27th Jan 2010 16:00
Alecto Energy plc / Index: AIM / Epic: ALO
27 January 2010
Alecto Energy plc ('Alecto' or the 'Company')
£45,000 Working Capital Loan and Issue of New Shares
Exclusivity period to assess Bulgarian uranium exploration licenses
Agreement initiated following SRK Exploration Services initial analysis of licenses
Select target licenses already subject of historic advanced stage exploration
Alecto to assess potential of rapidly converting historic resources to western resource standards through additional exploration work
Alecto, the AIM listed investing company with a strategy of making investments in the energy sector, today announces that it has entered into an agreement to provide Bulgarian Mining Corporation Ltd ("BMC") with a 90 day working capital facility of £45,000 (the "Loan"). The Loan is to be used by BMC for general working capital related to its strategy of acquiring uranium exploration licences in Bulgaria.
Alecto and BMC have also entered into a non-binding memorandum of terms (the "Agreement"), which may result in Alecto making an investment in BMC. Alecto and BMC have agreed a 90 day exclusivity period during which Alecto will perform due diligence on BMC. In consideration for the 90 day exclusivity period the Company will issue 30,000,000 new ordinary shares at an issue price of 0.3p to the shareholders of BMC. At this time there can be no certainty that Alecto will make any investment in BMC. Should Alecto's proposed investment in BMC not be made by 27 April 2010 the Loan shall become immediately repayable.
Bulgaria was historically a top 20 producer of uranium globally, however in 1992, mining ceased due to it becoming uneconomical as a result of low uranium prices. Recent years have seen a revival in the mining industry in general with increased foreign investment and good exploration results. There has been a drive to privatise the mining sector and the Government of Bulgaria is working to enforce new regulations in line with EU standards.
In addition, Alecto announces that it is in the process of completing a placing to raise up to £170,000 from new and existing shareholders at an issue price of 0.32 pence per new ordinary share. The Board of Alecto are in the process of finalising the proposed placing and will make further announcements as appropriate.
Commenting today Damian Conboy, CEO of Alecto, said: "This working capital arrangement allows us to move to the last stage of due diligence on a series of prospective uranium assets in Bulgaria. Following an independent report from SRK Exploration Services we believe that Alecto has identified a series of uranium assets with significant levels of exploration already conducted on them. We shall use this exclusivity period with BMC to fully assess the opportunity to rapidly progress economic resources at these projects through further exploration work. The Board of Alecto will make further announcements as appropriate."
**ENDS**
For further information on the Company, visit: www.alectoenergy.com or contact:
|
Damian Conboy |
Alecto Energy plc |
Tel: 020 3006 0260 |
|
Greg Kuenzel |
Alecto Energy plc |
Tel: 020 3328 5670 |
|
Nick Naylor |
Allenby Capital Limited |
Tel: 020 3328 5656 |
|
Jamie Boyd |
Allenby Capital Limited |
Tel: 020 3328 5656 |
Related Shares:
ALO.L