TIDMALBA
RNS Number : 9824R
Alba Mineral Resources PLC
06 March 2023
Alba Mineral Resources Plc / EPIC: ALBA / Market: AIM / Sector:
Mining
6 March 2023
Alba Mineral Resources Plc
("Alba" or the "Company")
GROC Update
Amitsoq MoU with Norwegian Construction and Mining Group,
LNS
GROC Placing to raise GBP550k
Alba Mineral Resources Plc (AIM: ALBA) is pleased to note the
announcement today by its portfolio company, GreenRoc Mining Plc
("GreenRoc") (AIM: GROC), confirming the signing of a Memorandum of
Understanding ("MoU") with Norwegian Construction and Mining Group
LNS as part of GreenRoc's strategy to bring the Amitsoq Graphite
Project into commercial production. Alba also notes GreenRoc's
announcement that it has raised gross proceeds of GBP550,000 by way
of a share placing.
The GreenRoc announcement is set out below without material
changes.
GreenRoc Mining plc
("GreenRoc" or the "Company")
Amitsoq MoU Signed with Norwegian Construction and Mining Group,
LNS
Placing to raise GBP550k
GreenRoc Mining plc (AIM: GROC), a company focused on the
development of critical mineral projects in Greenland, is delighted
to announce that it has signed a Memorandum of Understanding
("MoU") with Leonhard Nilsen & Sønner A/S ("LNS"), a
significant construction and mining group headquartered in Norway,
in relation to the development of GreenRoc's Amitsoq Graphite
Project in Greenland ("Amitsoq" or the "Project") .
The Company is also pleased to announce that it has raised gross
proceeds of GBP550,000 by way of a placing of 15,714,287 new
ordinary shares of 0.1 pence each (the "Placing Shares") at a price
of 3.5 pence per Placing Share (the "Placing Price") (the
"Placing").
The net proceeds of the Placing will be put towards further test
work and studies for the advancement of the Amitsoq project in
Greenland, including work on the scoping study; the processing of a
700kg bulk sample of graphite ore; electrochemical test work on
Amitsoq HPSG (high purity spherical graphite); and ongoing work
towards the completion of Environmental and Social Impact
Assessments. The net proceeds will also support further commercial
negotiations with potential offtake and financial partners, and
general working capital requirements.
LNS MOU: Key Points
-- The MoU provides a framework for LNS and GreenRoc to explore
the commercial opportunities relating to Amitsoq, and the potential
appointment of LNS as the civil, mining and/or logistics contractor
for Amitsoq during the construction and operational phases.
-- LNS is a significant civil and mining contractor with decades
of experience as a mine operator in Norway and Greenland, as well
as in large-scale construction and infrastructure projects
encompassing underground mine development and the development of
tunnels, ports, roads and airports.
-- GreenRoc and LNS have entered phase 1 of the discussions,
focused on a detailed review of the construction and operational
requirements for Amitsoq. A successful outcome from this phase will
lead into work on heads of terms and definitive agreements.
-- The MoU also envisages discussions between the parties on
other possible commercial outcomes, such as debt/equity financing,
joint venture and procurement (of staff, equipment, and services)
at Amitsoq or GreenRoc's other projects.
-- While the focus of the MoU will be on Amitsoq, discussions
may be expanded in due course to encompass the plans for GreenRoc's
other projects in Greenland, namely Thule Black Sands and Melville
Bay Iron.
Further Information on LNS
LNS has decades of experience as a contractor and mine operator
in the Arctic region and other parts of the world. It has extensive
experience in the construction of mining infrastructure and in the
operation of producing mines in Greenland, most recently at the
producing Aappaluttoq Ruby Mine on the east coast, about 150km
south of the capital city, Nuuk. It is the operating contractor for
many mining companies in Norway, such as Elkem Tana AS (quartzite
mine), Rana Gruber AS (iron ore) and Franzefoss Miljøkalk AS
(limestone mine). It has a large fleet of machines, with options
for adaptation to all types of mass removal work and has
significant experience in underground mine development as well as
in the development of tunnels, ports, roads and airports.
In 2020, Norway's underground copper mine developer Nussir ASA
appointed LNS as the key contractor for mine development and
underground mining at the Nussir mine in Norway, in a 10-year
contract valued at some NOK4 billion or almost US$450 million,
including the development of a 130,000m tunnel. The mine is
expected to be one of the first fully electrified mines in the
world.
GreenRoc's CEO, Stefan Bernstein, commented:
"We are delighted to announce the signing of this framework MoU.
LNS is renowned for its expertise in construction and mining,
particularly underground. It has been running some of the world's
lowest-cost underground mining operations for many years and has
experience in the mining of graphite. For decades, LNS has proved
its expertise in executing large-scale projects in the Arctic and
in mountainous environments. It has gained considerable experience
from operating in Greenland over the last ten years, including in
running the mining operations at the Aappaluttoq ruby mine. LNS
also has impressive ESG credentials and its emphasis on utilising
innovative solutions to ensure a minimal environmental impact is an
approach which aligns with how GreenRoc intends to develop
Amitsoq.
"This MoU with LNS represents another important step forward for
GreenRoc in bringing the Amitsoq Graphite Project into production.
I am particularly looking forward to working with LNS as we explore
how we can accelerate Amitsoq to production and make it into a
profitable business for both companies and our shareholders, as
well as for the people of Greenland.
"I am also very pleased about our successful raise of GBP550,000
which we will put to good use to keep up pace at Amitsoq. Along
with the work programme of the Environmental and Social Impact
Assessments, we can get started on the Scoping Study. Additionally,
we will process our 700kg bulk sample to produce a sufficient
amount of graphite concentrate to allow for advanced spheronization
tests."
LNS's CEO Frode Nielsen, commented:
"With the Amitsoq project, GreenRoc has identified one of the
richer flake-graphite deposits in the world and we are therefore
excited to be selected as a preferred contractor. With our
experience from mining in Greenland and graphite mining in Northern
Norway, we are well positioned to make the project into a
sustainable and profitable operation."
LNS MOU: Next Steps
The parties have now entered a due diligence period (Phase 1) as
part of a detailed review of the construction and operational
requirements at Amitsoq, which will proceed alongside, and be
informed by, the planned Scoping Study for the Project. The Company
is in the final stage of the selection of its principal contractor
for the Scoping Study.
Following the successful conclusion of Phase 1, a second phase
(Phase 2) will involve the signing of heads of terms setting out
the key terms of the proposed contractual arrangements between the
parties, which will then be expanded upon in a third phase (Phase
3) involving the negotiation and signing of definitive
agreements.
Although the MoU does not bind the parties to consummating a
transaction, in a signal of the mutual intent of the parties to
explore the opportunities for a long-term partnership, the MoU will
remain in effect for up to 60 months unless terminated earlier by
either party in accordance with the terms of the MoU, or unless it
is extended by mutual agreement.
About Amitsoq
Amitsoq is located in the Nanortalik region of southern
Greenland and has been confirmed as one of the highest-grade flake
graphite projects in the world. GreenRoc is focused on
fast-tracking the development of Amitsoq into a producing mine in
the shortest possible timeframe to meet critical demand from
Electric Vehicle ('EV') manufacturers in Europe and North America
for new, high grade and conflict-free sources of graphite.
Key points about Amitsoq:
-- GreenRoc's primary focus at Amitsoq is on developing the
Amitsoq Island Deposit, which has a total inferred, indicated and
measured JORC Resource of 23.05 million tonnes (Mt) at an average
grade of 20.41% Graphitic Carbon ("C(g)"), giving a total graphite
content of 4.71 Mt.
-- Deposits with compliant resources above 20% contained
graphite grade are scarce, with the average global grade of
graphite resources being just 8.45% (according to S&P
Global).
-- Independent micronisation and spheronisation test work has
proven that Amitsoq graphite can be easily upgraded to high-grade
anode-quality graphite, otherwise known as high purity spherical
graphite or HPSG, a key raw material in the manufacturing of
EVs.
-- In GreenRoc's test work programmes, Amitsoq spheronised
graphite has achieved higher than 99.95% purity with relatively
little energy input and processing and using the milder alkaline
purification method compared to the industry standard hydrofluoric
acid, boding well for future production costs and sustainability
commitments.
-- Significant further upside exists at Amitsoq as the Amitsoq
Island Deposit is open in at least two directions with potential
for considerable further expansion via the similarly high-grade
Kalaaq Mainland Deposit as well as a series of other high-grade
targets on GreenRoc's licence package.
-- The deposit was in small-scale production about 100 years
ago, and there remains considerable underground mine development in
place from that time, which will be of considerable benefit to
GreenRoc in the mine construction phase.
-- Following a detailed evaluation process, the European Raw
Materials Alliance has expressed its support to GreenRoc and its
Amitsoq graphite project, stating that "GreenRoc's graphite
resource is of global importance and, together with the Company's
strategy, will enable the European Union to achieve a certain level
of independence for the electrical vehicle supply chain. ERMA has
approved the Amitsoq Graphite project and will engage to support
its development and financing to produce these critical raw
materials for the benefit of the European Union goals." (see RNS
dated 8 February 2023).
Share Placing: Admission to Trading on AIM and Total Voting
Rights
Application will be made for the Placing Shares, which will rank
pari passu with the existing ordinary shares of 0.1 pence each, to
be admitted to trading on AIM ("Admission"). It is expected that
Admission will become effective and that dealings will commence at
8:00 a.m. on or around 9 March 2023.
Following the issue of the Placing Shares, the total issued
share capital of the Company will consist of 134,314,288 ordinary
shares of 0.1 pence each. The Company does not hold any ordinary
shares in Treasury. Therefore, the total current voting rights in
the Company following Admission will be 134,314,288 and this figure
may be used by shareholders in the Company as the denominator for
the calculations by which they will determine if they are required
to notify their interest in, or a change in their interest in, the
share capital of the Company under the FCA's Disclosure Guidance
and Transparency Rules.
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Important Notices
This announcement is for information purposes only and shall not
constitute an offer to buy, sell, issue, or subscribe for, or the
solicitation of an offer to buy, sell, issue, or subscribe for any
securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
The distribution of this announcement and the offering of the
Placing Shares in certain jurisdictions may be restricted by law.
No action has been taken by the Company or SP Angel Corporate
Finance LLP ("SP Angel") that would permit an offering of such
shares or possession or distribution of this announcement or any
other offering or publicity material relating to such shares in any
jurisdiction where action for that purpose is required. Persons
into whose possession this announcement comes are required by the
Company and SP Angel to inform themselves about, and to observe
such restrictions.
This announcement is being issued by and is the sole
responsibility of the Company. No representation or warranty,
express or implied, is or will be made as to, or in relation to,
and no responsibility or liability is or will be accepted by SP
Angel, nor any of their affiliates or agents (or any of their
directors, officers, employees or advisers) for the contents of
this announcement, or any other written or oral information made
available to or publicly available to any interested party or its
advisers, or any other statement made or purported to be made by or
on behalf of SP Angel or any of their respective affiliates in
connection with the Company or the Placing and any responsibility
therefor is expressly disclaimed. No representation or warranty,
express or implied, is or will be made as to, or in relation to,
and no responsibility or liability is or will be accepted by SP
Angel, or any of their affiliates, agents, directors, officers or
employees as to, or in relation to, the accuracy or completeness of
this announcement or any other written or oral information made
available to or publicly available to any interested party or its
advisers, and any liability therefore is expressly disclaimed.
Forward-looking statements
Certain statements, beliefs and opinions in this announcement
are forward-looking, which reflect the Company's or, as
appropriate, the Company's directors' current expectations and
projections about future events. By their nature, forward-looking
statements involve a number of risks, uncertainties and assumptions
that could cause actual results or events to differ materially from
those expressed or implied by the forward-looking statements. These
risks, uncertainties and assumptions could adversely affect the
outcome and financial effects of the plans and events described
herein. Forward-looking statements contained in this announcement
regarding past trends or activities should not be taken as a
representation that such trends or activities will continue in the
future. Except as required by applicable law or regulation, the
Company does not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. You should not place undue reliance on
forward-looking statements, which speak only as of the date of this
document.
**ENDS**
For further information, please visit
www.albamineralresources.com or contact:
Alba Mineral Resources Plc
George Frangeskides, Executive Chairman +44 20 3950 0725
SPARK Advisory Partners Limited (Nomad)
Andrew Emmott / Neil Baldwin +44 20 3368 3555
OvalX (Broker)
Thomas Smith +44 20 7392 1494
St Brides Partners (Financial PR)
Isabel de Salis / Catherine Leftley alba@stbridespartners.co.uk
Alba's Projects and Investments
Mining Projects Operated Location Ownership
by Alba
Clogau (gold) Wales 100%
----------- ----------
Dolgellau Gold Exploration
(gold) Wales 100%
----------- ----------
Gwynfynydd (gold) Wales 100%
----------- ----------
Investments Held by Alba Location Ownership
----------- ----------
GreenRoc Mining Plc (mining) Greenland 4 4 .7%
----------- ----------
Horse Hill (oil) England 11.765%
----------- ----------
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END
MSCEAKDKESEDEEA
(END) Dow Jones Newswires
March 06, 2023 02:00 ET (07:00 GMT)
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