23 Feb 2018 11:45
BMR Group PLC
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("BMR", the "Group" or the "Company")
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Star Zinc and Kabwe update
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This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
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Star Zinc
Pursuant to its announcement on 5 September 2017 the Board announces that BMR yesterday made the final payment due to Bushbuck Resources Limited ("Bushbuck") to complete the acquisition of the Large Scale Prospecting Licence 19653 - HQ - LPL ("Star Zinc").
Bushbuck has therefore no longer any charge over either (i) the removable assets of BMR's wholly-owned subsidiary, Enviro Processing Limited, which owns all of the assets at Kabwe, BMR's principal operations, bar the property, or (ii) $570,000 of new ordinary shares of BMR at a discount of 25% to the prevailing market price.
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Galileo Resources PLC ("Galileo") has fulfilled its obligation to undertake a $250,000 work programme (in respect of which it placed $100,000 in escrow) as a result of which it is entitled, upon regulatory approval in Zambia, to increase its aggregate equity interest in Star Zinc to 85%.
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BMR has determined not to exercise its right to reduce the interest of Galileo in Star Zinc from 85% to 75%. Accordingly the $100,000 placed in escrow by Galileo will be released to the Company.
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Kabwe
Following meetings between the Company and directors of the Zambian Mining Ministry and Mining Cadastre, preparation of the Company's appeal against the notice of cancellation, announced on 7 February 2018, taking into account recommendations of officials of the aforementioned Zambian entities, is well advanced and the formal appeal is expected to be submitted by no later than 2 March 2018.
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For further information:
BMR Group PLCAlex Borrelli, CEO and Chairman  | 020 7734 7282 |
WH Ireland Limited (NOMAD and Joint Broker)Chris Fielding, Managing Director, Corporate FinanceAlex Bond, Executive  | 020 7220 1666 |
Peterhouse Corporate Finance (Joint Broker) Lucy WilliamsDuncan VaseyHeena Karani | 020 7469 0930 |
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