Business
Andiamo Update
Andiamo Update.
About this update from Arc Minerals Limited
[{"type":"text","content":"\n\n \n Ortac Resources Limited 21 February 2017 \n\n21 February 2017\nOrtac Resources Ltd\n(\"Ortac\" or the \"Company\")\n \nAndiamo Update\n \nThe Board of Ortac, the mineral exploration company operating in Europe and Africa, announces an update in respect of its exploration partner in Eritrea, Andiamo Exploration Ltd (\"Andiamo\"), in which Ortac held a 26.99% equity interest.\n \nHighlights\n· $0.5million raised by Andiamo through a non-brokered placement\n· Andiamo share Issue in consideration for the termination of Andiamo's Joint Venture arrangement with Environminerlas East Africa Limited (\"EEAL\")\n· Following the placement and share issue, Ortac's shareholding in Andiamo represents 18.48% of the shares in Andiamo\n \nEmerald Ex BV (\"Emerald\") has subscribed for 5,000,000 new shares in Andiamo at US$10cents per share for proceeds of US$0.5million, through a non-brokered placement.\nFurther to the announcement on the 6th December 2016, Andiamo and EEAL have terminated the Joint Venture arrangement over a part of the Haykota Licence for consideration of 13,140,365 shares of Andiamo issued to EEAL at an implied value of approximately US$17cents per share.\n \nVassilios Carellas, Ortac's CEO, commented: \"We welcome this development which enables Andiamo to continue exploration to the South of the very successful Bisha mine and brings a strong private equity group on to the share register.\"\n \nBackground\n \nNon-Brokered Placement\nEmerald Ex BV has subscribed for five million new shares in Andiamo at US$10cents per share for proceeds of US$0.5million, through a non-brokered placement.\nEmerald is a subsidiary of NurtureEx B.V. (\"NurtureEx\"), which is funded by African Mineral Exploration and Development (AMED) which is a private equity group investing in mineral exploration and development projects predominately in sub-Saharan Africa.\nNurtureEx has been involved in Andiamo since early 2014 as an investor in EEAL which had earned a 50% interest in a northern area of the Haykota Exploration Licence.\n \nShare issue to EEAL\nAndiamo and EEAL have also ended their joint venture arrangement which covered a part of the Haykota Exploration Licence. Under this arrangement, EEAL was issued 13,140,365 Andiamo shares. EEAL ha...