Business
Acquisition and Proposed Placing and Subscription
Acquisition and Proposed Placing and Subscription.
About this update from Power Metal Resources Plc
[{"type":"text","content":"\n \nRNS Number : 8809Y Sula Iron & Gold PLC 08 December 2017 \n\nFor immediate release\nSula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources\n \n8 December 2017\nSula Iron & Gold plc \n(\"Sula\" or the \"Company\")\n \n \nProposed placing and subscription to raise approximately £1,750,000 \nSettlement and termination of the Riverfort Facility and associated buy-back of ordinary shares from D-Beta\nAcquisition of a controlling interest in the Cobalt Licence\nChange of name\nProposed Share Capital Reorganisation and amendments to the Articles of Association\nand\nNotice of General Meeting\nIntroduction\nThe Company today announces that it has acquired a controlling interest in a Cobalt Licence and has conditionally raised £1,750,000 (before expenses), through the placing of 3,000,000,000 New Ordinary Shares with certain new and existing investors and a subscription for 500,000,000 New Ordinary Shares with a single investor all at a price of 0.05 pence per share. The Fundraising, which has been arranged by SP Angel, is conditional, inter alia, upon Shareholders' approval of each of the Resolutions and Admission.\nThe net proceeds of the Fundraising will be used:\n1. to capitalise a new company to be incorporated in the DRC which will be 70% owned by Sula and 30% by the Vendor which will hold the Cobalt Licence;\n2. to provide working capital to commence systematic geological exploration work under the Cobalt Licence, so commencing the process leading to the definition of an initial JORC-compliant cobalt and copper resource;\n3. to buy-back the D-Beta New Shares;\n4. to provide working capital to Blue Horizon, the Company's subsidiary which carries out its gold and iron exploration activities in Sierra Leone;\n5. to assess other cobalt-copper opportunities in DRC; and\n6. for general working capital purposes.\n \nA Circular containing further details of, inter alia, the Fundraising and the Acquisition, and including a notice convening the General Meeting which will be held at Michelmores LLP, 12th Floor, 6 New Street Square, London EC4A 3BF on 27 December 2017 at 10.00 a.m., together with a form of proxy for use at the General Meeting, is expected to be despatched to Shareholders today and will thereaf...