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BMR Group PLC (BMR)

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Friday 23 February, 2018

BMR Group PLC

Star Zinc and Kabwe update

RNS Number : 7997F
BMR Group PLC
23 February 2018
 

BMR Group PLC

 

("BMR", the "Group" or the "Company")

 

Star Zinc and Kabwe update

 

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

 

Star Zinc

Pursuant to its announcement on 5 September 2017 the Board announces that BMR yesterday made the final payment due to Bushbuck Resources Limited ("Bushbuck") to complete the acquisition of the Large Scale Prospecting Licence 19653 - HQ - LPL ("Star Zinc").

                              

Bushbuck has therefore no longer any charge over either (i) the removable assets of BMR's wholly-owned subsidiary, Enviro Processing Limited, which owns all of the assets at Kabwe, BMR's principal operations, bar the property, or (ii) $570,000 of new ordinary shares of BMR at a discount of 25% to the prevailing market price.

 

Galileo Resources PLC ("Galileo") has fulfilled its obligation to undertake a $250,000 work programme (in respect of which it placed $100,000 in escrow) as a result of which it is entitled, upon regulatory approval in Zambia, to increase its aggregate equity interest in Star Zinc to 85%.

 

BMR has determined not to exercise its right to reduce the interest of Galileo in Star Zinc from 85% to 75%. Accordingly the $100,000 placed in escrow by Galileo will be released to the Company.

 

Kabwe

Following meetings between the Company and directors of the Zambian Mining Ministry and Mining Cadastre, preparation of the Company's appeal against the notice of cancellation, announced on 7 February 2018, taking into account recommendations of officials of the aforementioned Zambian entities, is well advanced and the formal appeal is expected to be submitted by no later than 2 March 2018.

 

For further information:

BMR Group PLC
Alex Borrelli, CEO and Chairman

 

020 7734 7282

WH Ireland Limited (NOMAD and Joint Broker)
Chris Fielding, Managing Director, Corporate Finance
Alex Bond, Executive

 

020 7220 1666

Peterhouse Corporate Finance (Joint Broker)       
Lucy Williams
Duncan Vasey
Heena Karani                      

020 7469 0930

 


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