Result of General Meeting

RNS Number : 3144Y

Sula Iron & Gold PLC

07 September 2015

 

Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources

7 September 2015

Sula Iron and Gold plc

("Sula" or the "Company")

Result of General Meeting

Sula (AIM: SULA), a multi-commodity exploration company focussed on Sierra Leone, announces that all resolutions, as set out in the notice of General Meeting dated 20 August 2015, were duly passed at the General Meeting held earlier today.

As announced on 20 August 2015, the General Meeting was convened pursuant to the Company's intention to raise approximately £400,000 (before expenses) via a placing of 66,666,666 new ordinary shares (the "Placing Shares") at a price of 0.6p per share (the "Placing Price") (the "Placing") which was conditional, inter alia, upon Shareholders' approval and completion of a share capital reorganisation, whereby each existing share of 1 pence nominal value was to be be subdivided into one new ordinary share of 0.1 pence nominal value (the "New Ordinary Shares") and a deferred share of 0.9 pence nominal value (the "Share Capital Reorganisation"). The Placing remains conditional on Admission.

The net proceeds of the Placing will be used for general working capital purposes and put towards funding a scout drilling programme on the Company's gold exploration target at its Ferensola project (the "Exploration Target"). The Company is in its final stages of negotiations with its preferred drilling contractor and the Board now anticipates that drilling will commence in November 2015. The drill programme will assist with the future generation of a maiden JORC compliant Mineral Resource Estimate (the "JORC MRE") for the Ferensola gold project. The generation of the JORC MRE will, however, require a further drilling programme, which will be subject to the Company raising additional funds.

SRK Consulting (UK) Ltd ("SRK") has defined an Exploration Target for the Ferensola Project with a range of between 5 and 7 million tonnes grading at between 4 and 8 grams per tonne which equates to between 0.8 and 1.5 million ounces Au. The Exploration Target has been restricted to a 2km strike length segment of a regional fold belt that has a potential overall strike length in excess of 10km, and which has additional mineralisation potential to that included in the Exploration Target area. More specifically, SRK's revised geological interpretation has identified numerous potential fold hinges that could represent high grade targets. These were recognised from geophysical data and are supported by existing exploration data, evidence from grab samples and recent regolith sampling by the Company.

Application has been made to the London Stock Exchange plc for the Capital Reorganisation Shares and the Placing Shares to be admitted to trading on AIM.  Further to the resolutions being passed at today's General Meeting, admission to trading in the New Ordinary Shares (resulting from the Share Capital Reorganisation) and the Placing Shares is expected to become effective and dealings commence at 8.00 a.m. on Tuesday 8 September 2015 ("Admission"). On Admission, the Company will have in issue 423,515,260 ordinary shares with a nominal value of 0.1 pence per share.

The Company does not currently hold any ordinary shares in treasury. Accordingly, the above figure of 423,515,260 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 Financial Conduct Authority's Disclosure and Transparency Rules.

 **ENDS**

For further information please visit www.sulaironandgold.com or contact the following:

Sula Iron & Gold plc Nick Warrell / Matt Wood / Howard Baker		[phone]
Strand Hanson (Financial Adviser) Simon Raggett / James Harris/ James Dance		[phone]
VSA Capital Limited (Broker) Andrew Raca / Richard Buckle		[phone]
Daniel Stewart & Company Plc (Joint Broker from Admission) Martin Lampshire/ David Coffman		[phone]
Yellow Jersey PR (Financial PR) Dominic Barretto / Kelsey Traynor		[phone]

Notes to editors:

Sula Iron & Gold plc is a multi-commodity exploration company focussed in West Africa. The Company's main objective is to explore and advance its 153 sq. km Ferensola Project in Northern Sierra Leone, which is highly prospective for iron, gold and coltan. In December 2014, the Company achieved a corporate milestone in delivering its JORC MRE for the BIF 1 iron ore project in which total resource of 514.5Mt @ 31.8% Fe was identified including a total oxide resource of 55.5Mt @ 45.39% Fe.

 

END

 

 

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