/NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES/
PERTH, Australia, Nov. 23, 2012 /CNW/ - Elemental Minerals Ltd. (ASX,
TSX: ELM) ("Elemental" or "the Company") is pleased to announce results
of its recently announced capital raise.
Private placement commitments received from sophisticated and
institutional investors to raise ~A$14 million
Share purchase plan targeting a further A$5 million
Funds raised will be used to maintain appropriate levels of capital for
study costs, exploration and resource definition, working capital and
general corporate purposes
Subscription levels demonstrated strong investor interest in the Company
Details of the Placement
The Company announces it has today received commitments from
sophisticated and institutional investors to raise ~A$14 million. The
placement will result in the issue of ~36.5 million new fully paid
ordinary shares at A$0.385 per share utilising the Company's available
15% placement capacity to issue the new shares without shareholder
The placement was undertaken on a combined non-underwritten brokered
basis with BMO Capital Markets, Renaissance Securities (Cyprus) Limited
and National Bank Financial Inc.
The Company's largest shareholder, Pala Investments Limited, also
participated in the placement.
Elemental's CEO, Iain Macpherson stated: "Elemental is pleased with the very strong support for the capital
raising. The additional working capital will strengthen the Company's
balance sheet and enable it to continue to advance the development of
our project while continuing to assess alternatives open to us".
Settlement of the placement is scheduled to take place on 28 November
2012 with quotation of those shares on the ASX anticipated to occur on
or about 29 November 2012.
Settlement and completion of the placement is conditional upon, amongst
other customary conditions, conditional listing approval from the
Toronto Stock Exchange.
Share Purchase Plan
Elemental will also implement a share purchase plan ("SPP") to provide
eligible qualifying shareholders with the opportunity to subscribe for
up to A$15,000 each worth of new Elemental shares at the same price as
the placement and without brokerage or commission.
The SPP is only available to Australian and New Zealand shareholders who
are registered as shareholders as at 4:00pm Perth time on 22 November
2012. The SPP will target to raise a maximum of A$5 million. Further
details of the SPP will be announced shortly.
Use of funds and operational update
Elemental plans to use the net proceeds from the financing to maintain
appropriate levels of capital for study costs, exploration and resource
definition, working capital and general corporate purposes.
23 November 2012
Date announced to ASX and trading halt lifted
Placement shares issue date
28 November 2012
Date the shares are issued to participants in the placement
Placement shares trading date
29 November 2012
Date the placement shares commence trading
About Elemental Minerals
Elemental Minerals Limited is an advanced mining exploration and
development company that aims to grow shareholder value through its
93%-owned Sintoukola Potash Project on the Republic of Congo
coastline. Elemental Minerals is dual listed on the Australian Stock
Exchange and the Toronto Stock Exchange under the symbol ELM. For more
information, visit www.elementalminerals.com
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
This announcement does not constitute an offer to sell, or a
solicitation of an offer to buy, any securities in the United States or
in any other jurisdiction in which such an offer would be illegal. The
securities described hereunder have not been, and will not be,
registered under the U.S. Securities Act of 1933 or under the
securities laws of any state or other jurisdiction of the United
States. Accordingly, the securities described hereunder may not be
offered or sold to persons in the United States except pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the U.S. Securities Act of 1933 and applicable state
This press release contains statements that are "forward-looking".
Generally, the words "expect," "intend," "estimate," "will" and similar
expressions identify forward-looking statements. By their very nature,
forward-looking statements are subject to known and unknown risks and
uncertainties that may cause our actual results, performance or
achievements, to differ materially from those expressed or implied in
any of our forward-looking statements, which are not guarantees of
Statements in this press release regarding the Company, which are not
historical facts, are "forward looking" statements that involve risks
and uncertainties, such as to completion of the capital raising
described herein including words to the effect that the Company or
management expects a stated condition or result to occur. Since
forward-looking statements address future events and conditions, by
their very nature, they involve inherent risks and uncertainties.
Actual results in each case could differ materially from those
currently anticipated in such statements.
Investors are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date they are made.
SOURCE: Elemental Minerals Limited
For further information:
Chief Executive Officer
Tel: +27 (0) 76 238 4461
Tel: +27 (0) 82 445 5291
Investor Relations Manager
Tel: +27 (0) 83 604 0820
Johannesburg Office: +27 11 469 9140