News
Fundraising to raise up to £520,000
Lotus Resources Plc, a company engaged in the development of fluorspar mining and exploration projects in Mongolia is pleased to announce that it has entered into an agreement with Habsburg & Partner Advisory AG (`Habsburg & Partner' or 'the Subscriber') to raise up to £500,000 in further funding for the Company to provide additional, near-term, growth capital.
As per the Subscription Agreement signed on 8th December 2009, between Lotus and the Subscriber, Habsburg & Partner has agreed to subscribe for up to 23,182,442 new ordinary shares of 1p, in three tranches, at a price of 2.13p.
Pursuant to the Agreement, Lotus has today issued the first tranche of 7,042,253 shares at 2.13p representing a total consideration of £150,000. The Subscriber has undertaken to make and settle payment of this amount within 30 days of the shares being received by the Subscriber.
In addition, under the terms of the Subscription Agreement, Lotus has granted the Subscriber the following:
- First Option: With effect from 1st January 2010, an option to subscribe for the lower of:
- such number of ordinary shares in Lotus as represents 15% of the issued share capital as on 31st December 2009 or
- 9,569,890 shares at 2.13p representing £203,837
The option can only be exercised when payment for the first tranche has been settled.
If unexercised, the First Option will lapse on 20th January 2010.
The First Option can only be exercised in its entirety and is non-transferable.
- Second Option: Subject always to the necessary approvals of the shareholders of Lotus in general meeting and subject to the prior exercise of the First Option, an option to subscribe for 6,570,399 of the Shares at a price per Share of 2.13p representing a total consideration of £139,950.
If unexercised, the Second Option will automatically lapse on 20th February 2010.
The Second Option can only be exercised in its entirety and is non-transferable.
Lotus has agreed to issue and allot the relevant securities within 2 business days of the exercise of either of these two options; the Subscriber has agreed to settle payment within 30 days of the exercise of the either of these two options and the shares being received by the Subscriber.
If unexercised at the time, both the First and Second Options shall automatically lapse under the following circumstances:
- the ordinary share capital of Lotus Resources plc being admitted to the Alternative Investment Market ("AIM") or any other recognised investment exchange in the UK; or
- any offer for the issued share capital of Lotus being declared or becoming unconditional in all respects.
In addition to the above, Lotus has placed 975,876 new ordinary shares at 2.13p per share, raising a total of £20,786 in cash. These shares have been issued to a founder shareholder of, and a consultant to, the Company, for cash and as settlement of outstanding contractual obligations.
Following this immediate issue of 8,018,129 shares, the Company has 64,245,054 Ordinary Shares of 1p each in issue carrying voting rights
The Directors hold directly and indirectly the following percentages of the enlarged issued share capital:
| Simon Longworth | 4,221,347 | 6.57% |
| Luka Lu | 1,973,587 | 3.07% |
| James Benson | 566,667 | 0.88% |
| Peter McNeill | 166,667 | 0.25% |
The Directors continue to hold a total of 6,928,268 shares in the Company representing 10.78% of the issued share capital of the Company.
The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, Lotus plc under the FSA's Disclosure and Transparency Rules.
Simon Longworth, Chief Executive Officer of Lotus Resources plc, commented:
"These additional funds from a significant European investment house will allow us to move forward with the strategic development of the Company, as well as enabling us to appraise fully a number of new properties available to us for acquisition or Joint Venture with a view to enhancing our portfolio. We expect to start full-scale mining at the Lotus Amgalan JV in spring 2010.
"We currently have fluorspar projects at the exploration, advanced exploration and mining stages, as well as a trading agreement that we are looking to expand next year.
"2009 has been an excellent year for the Company and we have made great strides towards our aim of becoming a profitable fluorspar producer."
9 December 2009
The Directors of the issuer accept responsibility for this announcement.
Enquiries:
| Lotus Resources Plc | |
| Simon Longworth, Chief Executive | Tel: +976 8800 8983 and +86 (0) 1350 107 0840 |
| James Benson, Finance Director | Tel: +44 (0) 7768 242 660 |
| Rivington Street Corporate Finance | |
| Eran Zucker | Tel: +44 (0) 20 7562 3373 |
| Lothbury Financial | |
| Michael Padley / Ron Marshman | Tel: +44 (0) 20 7011 9411 |