Amaroq Minerals Ltd. (AIM, TSX-V, NASDAQ Iceland: AMRQ), an independent mining company with a substantial land package of gold and strategic energy transition mineral assets in Southern Greenland.
Confirms, further to its announcement on 11 February 2024, its intention to conduct a placing and subscription of new common shares (“Common Shares”) to raise gross proceeds of approximately £30.0 million (equivalent to approximately C$51.0 million or ISK5.2 billion) (the “Fundraising”) at a price of 74 pence (C$1.25, ISK127) per new Common Share (the “Placing Price”), with the net proceeds being used to accelerate development and exploration activities. As announced on 11 February, the Company has already received indications of interest from investors in excess of £30.0 million at the Placing Price.
Highlights
- The approximately £30.0 million Fundraising will consist of:
- A proposed placing of new Common Shares (the “UK Placing Shares”) with new and existing institutional investors (the “UK Placing”), at the Placing Price;
- A proposed placing of new depositary receipts representing new Common Shares (the “Icelandic Placing Shares”) with new and existing investors (the “Icelandic Placing”), at the Placing Price; and
- A proposed private placement of new Common Shares (the “Canadian Subscription Shares”, together with the UK Placing Shares and the Icelandic Placing Shares, the “Fundraising Shares”) by certain existing institutional investors and a director of the Company at the Placing Price (the “Canadian Subscription”). The Director has committed to subscribe for approximately £2.0 million (equivalent to C$3.4 million or ISK 343 million) in the Fundraising.
- Net proceeds from the Fundraising will be used to accelerate mining of the Target Block at the Company’s cornerstone Nalunaq gold project (“Nalunaq”) and other associated works to enable a smoother transition to nameplate capacity of 300 tonnes per day to the processing plant, installation of a flotation circuit and dry-stack tailings facility (“DSTF”) to increase recoveries, as well as provide funding to accelerate exploration during 2024 across the Company’s Vagar, Nanoq and Gardaq JV licences.
Details of the Fundraising
- Stifel Nicolaus Europe Limited (“Stifel”) is acting as sole bookrunner and broker on the UK Placing. Stifel is also acting as the Company’s nominated adviser.
- Landsbankinn hf. (“Landsbankinn”) and Fossar fjárfestingarbanki hf. (“Fossar”) are acting as joint bookrunners on the Icelandic Placing and Landsbankinn is acting as underwriter.
- In relation to the UK Placing:
- The UK Placing will be conducted through an accelerated bookbuild process (the “Bookbuild”) to be conducted by Stifel, which will launch immediately following the release of this announcement and will be made available to eligible institutional investors subject to the terms and conditions set out in the Appendix to this announcement. The Bookbuild is expected to close no later than 6.00 p.m. (London time) on 12 February 2024, however Stifel and the Company reserve the right to close the Bookbuild earlier or later, without further notice;
- The UK Placing is subject to the terms and conditions set out in the Appendix to this announcement (collectively, the “Announcement”); and
- The UK Placing is conditional, amongst other things, upon the Icelandic Placing not having been terminated prior to admission of the Fundraising Shares to trading on the AIM market of London Stock Exchange plc (“AIM”) and the receipt of conditional approval from the TSX Venture Exchange (the “TSX-V”) for the listing of the Fundraising Shares.
- Landsbankinn has agreed to underwrite the Fundraising by up to £10 million guaranteeing to the Company participation in the Fundraising in the maximum amount of £30 million, with the commitment to procure subscribers or itself subscribe for new Common Shares to be delivered as Depositary Receipts amounting to an amount equal to the difference between £20 million and £30 million, or its equivalent in ISK.
- Allocations in the UK Placing are at the absolute discretion of Stifel, in consultation with the Company. The number of Fundraising Shares will be determined following completion of the Bookbuild by agreement between the Company and Stifel. Allocations in the Icelandic Placing are at the absolute discretion of the Company. Details of the number of Fundraising Shares will be announced as soon as practicable after the close of the Bookbuild.
Eldur Olafsson, CEO of Amaroq, commented:
“We are investing to increase recoveries at Nalunaq and to accelerate our exploration plans in our strategic mineral acreage across Southern Greenland, which has become one of the last frontiers for Western governments and companies to secure scaled supply of strategic minerals so desperately needed for the energy transition. By further de-risking the development of Nalunaq whilst also advancing exploration in both gold and strategic minerals, we believe we can deliver value for shareholders. It is a very exciting time to be the largest acreage holder in Southern Greenland.”
Enquiries:
Amaroq Minerals Ltd.
Eldur Olafsson, Executive Director and CEO
eo@amaroqminerals.com
Eddie Wyvill, Corporate Development
+44 (0)7713 126727
