Strategic Placing and Board Restructuring

RNS Number : 3945U

Greatland Gold PLC

06 April 2016

 

Greatland Gold plc

6 April 2016

Greatland Gold plc

("Greatland Gold" or the "Company")

STRATEGIC PLACING AND BOARD RESTRUCTURING

Greatland Gold plc (LON:GGP), the London Stock Exchange AIM listed precious and base metals exploration and development business is pleased to announce a placing and board restructuring.

Placing

The Company has undertaken a placing with two London listed resource investors to raise £200,000 through the issue of 200 million shares ("the Placing") at a price of 0.10p per new Greatland Gold ordinary share of 0.1p each ("Ordinary Shares") with one-for-one three year warrants with an exercise price of 0.20p.

Metal Tiger plc (LON:MTR) has agreed to invest £150,000 at 0.10p per new Ordinary Share to acquire 150 million Ordinary Shares and  Starvest plc (LON:SVE), a company of which Greatland Gold directors, Callum Baxter and John Watkins are directors, has agreed to invest £50,000 to acquire 50 million Ordinary Shares on the same basis.

Metal Tiger will receive 150 million warrants and Starvest 50 million warrants to acquire new Ordinary Shares at a price of 0.20p per Ordinary Share, exercisable at any time within 3 years from the admission to trading of the Placing shares.

Board changes

The Company announces that John Watkins has stood down as a Non-executive director with immediate effect.

The Greatland board has agreed to appoint Paul Johnson (CEO of Metal Tiger plc) and Alex Borelli (Non-executive director of Metal Tiger plc) as Non-executive directors, subject to completion of standard due diligence. A further announcement will be made in due course. Andrew Bell remains Chairman of Greatland Gold and Callum Baxter's title will change to Executive Director.

The new board of Greatland Gold will launch an immediate full strategic review covering existing exploration interests, existing pipeline opportunities as well as other advanced opportunities that may be suitable for the Greatland Gold business.

In addition, following the appointment of the new directors, it is intended to incentivise the Greatland directors with 100 million Greatland Gold options priced at 0.20p per share for 3 years, a premium of 100% to the Placing price.  It is intended that options awarded to directors will only become exercisable when the share price of Greatland Gold achieves a volume weighted average price of 0.30p for 5 trading days or more.

A further announcement will be made in due course.

Total Voting Rights

Application will be made for the 200,000,000 new Ordinary Shares to be admitted to trading, with admission expected to take place on or around 15 April 2016.  Following the issue of the new Ordinary Shares, the number of Ordinary Shares with voting rights will be 1,192,337,945.  There are no shares held in treasury.  The above number may be used by 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, Greatland Gold under the FCA's Disclosure and Transparency Rules.

Holdings in the Company

Following the issue of the new Ordinary Shares, Metal Tiger plc and Starvest plc will have the following holdings:

	Number of shares issued	Resultant holding	Percentage
Metal Tiger plc	150,000,000	150,000,000	12.6%
Starvest plc	50,000,000	85,333,333	7.2%

Paul Johnson and his spouse  hold 54,406,636 Ordinary Shares, representing 4.56 per cent  of the Company following completion of the Placing.

Andrew Bell, Chairman of Greatland Gold commented "My first duty is to thank John Watkins for his diligent and reliable support to the Company over a long period of service and notably in recent years when directors of listed resource companies have been severely tested by the stormy conditions in the market.  John helped Greatland Gold to prevail and we are very grateful for that support.

We welcome the appointment of our two proposed directors, Paul Johnson and Alex Borelli. Metal Tiger plc is a company that has seen its share price rise from 0.50p in mid-2014 when Metal Tiger plc was created, up to 5.5p a share recently.  That is a 1,000% share price return for investors in a resource investing company over one of the worst resource bear markets in recent history.

We look forward to the contribution that Paul Johnson and Alex Borelli will make to the Company."

 

END

 

 

IOEEADLKEAXKEFF