Thalassa Holdings: Papua Mining shares placing




Papua Mining shares placing

Papua Mining (LON: PML), the natural resource exploration company, is pleased to announce a proposed strategic acquisition of precious and base metal interests in Australia.


–     Conditional acquisition of BGM, a private Australian company with three projects covering gold, copper, silver and zinc exploration targets in Queensland, north eastern Australia;

–     Acquisition cost of £648,000 payable through the issue of 52 million Papua shares at 1.15p per share (totaling £598,000 in shares and fixed at the mid-market price at the time the transaction was provisionally agreed) together with £50,000 cash;

–     Conditional placing to raise £1.85 million at 1.15p per share which includes the proceeds of the disposal of 40,000,000 Ordinary Shares by Thalassa Holdings Limited. The balance of £1,390,000 (before expenses) to be applied to working capital for Papua and its diversified portfolio;

–     In addition, Michael Somerset-Leeke, a director of the Company, has indicated an intention to subscribe for up to £149,500 of new shares at a price no less than the proposed placing price of 1.15p per share;

–     Proposed appointment of David Price and John Haggman, both current shareholders and directors of BGM as CEO and Technical Director respectively.  Paul Johnson becomes a new non-executive director;

–     Proposed board members to invest £118,400 in the Placing;

–     The Company intends to use the net proceeds of the Placing to carry out further exploration of the licences in Queensland and maintain the Company’s projects in PNG; and

–     Transaction subject to shareholder approval at a General Meeting. A circular and notice of General Meeting is expected to be published shortly.

Further details at: RNS Number : 0314R, Papua Mining Plc, 18 September 2017

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