W Resources Plc (AIM:WRES), a tungsten, copper and gold mining, exploration and development company, has completed a placement of 166,666,664 ordinary shares of 0.1p per share at 0.45p per Ordinary Share to raise approximately GBP750,000 before expenses.
Application has been made for the new Ordinary Shares being issued in connection with the Placing to be admitted to trading on AIM which is expected to occur on or around 17 March 2016. The funds raised will be used for the mine and plant engineering at La Parrilla and Régua, resource estimation at São Martinho and general working capital.
Related Party Transaction
The placees include Symmall Pty Limited as trustee of the Masterman Superannuation Fund of which Mr. Michael Masterman (a director of the Company) is both a beneficiary and trustee, which has subscribed for 16,666,666 Ordinary Shares amounting to GBP75,000 and Mr. David Garland (a director of the Company) who has subscribed for 5,555,555 Ordinary Shares amounting to GBP25,000.
The participation in the Placing of Mr. Masterman and Mr. David Garland falls to be treated as a related party transaction under AIM Rule 13. The independent director, being Dr. Pirola, having consulted with Grant Thornton UK LLP (the Company’s nominated adviser), confirms that he is satisfied that the terms of Mr. Masterman and Mr. Garland’s participation in the Placing are fair and reasonable insofar as the Company’s shareholders are concerned.
Following the issue of all new Ordinary Shares, the Company will have 3,860,604,157 Ordinary Shares in issue and:
– Mr. Michael Masterman (and related parties) will be interested in 945,882,501 Ordinary Shares in the Company, representing 24.50 per cent of the Company’s total voting rights; and
– Mr. David Garland will be interested in 5,555,555 Ordinary Shares in the Company, representing an interest of 0.14 per cent in the total voting rights.
Following admission of the new Ordinary Shares, the Company’s enlarged issued share capital will comprise 3,860,604,157 Ordinary Shares with voting rights. The Company has no shares held in Treasury. This figure of 3,860,604,157 Ordinary Shares 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.
