FinnAust Mining plc, the AIM listed exploration company with projects in Greenland, Finland and Austria, has told DirectorsTalk that it has raised GBP1 million via the issue of 50,000,000 new ordinary shares of 0.01 pence each in the capital of the Company at a placing price of 2 pence per ordinary share to both new and existing shareholders.
The Company is focused on defining the broader development scenario for the Pituffik Titanium Project in Greenland as it targets an initial 30,000 tonne proof-of-concept bulk-sampling programme in 2017. To achieve this goal, FinnAust is working with its recently appointed consultants to plan and implement a 2016 work programme, further details of which will be provided in the short term.
FinnAust CEO Roderick McIllree said, “We are delighted that our investors share our view that Pituffik represents a simple yet high grade, low cost development opportunity and we are pleased with the strong support our strategy has received. Approximately half of the amount raised came from existing shareholders with the balance from new investors. FinnAust’s strategy is to capitalise on Pituffik’s near term production potential and with management all significant shareholders, thereby aligning interests with shareholders, it is reasonable to expect a continued measured focus on minimising dilution and discounted pricing as can be seen today. This placing complements the GBP200,000 investment committed by major shareholder Western Areas Limited and the current management team, which was also at a placing price of 2 pence and was part of the acquisition of a 60% interest in Bluejay Mining Limited in December 2015, so shareholders can feel comfortable that everyone is moving forward together.
“The positive results from the bathymetry (depth) and seismic profiling survey and extensive sampling programme at Pituffik have demonstrated that the shallow marine environment hosts very large volumes of potentially high grade titanium, and 2016 will see us conduct further exploration to more fully understand this area so that we may progress our plan to deliver cash flows through low cost production in the short to medium term.”
Details of the Placing
The majority of the proceeds of the Placing will be applied to the advancement of the Pituffik Titanium Project in Greenland.
Application will be made for the Placing Shares, which will rank pari passu with the existing ordinary shares of 0.01 pence each in the Company (‘Ordinary Shares’), to be admitted to trading on AIM (‘Admission’). It is expected that Admission will become effective and dealings will commence on or around 9 March 2016.
Further issue of equity
FinnAust is making an application for a further 4,032,316 Ordinary Shares to be admitted to trading on AIM. These Ordinary Shares are being issued to certain professional advisors of the Company in satisfaction of fees outstanding. It is expected that admission will occur, and dealings in these further shares will commence on or around 9 March 2016. These shares will rank pari passu in all respects with the Company’s existing Ordinary Shares.
In addition the Company has today granted options over Ordinary Shares to advisers to the Company. The details of the options are as follows:
— Tranche 1: 1 million options with an exercise price of 2 pence, valid for 12 months from the date of grant;
— Tranche 2: 1 million options with an exercise price of 4 pence, valid for 24 months from the date of grant; and
— Tranche 3: 1 million options with an exercise price of 6 pence, valid for 36 months from the date of grant.
