6th Feb 2017 08:10
LONDON (Alliance News) - Glenwick PLC on Monday said it has agreed to purchase Cora Gold Ltd, which will allow the company to have its shares readmitted to AIM.
Glenwick had its shares suspended on September 5, 2016, after becoming an investment company and has six months to implement its investment strategy before having its shares cancelled from trading.
Glenwick has recently moved early to snap up a stake in a separate firm named i3 Energy Ltd, which is set to launch its initial public offering in London shortly. Glenwick invested through a pre-initial public offering convertible loan note, but later decided to convert the loan into shares after i3 completes its IPO.
The non-binding heads of terms to acquire 100% of Cora Gold is a separate transaction, which the company said "will constitute a new admission to trading under the AIM rules".
The i3 investment is intended to run parallel to and exclusive of the Cora Gold takeover, Glenwick said.
Glenwick warned of the threat of having its shares cancelled from trading, but said: "The cancellation will not impact on the proposed transaction and the board will seek a new admission to trading of the enlarged share capital of the company as part of the proposed transaction.
Glenwick will acquire Cora in an all-share deal, issuing Glenwick shares that will be equal to 91% of the enlarged issued share capital of the business. The deal is subject to a legal agreement being signed and due diligence exercise by the parties involved.
Notably, Cora was established in 2006 by London-listed Hummingbird Resources PLC and Kola Gold Ltd, for the purpose of amalgamating certain of Hummingbird's non-core gold exploration permits in Mali together with Kola's permits in Mali and Senegal.
The company holds 10 gold exploration properties in two areas, the Kenieba Window in Mali and Senegal and the Yanfolila gold belt in Mali.
"The parties have agreed to work expeditiously to complete these conditions with a view to the enlarged ordinary share capital of Glenwick admitting to trading on AIM in the second quarter of 2017," said Glenwick.
Glenwick said it has also raised GBP130,000 via a non-brokered capital raising through the placing of 260 million shares priced at 0.05 pence each. Those shares have been issued to London-listed Paternoster Resources PLC.
"Paternoster will receive a pro-rata entitlement to the i3 Energy shares once they are distributed to Glenwick shareholders for the new shares. The proceeds of the placing will be used for general working capital that is required to initiate the proposed transaction and for the initial costs associated with the company's new admission to trading," said Glenwick.
"The new shares will be issued following the earlier of the cancellation or a return to trading on AIM from the suspension," Glenwick added.
Amanda van Dyke is a director of both Glenwick and Paternoster.
By Joshua Warner; [email protected]; @JoshAlliance
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