28 Oct 2015 18:00
BMR Mining PLC
("BMR" or the "Company")
Placing to raise GBP 750,000
BMR Mining PLC, the Zambian-focused mineral processing business, is pleased to announce that it has raised GBP 750,000 before expenses, by way of a placing of 18,750,000 new ordinary shares of £0.01 (1p) each in the capital of the Company (the "Placing Shares") at 4.0p per share. Each placee will also receive for each share subscribed a warrant to subscribe for a further new ordinary share at 7.0p per share in the 42 days following publication of BMR's results for the year ending 30 June 2016.
Furthermore, the Board confirms that 66.67% of the placing, representing 12,500,000 new shares or 8.29% of the enlarged issued share capital, has been subscribed by Lexinta Group, an asset management firm headquartered in Switzerland.
The Board has refined BMR's strategy such that it now intends to generate sufficient revenue from tailings processed by the pilot plant to finance the proposed main plant at Kabwe in Zambia. Whilst the final costings of the plant have yet to be completed, it is intended that it will be engineered to run at 5 tonnes per hour and to produce an expanded range of higher grade produce to enhance revenue. The net proceeds of the placing will therefore be used to part finance the pilot plant and provide working capital as BMR progresses its plans to commence processing.
The Board is pleased to report that BMR has reduced its normalised monthly central costs from approximately £250,000 in the year ended 30 June 2014, to approximately £110,000 currently, and that such costs are projected to fall to approximately £65,000 by January 2016 once BMR has exited from the lease of its former head office in Derby Street, London W1J 7AD.
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 trading will commence on 3 November 2015. The Placing Shares will rank pari passu with the existing ordinary shares of the Company.
Following the admission of the Placing Shares to trading on AIM, the Company will have a total of 150,715,452 shares in issue. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.
Alex Borrelli, Chairman, commented: "This placing provides BMR with the necessary funds to commence revenue generating pilot plant operations at Kabwe. Our objective is to utilise these revenues to finance the proposed main plant.
As I have previously committed to shareholders, we will make a similar amount of new shares available to shareholders on the same terms, including warrants, in the near future."
Bismark Badilla, CEO and Chairman of the Lexinta Group, commented: "We are delighted to be the principal investor in BMR Mining's placing and to contribute as corporate advisors, especially at this time as the Company embarks on this direction."
Ends
For further information:
BMR Mining PLC 020 7734 6252
Alex Borrelli, CEO and Chairman
WH Ireland Limited 020 7220 1666
Chris Fielding, Head of Corporate Finance