Argo Blockchain, the leading cryptocurrency miner based in the UK (LSE: ARB), is pleased to announce it has entered into a non-binding Letter of Intent (LOI) with DPN LLC of New York, setting out the terms for Argo to acquire 320 acres of land in West Texas, USA, with access of up to 800-megawatts of electrical power where Argo intends to build a new 200mw mining facility in the next 12 months.
When completed, this facility will provide Argo with electricity at some of the lowest rates in the world with the majority from renewable sources.
Subject to entry into a definitive agreement and the satisfaction of related conditions, the overall price of this acquisition will be US$17.5M to be satisfied by the issue and allotment to DPN LLC of new ordinary shares in Argo. On completion of the definitive agreement, US$5m worth of new ordinary shares will be issued to DPN LLC and the balance of US$12.5m will be satisfied in shares in installments as contractual milestones are fulfilled. The value of all the new ordinary shares will be based on the 3 day VWAP (Volume Weighted Average Price) up to 8 February 2021, which was 104.04 pence per share.
As part of this project, Argo will also gain access to a pre-negotiated US$100 million credit facility at competitive rates. This will provide Argo with sufficient debt capital to build out the facility and further expand its mining fleet to upscale the Company’s operations and capacity.
In connection with the proposed acquisition, a circular will be sent out to shareholders shortly to convene a general meeting at which shareholders will be asked to approve the allotment and issue of (a) the new shares to be issued to DPN LLC and (b) the issue of further new shares to raise equity to fund the down payment (or deposit) on the credit facility.
Peter Wall, Chief Executive of Argo Blockchain, said: “We are incredibly excited about this proposed acquisition. It gives Argo tremendous control over its mining operations, as well as significant capacity for expansion. In addition, we have been able to secure access to some of the cheapest renewable energy worldwide in a location where innovation in new technologies is encouraged and incentivised.”
XMS Capital Partners LLC acted as a financial advisor to Argo Blockchain in connection with the transaction.
Argo Blockchain plc is a global leader in cryptocurrency mining with one of the largest and most efficient operations powered by clean energy. The Company is headquartered in London, UK and its shares are listed on the Main Market of the London Stock Exchange under the ticker: ARB.