company pursuant to the Placing. Following this subscription, Michael Hough is
interested in 107,500,000 ordinary shares in the Company (representing
approximately 7.94 per cent. of the issued share capital).
Mr Glyn Hirsch, director, subscribed for 7,500,000 new ordinary shares in the
Placing. Following this subscription Glyn Hirsch is interested in 90,000,000
ordinary shares (representing approximately 6.65 per cent. of the issued share
capital).
Mr Adam Reynolds, chairman, subscribed for 12,500,000 ordinary shares pursuant
to the Placing. This subscription was effected through his shareholding in
Diablo Consulting Limited, which subscribed for 25,000,000 ordinary shares, in
which he holds 50 per cent. of the issued share capital. Following this
subscription, the total shareholding of Adam Reynolds in the Company amounts to
55,500,000 ordinary shares (representing approximately 4.10 per cent. of the
issued share capital).
Mr Paul Foulger, finance director, subscribed for 12,500,000 ordinary shares
pursuant to the Placing. This subscription was effected through his shareholding
in Diablo Consulting Limited, which subscribed for 25,000,000 shares, in which
he holds 50 per cent. of the issued share capital. Following this subscription,
the total shareholding of Paul Foulger in the Company amounts to 55,500,000
ordinary shares (representing approximately 4.10 per cent. of the issued share
capital).
The Directors' participation in the Placing is a related party transaction under
the AIM Rules. The independent director of the Company being Michael Nolan, who
has consulted the Company's nominated adviser, Zeus Capital, considers the terms
of the transaction are fair and reasonable insofar as the Company's shareholders
are concerned.
Adam Reynolds, Chairman of MedaVinci plc, commented: "This is a significant step
forward for MedaVinci and the net proceeds of the Placing will be used to fund
the Phase I Exploration Programme at the Deli Jovan Gold Project".
Contact Details:
MedaVinci plc
Adam Reynolds Tel: +44 (0) 207 245 1100
Paul Foulger
Zeus Capital Limited Tel +44 (0)161 831 1512
Ross Andrews
Tom Rowley
Xcap Securities plc Tel: +44 (0)207 101 7070
Tim Burge
Karen Kelly
This information is provided by RNS
The company news service from the London Stock Exchange
END
IOEUGGAPPUPUGQP
Medavinci (LSE:MVC)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Medavinci (LSE:MVC)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024
