Exercise of outstanding Subscription Share Rights

RNS Number : 2028H

Golden Prospect Precious Metals Ltd

02 December 2020

 

2 December 2020

GOLDEN PROSPECT PRECIOUS METALS LIMITED

(the "Company" or "GPM")

(a non-cellular company limited by shares incorporated in Guernsey with registration number 45676)

Exercise of outstanding Subscription Share Rights

Golden Prospect Precious Metals Limited (the "Company") announces that applications have been received for the exercise of 18,136,934 subscription share rights ("Subscription Share Rights"), each of which confers the right to subscribe for one ordinary share of 0.01p each ("Ordinary Shares") at a price of 46.14p (the "Subscription Price") per share on 30 November 2020 (the "Subscription Date").

Accordingly, the Company announces that it will be issuing and allotting 18,136,934 Ordinary Shares, subject to admission to trading.  Application will be made for the new Ordinary Shares to be admitted to trading on The International Stock Exchange ("TISE") and to trading on the London Stock Exchange's SETSqx platform. It is expected that dealings will commence at 8.00 a.m. on 8 December 2020.

Total Voting Rights

For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules ("DTRs"), following Admission the issued ordinary share capital of the Company will consist of 75,166,239 Ordinary Shares with voting rights attached.  The Company does not hold any shares in treasury.  This figure of 75,166,239 may be used by the Company's shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in the share capital of the Company under the DTRs.

Outstanding Subscription Share Rights

Following this exercise, 10,336,782 Subscription Shares Rights remain unexercised.  In accordance with the terms and conditions on which the Subscription Shares were issued, the Company has appointed a trustee (the "Subscription Trustee").

If the Subscription Trustee is of the opinion, having consulted finnCap Limited ("finnCap"), that the net proceeds of sale of the Ordinary Shares arising on exercise of the outstanding Subscription Share Rights (after deduction of all costs and expenses incurred by, and any fee due to, the Subscription Trustee) will exceed the aggregate costs of subscription, the Subscription Trustee will exercise either (i) all the Subscription Share Rights which have not been exercised or (ii) at the Subscription Trustee's discretion such number of Subscription Share Rights as will, in the Subscription Trustee's opinion, result in the Ordinary Shares arising from such exercise being sold in the market for such net proceeds as will exceed the costs of exercising such Subscription Share Rights and the costs and expenses of sale.

It is intended that the full number of Ordinary Shares that would arise from the exercise of the outstanding Subscription Share Rights (the "Rump") will be sold by finnCap by way of a secondary market placing executed at the maximum available, single clearing price. However, the Subscription Trustee reserves its absolute discretion to execute bargains in such sizes and prices as it deems appropriate to the interests of the outstanding Subscription Shareholders.  Qualified investors (as defined in section 86(7) of the Financial Services and Markets Act 2000 (as amended)) considering participation in the secondary market placing are advised to contact finnCap as soon as practicable.  Orders for the placing should state the number of shares to be purchased and the maximum purchase price (or confirm that the investor is willing to trade "at strike").  Investors placing orders should note that if the full extent of the Rump is not covered, then a bargain is expected to be executed at the maximum available, single clearing price for the actual size of the book.  The decision to sell Ordinary Shares to any qualified investor shall be at the absolute discretion of finnCap (after consultation with the Company's investment manager).

If the Subscription Trustee is of the opinion that the gross proceeds of sale of the Ordinary Shares by the Subscription Trustee are likely to exceed the costs of subscription but the excess is not sufficient to meet the costs and expenses incurred by the Subscription Trustee, the Board intends that part or all of such costs and expenses will be borne by the Company, provided that at that time the Board believes this to be in the best interests of the Company and Shareholders as a whole.

The Subscription Trustee will distribute the proceeds of any sale (less any related subscription costs and other costs and expenses) pro rata to the persons entitled thereto, provided that entitlements of under £5.00 shall be retained for the benefit of the Company.

If any or all of the outstanding Subscription Share Rights are not exercised by 14 December 2020, all such Subscription Share Rights will lapse with nil value.

Admission to trading on TISE and dealings on LSE SETSqx of the Subscription Shares has been cancelled.

The information contained within this RNS is considered to be inside information prior to its release.

For more information please contact:

CQS (UK) LLP

Craig Cleland           020 7201 5368

finnCap Limited

Corporate Finance:

William Marle / Giles Rolls  020 7220 0500

Sales:

Mark Whitfeld / Pauline Tribe                                                                                                     020 7220 0500

Maitland Administration (Guernsey) Limited

Elaine Smeja                                                                                                                                   01481 749364

 

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