20 Jan 2015 13:09
20 January 2015
W Resources Plc
("W" or the "Company")
Placing to Raise £1.4m
W Resources Plc (AIM:WRES), a tungsten, copper and gold mining, exploration, development and production company has completed a placement of 466,666,664 ordinary shares of 0.1p per share ("Ordinary Shares") at 0.30p per Ordinary Share to raise approximately £1,400,000 million (the "Placing"), before expenses.
Application has been made for the new Ordinary Shares being issued in connection with the Placing to be admitted to trading on AIM which is expected to occur on or around 26 January 2015. The funds raised will provide working capital to progress the development of Stage 2 of the La Parrilla fast-track mine and the Régua mine.
Michael Masterman, Chairman of W, commented: "We welcome our new investors including Hansource Investments Limited, a newly formed strategic UK investment group funded from Greater China, as a new substantial shareholder. Hansource owners have significant experience in the mining industry. The placement provides W with a strong base to progress the development of the La Parrilla and Régua mines, at which the Company expects to reach significant milestones in 2015."
Related Party Transaction
The placees include Symmall Pty Limited as trustee of the Masterman Superannuation Fund of which Mr. Michael Masterman (a director of the Company) is both a beneficiary and trustee, which has subscribed for 50,666,666 Ordinary Shares amounting to £152,000, and Beronia Investments Pty Ltd ATF Duke Trust of which Dr. Byron Pirola (a director of the Company) is both a beneficiary and trustee, who has subscribed for 16,666,666 Ordinary Shares amounting to £50,000.
The participation in the Placing of Mr. Masterman and Dr. Pirola falls to be treated as a related party transaction under AIM Rule 13. The independent director, being Mr. David Garland, having consulted with Grant Thornton Corporate Finance (the Company's nominated adviser), confirms that he is satisfied that the terms of Mr. Masterman and Dr. Pirola's participation in the Placing are fair and reasonable insofar as the shareholders of the Company are concerned.
Following the issue of all new Ordinary Shares, the Company will have 2,886,437,497 Ordinary Shares in issue and:
- Mr. Michael Masterman (and related parties) will be interested in 790,549,169 Ordinary Shares in the Company, representing an interest of 27.39 per cent in the total voting rights; and
- Dr. Byron Pirola (and related parties) will be interested in 171,876,415 Ordinary Shares in the Company, representing an interest of 5.95 per cent in the total voting rights.
Enquiries:
W Resources Plc | Grant Thornton UK LLP |
Michael Masterman | Colin Aaronson / Jen Clarke / Harrison Clarke |
T: +44 (0) 20 7193 7463 | T: +44 (0) 20 7383 5100 |
www.wresources.co.uk | |
SI Capital | Gable Communications |
Andy Thacker / Nick Emerson | John Bick |
T: +44 (0) 1483 413500 | T: +44 (0) 20 7193 7463 |
www.sicapital.co.uk | M: +44 (0) 7872 061007 |
About W
In 2012, W Resources Plc (AIM:WRES) made the successful transition into a tungsten production exploration and development company with projects in Spain and Portugal, following two acquisitions. Projects now include La Parrilla, a tungsten project in Spain and Régua and Tarouca Tungsten projects and the Portalegre copper-gold project in Portugal.
The Company's deposits and tungsten mine developments offer a low cost, high margin resource development opportunity due to a strong market following for Tungsten, increased trading and a forecast shortage of supply. The price of tungsten has more than doubled in past three years and is in the top 5 critical metals list.
The Board is focused to explore further opportunities in the region with a view to building a mid-tier minor metal producer.
The Company was incorporated in England and Wales in 2004.