TORONTO, ONTARIO, Feb. 12, 2024 (GLOBE NEWSWIRE) — THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. PLEASE SEE THE IMPORTANT NOTICES SECTION WITHIN THIS ANNOUNCEMENT.
THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY, AND DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR ISSUE, OR ANY SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES OF AMAROQ MINERALS LTD.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION NO 596/2014, WHICH IS PART OF ICELANDIC LAW BY VIRTUE OF THE ACT NO 60/2021 ON MEASURES AGAINST MARKET ABUSE AND THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014, WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Amaroq Minerals Ltd.
(“Amaroq” or the “Company”)
Statement Regarding Press Speculation
TORONTO, ONTARIO – 11 February 2024 – 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, notes the current press speculation regarding a possible equity fundraising and confirms it is in the process of taking indications of interest from investors with regards to a placing and subscription of new common shares (“Common Shares”) to raise 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 proceeds being used to accelerate development and exploration activities with the focus to materially increase shareholder value and derisk the Company’s portfolio. To date, the Company has received indications of interest from investors in excess of £30.0 million at the Placing Price and the placing is underwritten partly by Landsbankinn (see below).
Further information regarding the Fundraising will be announced in due course.
Eldur Olafsson, CEO of Amaroq, commented:
“Following excellent results from last Summer’s activities, we are now investing to increase recoveries at Nalunaq and to accelerate our exploration plans across our strategic mineral acreage in Southern Greenland, bringing our programme forward by two years. 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. In addition, the Company will now become net debt free.
“It is a very exciting time to be the largest acreage holder in Southern Greenland, an area which has become one of the last frontiers for Western governments and companies to secure scaled supply of the strategic minerals so desperately needed for the energy transition. Now the value that we have been building over the past eight years will be tested through further development and drilling to unlock the true potential of our land package.”
- The approximately £30.0 million Fundraising is intended to 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 private placement 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 directors of the Company at the Placing Price (the “Canadian Subscription”).
- Net proceeds from the Fundraising are intended to 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.
- 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. The UK Placing will be conducted through an accelerated bookbuild process (the “Bookbuild”) to be conducted by Stifel and a further announcement will be made regarding the Bookbuild shortly.
- 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 Icelandic Placing, 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.
Amaroq Minerals Ltd.
Eldur Olafsson, Executive Director and CEO
Eddie Wyvill, Corporate Development
+44 (0)7713 126727
Stifel Nicolaus Europe Limited (Joint Bookrunner, Nominated Adviser and Joint Broker)
+44 (0) 20 7710 7600
Landsbankinn hf. (Joint Bookrunner and Underwriter)
+354 410 4000
Fossar Investment Bank hf. (Joint Bookrunner)
Þórður Ágúst Hlynsson
+354 522 4000
Camarco (Financial PR)
+44 (0) 20 3757 4980
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The information contained within this Announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014 which is part of Icelandic law by virtue of the Act No 60/2021 on Measures Against Market Abuse and forms part of the law of England and Wales by virtue of section 3 of the European Union (Withdrawal) Act 2018, and is disclosed in accordance with the Company’s obligations under Article 17 of that Regulation. Upon the publication of this Announcement, this inside information is now considered to be in the public domain and will no longer constitute inside information.
This Announcement does not constitute, or form part of, a prospectus relating to the Company, nor does it constitute or contain an invitation or offer to any person, or any public offer, to subscribe for, purchase or otherwise acquire any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it form the basis of or be relied on in connection with any contract or as an inducement to enter into any contract or commitment with the Company.
This Announcement is not for publication or distribution, directly or indirectly, in or into the United States of America, Australia, The Republic of South Africa (“South Africa”), Japan or any other jurisdiction in which such release, publication or distribution would be unlawful. This Announcement is for information purposes only and does not constitute an offer to sell or issue, or a solicitation of an offer to buy, subscribe for or otherwise acquire any securities in the United States (including its territories and possessions, any state of the United States and the District of Columbia (collectively, the “United States”)), Iceland, Australia, Canada, South Africa, Japan or any other jurisdiction in which such offer or solicitation would be unlawful or to any person to whom it is unlawful to make such offer or solicitation.
The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States, except pursuant to an applicable exemption from the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States, or under the securities laws of Iceland, Australia, Canada, South Africa, Japan, or any state, province or territory thereof or any other jurisdiction outside the United Kingdom, except pursuant to an applicable exemption from the registration requirements and in compliance with any applicable securities laws of any state, province or other jurisdiction of Iceland, Australia, Canada, South Africa or Japan (as the case may be). No public offering of securities is being made in the United States, Iceland, Australia, Canada, South Africa, Japan or elsewhere.
No action has been taken by the Company, Stifel, Landsbankinn, Fossar or any of their respective affiliates, or any of its or their respective directors, officers, partners, employees, consultants, advisers and/or agents (collectively, “Representatives”) that would permit an offer of the Fundraising Shares or possession or distribution of this Announcement or any other publicity material relating to such…
Read More: Statement Regarding Press Speculation – Junior Mining Network