Business
Shard Facility Update
Shard Facility Update.
About this update from Zanaga Iron Ore Co. Ltd.
[{"type":"text","content":"\n\n28 June 2024 \nShard Facility Update and New Shard Facility\n \nZanaga Iron Ore Company (\"ZIOC\" or the \"Company\") (AIM:ZIOC) is pleased to provide an update to shareholders on its existing funding structures in place with Shard Merchant Capital Ltd (\"SMC\"), including both the intention to issue the final share tranche relating to the Company's existing equity subscription agreement with SMC (\"Existing ESA\") as well as the intention to enter into a new equity subscription agreement (\"2024 ESA\").\n \nExisting ESA\n \nFurther to the announcements dated 3 July 2023 and 14 December 2023 in relation to the Existing ESA, ZIOC is pleased to report that the second tranche of 12 million ordinary shares of no par value in the Company (\"Ordinary Shares\") issued pursuant to the Existing ESA has successfully been placed by SMC.\n \nZIOC received net proceeds of approximately £890,466 in aggregate in relation to the placing by SMC of the second tranche of 12 million Ordinary Shares under the Existing ESA, resulting in total combined proceeds of £1,667,755 from Tranche 1 and Tranche 2.\n \nAs provided for in the Existing ESA, the Company intends to give notice to, and SMC shall then subscribe for, the third tranche of 12 million Ordinary Shares (\"Existing ESA Tranche 3\"), conditional, amongst other things on admission of those shares to trading on AIM.\n \nNew ESA\nIn order to provide the Company with increased ability to raise additional working capital the Company and SMC intend to enter into the 2024 ESA. This follows the successful implementation of equity subscription agreements on similar terms in 2020 and 2023.\nUnder the 2024 ESA the Company would issue, and SMC would subscribe for, up to 36 million ordinary shares of no par value in the Company (\"Subscription Shares\") in up to three tranches of up to 12 million shares each (as described below).\nIn the event the maximum number of Subscription Shares are issued by ZIOC and subscribed for by SMC, including the issuance of the Existing ESA Tranche 3 mentioned above, the share capital of ZIOC would be increased by c.7.4% on a fully diluted basis, based on the 644,644,989,909 ordinary shares in the Company in issue as at today's date.\nPursuant to the 2024 ESA, SMC would undertake to use its reasonable endeavours to place the relevant S...