Baobab Resources Plc : Strategic Investment of £4,000,000
07/06/2012| 03:23am US/Eastern
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STRATEGIC INVESTMENT OF £4,000,000
6 JULY 2012
Baobab Resources plc ('Baobab' or the 'Company'), the iron,
base and precious metals explorer with a portfolio of mineral
projects in Mozambique, is pleased to announce a placing of
50,000,000 ordinary shares ('Ordinary Shares') in the Company
(the 'Placing Shares') at a price of 8p, raising £4,000,000
before expenses (the 'Placing').
The Company has entered into an equity subscription agreement
with Redbird Investments Ltd. ('Redbird'), a fully owned
investment vehicle of African Minerals Exploration &
Development SICAR SCA ('the Fund'). Under this agreement,
Redbird has agreed to subscribe for 50,000,000 Ordinary
Shares at 8p per share to raise
£4,000,000 and has been granted 25,000,000 warrants over
Ordinary Shares that are exercisable at 12p per share up to 6
July 2013 which, if exercised, would bring the total
investment up to £7 million.
BAOBAB RESOURCES Plc
27/28 Eastcastle Street London W1W 8DH United Kingdom
BAOBAB MINING SERVICES Pty Ltd Unit 25 South Terrace
Piazza Fremantle
Western Australia 6160
Australia
Post: PO Box 1229 Fremantle Western Australia 6959 Australia
Tel: (+61) 8 9430 7151
Fax: (+61) 8 9430 7664
Web:
www.baobabresources.com
AIM : BAO
As part of this Placing, under certain ancillary agreements,
the Fund will appoint a nominee to the Board of Baobab (which
will occur following completion of necessary procedures) and
has the right to appoint a further nominee upon exercise of
the warrants.
African Minerals Exploration & Development SICAR SCA is a
recently launched Luxembourg based fund that is actively
investing in brownfield mineral projects, predominantly in
Africa. The Fund counts among its founding partners David
Twist and Rudolph de Bruin, who have a proven track record of
bringing large scale African projects into production.
Funds raised will be used by the Company primarily for the
completion of the pre-feasibility study (PFS) on its highly
prospective Tete Project and to provide on-going working
capital for the Company. Drilling on the Ruoni Flats (see RNS
dated 24 May 2012), where a 120Mt to 260Mt Exploration Target
has been estimated by consultant Coffey Mining, has continued
to intersect a thick, heavily mineralised package and the
Company looks forward to presenting the drill hole analytical
results as they become available.
Application will be made to the London Stock Exchange for the
Placing Shares to be admitted to trading on AIM and it is
expected that Admission will become effective and that
trading will commence on 12 July 2012. These shares will rank
pari passu in all respects with the existing issued Ordinary
Shares in the Company. The total issued share capital of
Baobab following this allotment will be 264,137,900 Ordinary
Shares and Redbird will have a relevant interest representing
18.93% of the Company's total voting rights.
Commenting today, Jeremy Dowler, Baobab's Chairman, said:
"the Company is very pleased to welcome the Fund on board and
we look forward to working with them to build Baobab into a
successful pig iron producer. The African Minerals
Exploration & Development investment brings with it not just
the assurance of full-funding beyond the conclusion of the
PFS, but also an exceptional depth of experience in the
mining finance space, specifically in Africa."
AIM ANNOUNCEMENT | 6 JULY 2012 Page 1 of 2
CONTACT DETAILS
Baobab Resources PLC
Ben James: Managing Director Tel: +61 8 9430 7151
Jeremy Dowler: Chairman Tel: +44 1372 450529
Grant Thornton Corporate Finance
Gerry Beaney / David Hignell Tel: +44 20 7383 5100
Shore Capital
Jerry Keen / Toby Gibbs Tel: +44 20 7468 7964
Fortbridge Consulting
Matt Beale Tel: +44 7966 389 196
AIM ANNOUNCEMENT | 6 JULY 2012 Page 2 of 2
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