Galileo Resources Plc is pleased to announce the Company has today completed, in conjunction with Shard Capital Partners LLP ("Shard") , a placing (the "Placing") with institutional and retail investors ("the Placees") of 125,000,000 Placing Units comprising 125,000,000 ordinary shares ("Ordinary Shares") of 0.1p each (the "Placing Shares") at a placing price of 0.40 p (the "Placing Price") per Placing Share to raise £500,000 before expenses subject to admission to trading on AIM ("Admission") and 125,000,000 Warrants ("Placing Warrants") to subscribe for Ordinary Shares at an exercise price of 0.60p per share. The Placing Price is at a discount of approximately 8% compared to the closing mid-market price of 0.45p yesterday. The Company intends to use the proceeds of the Placing for general working capital towards advancing its Star Zinc and Kashitu projects ("the Projects") in Zambia, including an application and related environmental and licence transfer activities for a small-scale mining permit for Star Zinc and exploration on Kashitu.
In connection with the Placing, the Company has also granted 3,750,000 warrants to Shard ("Brokers Warrants") to subscribe for Ordinary Shares at an exercise price of 0.60p per share. The Brokers Warrants and the Placing Warrants may be exercised at any time in the period expiring on the second anniversary of Admission of the Placing Shares.
As part of the Placing, Colin Bird, the Company's Chairman, and Richard Wollenberg, the Company's Non-Executive Director, have respectively subscribed for 5,000,000 and 500,000 Placing Units. Accordingly, Colin Bird will hold 60,435,000 Ordinary Shares representing 10.83% of Galileo's enlarged issued share capital and Richard Wollenberg will hold 7,221,341 Ordinary Shares representing 1.29% of Galileo's enlarged issued share capital following the Placing.
The Placing Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares. Application will be made for the Placing Shares to be admitted to trading on AIM and admission is expected to take place on or around 1 November 2019.
Following the issue of the Placing Shares, the Company's issued share capital will total 557,811,947 ordinary Shares, with voting rights. Shareholders in the Company may use this figure as the denominator for the calculation, by which they would determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014. You can also follow Galileo on Twitter: @GalileoResource
For further information, please contact: Galileo Resources PLC
Colin Bird, Chairman
Andrew Sarosi, Executive Director
Tel +44 (0) 20 7581 4477
Tel +44 (0) 1752 221937
Beaumont Cornish Limited - Nomad
Roland Cornish/James Biddle
Tel +44 (0) 20 7628 3396
Novum Securities Limited - Joint Broker
Colin Rowbury/Jon Belliss
Tel +44 (0) 20 7399 9400
Shard Capital Partners LLP - Joint Broker
Tel +44 (0) 207 186 9952
This information is provided by RNS
The company news service from the London Stock Exchange
The following information relating to the transaction has been filed with the FCA in accordance with Article 19(1) of the Market Abuse Regulation,
Details of the person discharging managerial responsibilities / person closely associated
Description of the financial instrument, type ofinstrument
Ordinary shares of 0.1 pence each in Galileo Resources plc
Warrants to subscribe for Ordinary Shares
Nature of the transaction
Purchase of new ordinary shares and associated Warrants as described above
Price(s) and volumes(s)
Date of the transaction
Xxx October 2019
Place of the transaction
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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