Issue of Performance Based Securities

RNS Number : 8133D
Harvest Minerals Limited
05 February 2018
 

Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector: Mining

5 February 2018

Harvest Minerals Limited

('Harvest' or the 'Company')

               

Issue of Performance Based Securities

 

Harvest Minerals, the AIM listed fertiliser development company, is pleased to announce that it has approved an incentivisation scheme for Executive Directors and Senior Management (together, 'Management').

 

Since the Company obtained its AIM quotation in September 2015, the Company's share price has experienced a significant increase which has been driven, amongst other things, by the significant operational milestones that have been achieved towards developing the Arapua multi-nutrient potash and phosphate direct application natural fertiliser ('DANF') project in Brazil, including:

 

·     Identification of a JORC Indicated and Inferred Resource of 13.07Mt at 3.1% K2O and 2.49% P2O5

Results based on drilling just 6.7% of the known mineralisation

Resource is equivalent over 29 years' production and known mineralisation expected to support 100+ years' production at 450,000 tonnes per annum

Regional drilling programme confirming grade and thickness continuity

·     Excellent results from various independent agronomic tests of its KPfértil DANF product

·     First sales with coffee growers, orchard and broad acre crop farmers

·     Modular processing plant fabricated and installed, completing low-cost production chain

·     Application made to MAPA to register KPfértil as a mineraliser product

 

There is no incentive scheme currently in place for Management and therefore in order to further improve the alignment of the interests of Management with those of the Company's shareholders, the Non-Executive Directors have resolved to issue the following performance based securities ('Performance Shares'):

 

Name

Position

Number of Performance Shares to be granted

Brian McMaster

Executive Chairman

2,000,000

Luiz Azevedo

Executive Director

2,000,000

Mark Heyhoe

Chief Operating Officer

1,000,000

Luis Clerot

Project Manager

1,000,000

 

The Performance Shares will be issued for nil consideration in four equal tranches, subject to the achievement of the following performance conditions:

 

Tranche

Performance Condition

1

Milestones achieved in the period from September 2015 to December 2017

2

Receipt of MAPA certification

3

Total sales of 30,000 tonnes or more

4

Receipt of full mining licence

 

As the performance condition for the issue of the Tranche 1 Performance Shares has been met, the Company has issued, in aggregate, 1.5 million new Ordinary Shares to Management as follows:

 

Name

Number of Tranche 1 Performance Shares issued

Resultant Ordinary Share holding in the Company

Brian McMaster

500,000

2,080,834

Luiz Azevedo

500,000

510,000

Mark Heyhoe

250,000

250,000

Luis Clerot

250,000

250,000

 

Related Party Transaction

 

The issue of the Performance Shares to Management is deemed a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The directors independent of the award of the Performance Shares (being the Non-Executive Directors of the Company) consider, having consulted with the Company's nominated adviser, that the terms of the award are fair and reasonable insofar as Shareholders of the Company are concerned.

 

Admission to Trading and Total Voting Rights

 

The Tranche 1 Performance Shares rank pari passu with the Company's existing Ordinary Shares.  Application has been made for the Tranche 1 Performance Shares to be admitted to trading on AIM ('Admission').  It is expected that Admission will become effective and dealings in the Tranche 1 Performance Shares will commence on or around 8 February 2018.

 

Following the issue of the Tranche 1 Performance Shares, the total issued share capital of the Company consists of 130,338,589 Ordinary Shares with voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of voting rights in the Company is 130,338,589 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

ENDS

 

For further information please visit www.harvestminerals.net or contact:

 

Harvest Minerals Limited

Brian McMaster (Chairman)

Tel: +44 (0) 20 7317 6629

 

 

 

Strand Hanson Limited

(Nominated & Financial Adviser)

James Spinney

Ritchie Balmer

Tel: +44 (0)20 7409 3494

 

 

 

Shard Capital Partners

(Joint Broker)

Damon Heath

Tel: +44 (0) 20 7186 9900

 

 

 

Beaufort Securities Ltd

(Joint Broker)

Jon Belliss

Tel: +44 (0)20 7382 8300

 

 

 

St Brides Partners Ltd

Isabel de Salis

Gaby Jenner

Tel: +44 (0)20 7236 1177

 

Notes:

Harvest Minerals (HMI.L) is a Brazilian focused fertiliser producer advancing the 100% owned Arapua Fertiliser Project, which produces KPfértil, a proven, multi-nutrient, slow release, organic fertiliser and remineraliser.  KPfértil offers many economic and agronomic benefits and addresses the significant demand for locally produced fertiliser in Brazil, with its abundant agricultural land; currently, the country imports 90% of the potash it uses but has a target to be self-sufficient in fertilisers by 2020.  Covering 14,946 hectares and located in the heart of the Brazilian agriculture belt in Minas Gerais, Arapua is a shallow, low cost mine with an indicated and inferred resource of 13.07Mt at 3.1% K2O and 2.49% P2O5.  This is based on drilling just 6.7% of the known mineralisation, leaving significant upside potential. This resource is equivalent over 29 years' production and the known mineralisation expected to support 100+ years' production at 450,000 tonnes per annum.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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