17 June
2024
Pathfinder Minerals
plc
("Pathfinder" or
the "Company")
Update on the proposed
acquisition of Rome Resources
Pathfinder Minerals PLC (AIM:PFP),
an AIM Rule 15 cash shell, provides the following update on its
proposed acquisition of the entire issued and to be issued share
capital of Rome Resources Ltd ('Rome Resources') (the "Proposed Transaction").
Highlights
· OAK
Securities to provide advance funding of up to £100,000;
· Pathfinder to support Rome Resources in securing long lead
items and fulfilling contractual obligations to commence drilling
in mid-July 2024; and
· Fundraise indications received for in excess of £4,000,000
which is contemplated in conjunction with the Proposed
Transaction.
On 9 May 2024, the Company announced
that Oak Securities have indicated that they will make a
cornerstone investment of at least £300,000 in any fundraise
contemplated in conjunction with the Proposed Transaction. We are
now pleased to announce that the Company's joint broker, OAK
Securities, has agreed to provide advance funding to the Company of
up to £100,000 (the "Advanced
Funding") by 21 June. As a result of the Advanced Funding
provided, it is anticipated that Oak Securities will receive equity
in the enlarged group on the same terms as those participating in
the fundraise contemplated in conjunction with the Proposed
Transaction.
In the event that the Proposed
Transaction fails to complete for whatever reasons, it is
anticipated that Oak Securities will then instead receive ordinary
shares of 0.01 pence each in the share capital of the Company
("Ordinary Shares") at 0.30
pence per new Ordinary Share.
Proposed use of the Advanced Funds
As a result of the Company receiving
the Advanced Funds, the Company intends to provide Rome Resources
with up to CA$100,000 (the "Loan"). The provision of the Loan will
be made under the Company's existing loan arrangement with Rome
Resources, whereby the Company agreed to lend Rome Resources up to
CA$2,500,000 on an unsecured basis, details of which were announced
by the Company on 29 November 2023. The remainder of the Advanced
Funding will be used by Pathfinder for working capital purposes,
including but not limited to meeting certain ongoing costs
associated with the Proposed Transaction.
It is anticipated that part of the
Advanced Funding will be used by Rome Resources to complete
preparatory work and contractual obligations ahead of the
commencement of drilling in July 2024. Rome Resources has
informed the Company that the proposed work program consists of a
drilling campaign to follow up on the highly encouraging results
from Rome Resources' 2023 drilling campaign, which drilled several
high-grade intercepts of copper, zinc and most significantly tin,
only 8km from the Mpama North mine, the world's highest grade tin
mine at 4.5% tin. Rome Resources has 3 diamond drill rigs
contracted to commence operations in due course.
Proposed Fundraise contemplated alongside the Proposed
Transaction
OAK Securities have additionally
confirmed to the Company that indications of interest have been
received from institutions and family offices in excess of
£4,000,000 in relation to the fundraise contemplated alongside the
Proposed Transaction. As these indications are indicative,
there can be no guarantee that any such final fundraise
contemplated by the Company alongside the Proposed Transaction will
reach such quantum nor can the precise final terms, including
price, can be confirmed at this stage. A further announcement will
be made by the Company once the terms of any such fundraise is
agreed.
The Company currently expects to
publish an AIM admission document (the "Admission Document") in respect of
the Proposed Transaction by the end of June
2024.
Paul Barrett, Executive Director of Pathfinder Minerals Plc
commented:
"We are delighted at the support of OAK Securities,
demonstrating their belief and commitment in what will be a very
exciting few months ahead on the ground in the
DRC."
Jerry Keen, Head of Corporate Broking at OAK Securities
commented:
"We are very pleased to provide the financial assistance to
Pathfinder as the final stage of the Proposed Transaction
approaches to ensure a seamless transition to commencement of the
drilling program next month."
Enquiries:
Pathfinder Minerals Plc
Paul Barrett, Executive
Director
Tel. +44 (0)20 3143 6748
Allenby Capital Limited (Nominated Adviser and
Broker)
John Depasquale / Vivek Bhardwaj /
Lauren Wright (Corporate Finance)
Stefano Aquilino / Joscelin
Pinnington (Sales & Corporate Broking)
Tel. +44 (0)20 3328 5656
OAK
Securities (Joint Broker)
Jerry Keen, Head of Corporate
Broking (jerry.keen@oak-securities.com)
Henry Clarke, Head of Sales
(henry.clarke@oak-securities.com)
Tel. +44 (0)20 3973 3678
Camarco (Financial PR)
Gordon Poole / Emily Hall / Sam
Morris
Tel. +44 (0) 20 3757 4980
OAK Securities is a trading name of
Merlin Partners LLP. Merlin Partners LLP is authorised and
regulated by the Financial Conduct Authority (Reference Number:
449191). Merlin Partners LLP is registered in England and Wales
(Registered Partnership Number: OC317265).