Last checked at 25 Nov 2021 07:00
25 November 2021
Gold Demerger Update
Ricca Resources Limited
Offer Information Statement to be Dispatched
As set out in Atlantic Lithium Limited's (AIM: ALL, "Atlantic" or the "Company") announcement on 18 November 2021, shareholders have approved the capital reduction and in-specie distribution of shares held by the Company in Ricca Resources Limited ("Ricca Resources") to facilitate the demerger of the Company's gold assets.
The Offer Information Statement ("OIS") for a non-renounceable pro rata rights issue offer of Ricca Resources (the "Ricca Rights Issue" or "Priority Offer") to be dispatched to eligible Atlantic shareholders today.
HIGHLIGHTS:
Ø Shareholders approved the capital reduction and in-specie distribution to facilitate the gold demerger at the AGM held on 18 November 2021.
Ø The Offer Information Statement in respect of the Priority Offer to raise up to A$7.2m (which is fully underwritten by Canaccord Genuity Australia Limited) to be dispatched to eligible shareholders today.
Ø Ministerial approval received from Chad for the transfer of the Chadian gold tenements to Ricca Resources.
Ø The demerger timeline for completion remains unchanged with a proposed completion date of 22 December 2021.
Ø Atlantic to provide Ricca Resources with initial start-up capital of A$7m.
Ø Post demerger, Ricca Resources will have a cash balance of approximately A$14.2m before costs.
The offer information statement can be found https://www.atlanticlithium.com.au/Ricca OIS
Ricca Resources' website can be found at www.riccaresources.com.au.
The Ricca Resources' presentation can also be found at www.riccaresources.com.au/presentations.
Shareholder Approval Received
Atlantic (formerly IronRidge Resources Limited) received shareholder approval for the capital reduction and in-specie distribution to facilitate the demerger of gold assets into Ricca Resources at the Company's AGM held on 18 November 2021 (refer RNS of 18 November 2021).
Offer Information Statement
Ricca Resources lodged the Offer Information Statement with the Australian Securities and Investments Commission on 17 November 2021. The Priority Offer offered under the OIS seeks to raise A$7.2m (before costs) and is fully underwritten by Canaccord Genuity Australia Limited ("CGAL").
The OIS will be dispatched to eligible ALL shareholders who were on Company's share register on 23 November 2021 (Entitlement Offer Record Date) and reside in an eligible country.
The Priority Offer invites eligible Atlantic shareholders to participate in the Ricca Resources Rights Issue to raise A$7.2m at an issue price A$0.10 cents per Ricca Resources share, on the basis of 1 new share in Ricca Resources for every 8 ALL shares held by eligible ALL shareholders (with entitlements being determined on the Entitlement Offer Record Date).
Following the implementation of the proposed demerger, and assuming full subscription under the proposed Rights Issue, Ricca Resources will have a closing cash balance of approximately A$14.2m (before costs) with an enlarged issued share capital of 143,436,062 Shares ("Ricca Shares").
Demerger and Offer Information Statement Timetable
The Ricca Resources demerger timeline for completion remains unchanged, with a proposed completion date of 22 December 2021. The key dates for the Ricca Resources Priority Offer are set out below:
Action | Date |
Entitlement Offer Record Date | 23 November 2021 |
Applications Open (Entitlement Offer Opening Date) | 25 November 2021 |
Applications Close (Entitlement Offer Closing Date) | 15 December 2021 |
Shortfall Notification Date | 17 December 2021 |
Shortfall Subscription Date | 21 December 2021 |
Allotment of New Shares under the Offer Information Statement | 22 December 2021 |
Dispatch of New Shares holding statements | 24 December 2021 |
Note: The dates shown in the table above are indicative only and may be changed at the discretion of the Directors, subject to the Corporations Act, the AIM Rules, and other applicable laws. Details of the new times and dates will be notified to Shareholders by announcement through a Regulatory Information Service.
The Gold Demerger
The full details of the demerger and resolution put to the Company's shareholders are set out in the Notice of Meeting and Explanatory Memorandum, dated, and announced on 26 October 2021. Shareholders approved the demerger at the Company's AGM held and as announced on 18 November 2021.
For any further information, please contact:
Atlantic Lithium Limited Vincent Mascolo (Chief Executive Officer) Amanda Harsas (Company Secretary) www.atlanticlithium.com.au | Tel: +61 2 8072 0640 | ||
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SP Angel Corporate Finance LLP Nominated Adviser Jeff Keating Charlie Bouverat
| Tel: +44 (0)20 3470 0470 | ||
Canaccord Genuity Limited Joint Company Broker Raj Khatri James Asensio Harry Rees | Tel: +44 (0) 20 7523 4500
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Liberum Capital Limited Joint Company Broker Scott Matheson Edward Thomas Kane Collings |
Tel: +44 (0) 20 3100 2000
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SI Capital Limited Joint Company Broker Nick Emerson Jon Levinson |
Tel: +44 (0) 1483 413 500 Tel: +44 (0) 207 871 4038 | ||
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Yellow Jersey PR Limited Henry Wilkinson Dominic Barretto
| Tel: +44 (0)20 3004 9512 |
Notes to Editors:
About Atlantic Lithium
www.atlanticlithium.com.au
Atlantic Lithium Limited (formerly "IronRidge Resources Limited") is an AIM-listed lithium company advancing a portfolio of projects in Ghana and Côte d'Ivoire through to production.
The Company's flagship project, the Ewoyaa Project in Ghana, is a significant lithium pegmatite discovery on track to become West Africa's first lithium producing mine. The project is fully funded to production under an agreement with Piedmont Lithium for US$102m and set to produce a premium lithium product. A robust Scoping Study indicates Life of Mine revenues exceeding US$1.5bn.
Atlantic holds a 560km2 & 774km2 tenure across Ghana and Côte d'Ivoire respectively, comprising significantly under-explored, highly prospective licenses.