Reabold Resources Regulatory News (RBD)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR"). IN ADDITION, MARKET SOUNDINGS (AS DEFINED IN MAR) WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION AS PERMITTED BY MAR. THAT INSIDE INFORMATION IS SET OUT IN THIS ANNOUNCEMENT AND HAS BEEN DISCLOSED AS SOON AS POSSIBLE IN ACCORDANCE WITH PARAGRAPH 7 OF ARTICLE 17 OF MAR. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION IN RELATION TO THE COMPANY AND ITS SECURITIES

REABOLD RESOURCES PLC

"Reabold" or the "Company"

Investment into Advanced Lithium-Tin Project in Spain.

Proposed Capital Raising of £ 367,500.

Reabold Resources Plc (LSE AIM:RBD) is pleased to announce that it has entered into an agreement to buy an initial interest in the advanced San Jose Lithium-Tin Project in Spain ("Investment") for a consideration of A$500,000 (approx. £300,000). The San Jose Project ("Project") is a Joint Venture between Plymouth Minerals Limited's ("Plymouth" ASX:PLH) subsidiary Tonsley Mining Pty Limited ("Tonsley") and Sacyr, S.A,, the IBEX 35 Spanish listed multinational infrastructures and services company. This investment is in line with Reabold's strategy to identify strategic mineral opportunities with the potential to add significant shareholder value.

To fund the Investment and for working capital purposes, the Company is proposing to arrange subscriptions totaling £367,500 for 73,500,000 new Ordinary Shares of 0.1p each ("Subscription Shares") at a price of 0.5p per share (the "Subscription") conditional on Admission to trading on AIM.

Highlights - San Jose Lithium/Tin Project:

· Plymouth has announced high-grade historic and current drilling intercepts including;

o 142m @ 1.2% Li2O from 67m

o 68m @ 1.1% Li2O from 91m

o 52m @ 1.1% Li2O from 18m

o 45m @ 1.0% Li2O from surface

o 34m @ 1.3% Li2O from 103m

o 250m @ 1.0% Li2O from surface

· Plymouth has also reported in excess of 1.1 million tonnes of LCE resource (Non JORC 2012). Updated JORC compliant resource expected May 2017 (including recent drilling).

· Exceptional metallurgy results - 97% lithium recovery achieved in first stage metallurgical testwork, using well understood sulphuric acid processing routes.

· Mineralogy confirms ore amenable to simple beneficiation as per previous historical feasibility study.

· Deposit is open at depth and along strike.

· Reabold is investing AUD $500,000 (approx. £300,000) for a 2.0% interest in Tonsley. £367,500 is proposed to be raised by subscriptions to fund the investment and for working capital purposes.

· Tonsley has the right to earn a 75% interest by spending €1.5 million for a first stage 50%, then €2.5 million for the additional 25%, which is being funded by Plymouth in the San Jose Lithium-Tin Project.

Jeremy Edelman, Reabold's Chairman, commented.

"With the current dynamics surrounding the fast growing European lithium market, the Company sees tremendous opportunity in this rapidly developing San Jose Lithium-Tin Project together with the Project's development partners as they continue to add quantum steps of value to the project through their experienced personnel and professional operational skills. We see the San Jose Lithium-Tin Project as a potential company making investment going forward. The Company and Plymouth Minerals Limited, the majority owners of Tonsley, will be discussing future opportunities between them on ways to co-operate on potentially increasing Reabold's corporate and operational involvement in this exciting San Jose Lithium-Tin project."

Further Information:

About the San Jose Lithium-Tin Project, Spain:

Historically the Spanish Mining Company, Tolsa SA, conducted an extensive feasibility study at San Jose from 1985-1991. This included 8,400m of Reverse Circulation (RC) and diamond drilling. A resource (Not JORC 2012) was estimated and on the basis of this, mining and processing studies were undertaken. The deposit is open to the north, west and at depth and there is significant upside in the tonnage, although the most current (Non JORC 2012) estimate contains greater than 1.1 million tonnes of lithium carbonate equivalent. Source: PLH website

Drilling confirms San Jose is a globally significant lithium deposit with potential to be significantly enlarged. The deepest hole drilled by Tolsa, hole number SJ-1A, which reached 391.5m down-hole and significantly to illustrate the size and scale of the deposit ended with a significant intercept of 6.5m @ 1.62% Li2O from 386m. The deepest diamond hole drilled by Plymouth, MSJ-DD-003 on section 4 reached 250m down-hole reported 250m @ 1.0% Li2O and ended in significant grade of 1.08% Li2O. Source: PLH ASX announcement 29th March 2017

A ten hole drilling program was completed at the end of March 2017 at the San Jose Lithium-Tin project. Lithium mineralisation is open along strike and at depth with the deepest intercept (ending in mineralisation) 6.5m@ 1.6% Li2O . Source: PLH ASX announcement 29th March 2017

Historic and current drilling intercepts include;

o 142m @ 1.2% Li2O from 67m

o 68m @ 1.1% Li2O from 91m

o 52m @ 1.1% Li2O from 18m

o 45m @ 1.0% Li2O from surface

o 34m @ 1.3% Li2O from 103m

o 250m @ 1.0% Li2O from surface

Source: PLH ASX announcement 29th March 2017

Plymouth is fast tracking JORC resource calculations with leading industry consultant, Snowden Group. A Maiden JORC Resource statement is expected in Q2 2017.Results highlight the outcropping nature of Lithium mineralisation and amenability to a bulk tonnage open pit. Source: PLH ASX announcement 12th April 2017

The lithium is hosted in phengite-muscovite (mica) which has shown excellent sulphuric acid-leach recoveries to a lithium carbonate product. A common misunderstanding of this this kind of mica hosted lithium deposit is to compare the grades of a deposit like this one to one of spodumene mineralisation. The different mineralisation changes the metallurgy and therefore the process flowsheet. San Jose Lithium project has historically shown to recover to a lithium carbonate, which sells at a substantial premium to spodumene concentrates. From this perspective, San Jose is more akin to a high grade brine operation than a spodumene mine. Source: Hartleys Analyst report 2nd March 2017 http://www.plymouthminerals.com/i/dmsdocument/282

The quality of the historical data, in conjunction with the positive results being achieved in field programs, now position fast-track economic studies and a Mining Lease Application at the San Jose Lithium Project. Source: PLH ASX announcement 6th April 2017

Tonsley's Joint Venture partner in the San Jose Lithium project is Sacyr S.A., one of Spain's biggest companies, an IBEX 35 stock exchange listed company, with a market capitalisation of over €1 billion. Sacyr is a multinational infrastructure and services company. Its focus on innovation and international expansion have made it a world leader in the building and management of infrastructure, industrial projects and services in 29 countries. SACYR S.A. website. A summary of the Joint Venture and Earn In terms between Tonsley and Sacyr's wholly owned subsidiary, Valoriza Mineria, are in Schedule 1 following.

In addition to the San Jose Lithium-Tin project Tonsley is the 80 percent owner of the Morille tungsten-tin project in Spain (Aurum Mining PLC 20%) and has leveraged off local relationships and preparatory work competed by Aurum Mining PLC between 2011 and 2013. Initial drilling in 2014 by Plymouth has returned some results, including 7m @ 1.3% WO3 from 67m (42m below surface) from the few targets drilled. Mineralisation drilled is open and many more old mines remain untested. However present operational focus for Tonsley is the San Jose Lithium-Tin project. Source PLH website

Tonsley is a special purpose vehicle and has published no Accounts.

Terms of Investment:

The Company has entered into a share subscription agreement in the amount of AUD$500,000 (approx. £300,000) to acquire a minority interest of approx. 2.0% in Tonsley, an Australian special purpose holding company which owns the rights to earn up to a 75% interest in the San Jose Lithium-Tin project in Spain, refer Schedule 1 ("Tonsley Earn-in"). After an agreed amount of time between the Parties or in the event no interest is earned by Tonsley (or its subsidiary) in the San Jose Lithium-Tin project, there is an agreed contractual mechanism (by way of options) for the AUD$500,000 funds to be returned to the Company .

The remaining shares in Tonsley are owned by Plymouth Minerals Limited (ASX:PLH), an Australian listed company. The Parties will be discussing future opportunities between them in the corporate and operational development of the San Jose Lithium-Tin project.

Further information on the Tonsley Earn-in is set out in the attached Schedule 1

Proposed Subscription:

The Company is arranging Subscriptions totaling for 73,500,000 new Ordinary Shares of 0.1p each ("Subscription Shares") at a price of 0.5p per share (the "Subscription"). The funds will be used for the Investment and for working capital purposes. The Subscription is conditional on Admission to trading on AIM.

Application will be made for the 73,500,000 new Ordinary Shares, which will rank pari passu with all existing ordinary shares, to be admitted to trading on AIM ("Admission"). Admission is expected to take place on or around 25 April 2017.

The total number of Ordinary Shares with voting rights in issue following Admission will be 394,415,896, and this figure may then 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 to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Saltwind Enterprises Limited ("Saltwind"), a company of which Jeremy Edelman, Director, is a director and shareholder, which owns 38.6% of the Company's issued share capital is intending to subscribe £50,000 for 10,000,000 new Ordinary Shares under the Placing. In addition, Silverwood Ventures Limited ("Silverwood") and Pelamis Investments Limited ("Pelamis") which each own 12.5% of the Company's issued share capital are intending to subscribe £100,000 for 20,000,000 new Ordinary Shares and £50,000 for 10,000,000 new Ordinary Shares respectively. Accordingly, these proposed subscriptions are a related party transaction under the AIM Rules. Anthony Samaha, the Director independent of the transaction, considers, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable so far as shareholders are concerned.

Subsequent to the issue of the Subscription Shares, together with the issue of the 10,000,000 new Ordinary Shares to Saltwind as described above, Saltwind will be interested in 134,000,000 Ordinary Shares or 34.0% of the Company's issued share capital and Saltwind and Jeremy Edelman together, will be interested in 159,000,000 Ordinary Shares or 40.3% of the Company's enlarged issued share capital (including his existing 7.8% shareholding in his own name). Silverwood and Pelamis will be interested in 60,000,000 and 50,000,000 Ordinary Shares respectively, representing 15.2% and 12.7% respectively of the Company's enlarged issued share capital. 

The Company anticipates that completion of the Subscription will be announced shortly.

Competent Person Statement:

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on the information compiled or reviewed by Mr Adrian Byass, B.Sc Hons (Geol), B.Econ, FSEG, MAIG and an employee of Plymouth Minerals Limited. Mr Byass has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves. Mr Byass consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

For further information please contact:

Reabold Resources plc

Jeremy Edelman +44 (0) 207 440 0640

Antony Samaha

Beaumont Cornish Limited

Roland Cornish/ Felicity Geidt +44 (0) 20 7628 3396

Glossary of terms

Lithium grades are normally presented in percentages or parts per million (ppm). Grades of deposits are also expressed as lithium compounds in percentages, for example as a percent lithium oxide (Li2O) content or percent lithium carbonate (Li2CO3) content.

Lithium carbonate equivalent ("LCE") is the industry standard terminology for, and is equivalent to, Li2CO3. Use of LCE is to provide data comparable with industry reports and is the total equivalent amount of lithium carbonate, assuming the lithium content in the deposit is converted to lithium carbonate, using the conversion rates in the table included further below to get an equivalent Li2CO3 value in per cent. Use of LCE assumes 100% recovery and no process losses in the extraction of Li2CO3 from the deposit.

Table: Conversion Factors for Lithium Compounds and Minerals:

Read more: http://infonom.freeforums.net/thread/91/lithium-classification-conversion-factors#ixzz4e7J8MNvt

SCHEDULE 1

Tonsley Mining Pty Ltd. through its wholly owned subsidiary, EXTREMADURA MINING, S.L.U., can earn an interest in the San Jose Lithium-Tin project after Valoriza Mineria has acquired all relevant and necessary access permits to allow exploration (Investigation permits) through the following;

• Stage 1: Upon Valoriza Mineria obtaining the Investigation Permit, Valoriza Mineria and EXTREMADURA will conduct technical and economic evaluation studies on the San Jose Mine (SJM) and submit and Exploitation Concession (CdE) to the Extremadura Government within a period of 12 months (or such later date agreed by the Extremadura Government). At this point, Plymouth will earn a 50% interest in the Special Purpose Vehicle (SPV) by expending €1.5 million on technical and related studies, exploration and other works required to produce the CdE which will include the submission of the CdE at any point until the end of Stage 1.

• EXTREMADURA may withdraw from its expenditure commitments at any time during Stage 1. EXTREMADURA forfeits all rights should it withdraw during Stage 1, or should it not meet the expenditure requirements and conditions of Stage 1.

• EXTREMADURA can elect to increase its stake (Stage 2) or may continue in a 50/50 JV with Valoriza Mineria to develop the project on standard industry terms.

• Stage 2: If EXTREMADURA elects to increase its shareholding in the SPV to 75% it will enter into "Stage 2". During Stage 2, EXTREMADURA may increase its shareholding by expending a further minimum €2.5 million on or in relation to the SJM over a period of 2 years and by producing a Feasibility Study (FS). This can be extended to 3 years with a payment of €0.1 million if the FS has not been completed.

• EXTREMADURA may, at its sole discretion by notice in writing within 45 days of the date that EXTREMADURA earns the 75% interest, buy the remaining 25% interest in the SPV for a staged payment comprised of a) €0.5 million cash to be paid within 90 days, b) €0.5 million cash at commencement of mining, and c) 2% NSR capped at €3.0 million. EXTREMADURA can accelerate this payment by paying €2.5 million cash.

• EXTREMADURA may accelerate ownership through either Stage 1 or 2 by advancing payment to the SPV of the minimum funds required for the completion of works. For the stage 2, in addition to the advancing payment required, EXTREMADURA shall complete the FS.

• EXTREMADURA may withdraw from its expenditure commitments at any time during Stage 2. EXTREMADURA forfeits all rights to earn a 75% shareholding of the SPV should it withdraw during Stage 2, or should it not meet the expenditure requirements of Stage 2. In that event, EXTREMADURA will retain its 50% shareholding in the SPV and the parties will form the JV.