24th Apr 2008 08:00
Obtala Resources PLC24 April 2008 24 April 2008 OBTALA RESOURCES PLC ("Obtala" or the "Company") FIRST DAY OF DEALINGS ON THE AIM MARKET OF THE LONDON STOCK EXCHANGE Obtala is the holding company of a mineral exploration and development group ("the Group") that has an initial focus on gold, nickel, copper, iron ore anduranium opportunities in Tanzania, East Africa. The Group is led by a board ofdirectors, who have experience of operating resources companies in emergingmarkets. The Group's objective is to commence the exploration of its portfolioof mineral assets and ultimately to increase the value of its Mineral Assetsthrough the development of resources estimates and, where appropriate, commenceproduction of the economically feasible Mineral Assets. Admission Statistics Placing Price 20p Number of Placing Shares 17,500,000 Number of Ordinary Shares in issue 177,500,000immediately following Admission Percentage of Enlarged Ordinary Share 9.9 per cent.Capital on Admission representedby the placing shares Market capitalisation of the Company £35,500,000on Admission at the Placing Price Gross proceeds of the placing £3,500,000 TIDM OBT Zimmerman Adams International Limited is acting as the nominated adviser andbroker for the Company. Definitions used in this announcement will have the same meanings, unless thecontext requires otherwise, as those used in the AIM admission document of theCompany dated 17 April 2008. ContactMichael Bretherton +44 (0) 20 7099 7266www.obtalaresources.co.uk Obtala Resources plc Ray Zimmerman/Jonathan Evans +44 (0) 20 7060 1760 Zimmerman Adams International LtdNominated Adviser and Broker The Group's strategy The Group's strategy will focus on working with local partners who will beactively engaged in the process of exploration. The board of directors intend toutilise both internal and external expertise to develop the Mineral Assets whilemaintaining a disciplined asset and cost base. The Group currently holds a portfolio of exploration assets in Tanzaniacomprised of exclusive or majority interests in a total of 18 licences coveringa total area of over 3,700 km2. The Mineral Asset Properties cover prospectivemineralisation targets including gold, nickel, copper, iron ore and uranium.There has not yet been any significant exploration work on the Mineral AssetProperties and therefore no resources estimates have been formulated. Followingan initial period of drilling and sampling the Group will evaluate the resultswith a view to formulating indicative resources estimates. Details of the licences Type of resource Number of licencesGold 9Nickel 2Copper 3Iron Ore 1Uranium 3 The Group will allocate capital to the exploration of assets across its MineralAsset Properties with the priority of identifying the potential of each MineralAsset and assessing the value creation for its Shareholders. The Group may use the proceeds of strategies to enhance Shareholder value suchas developing a Mineral Asset using its own team, development in partnershipwith other groups or a disposal of a Mineral Asset where appropriate. Inimplementing its strategy the company will focus on those of its Mineral assetswhich are identified, following initial sampling and drilling, as having thegreatest potential for creating shareholder value. Use of Proceeds The Group intends to use the proceeds of the Placing for general working capitalrequirements and funding of the exploration, with initial work focused on theRulenge Nickel Licence and the Lake Victoria Gold Field Licences. The Groupcontinues to evaluate new mineral assets and whilst there are no specificacquisitions under consideration the Group may allocate a proportion of thePlacing Proceeds for future acquisitions. The Board The Board comprises of Frank Scolaro (as Executive Chairman), Michael Bretherton(as Finance Director), James-Ede-Golightly and James Bain (both of whom areNon-Executive Directors). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Woodbois