Eurobattery Minerals Proposes Rights Issue of Units of Approximately SEK 46.5 Million

Eurobattery Minerals Proposes Rights Issue of Units of Approximately SEK 46.5 Million

PR Newswire

STOCKHOLM, May 11, 2020

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STOCKHOLM, May 11, 2020 /PRNewswire/ -- The Board of Directors of Eurobattery Minerals AB (NGM Nordic SME: "BAT"; the "Company") has proposed to an Extraordinary General Meeting on 27 May 2020 to carry out a rights issue of at most 1,938,938 units (the "Rights issue"). One (1) unit consists of two (2) shares and one (1) warrant (the "Unit").  The subscription price of a Unit is SEK 24.00, whereby BAT upon full subscription in the Rights issue would obtain approximately SEK 46.5 million before issue costs. Every five (5) existing shares entitle to one (1) unit right and one (1) unit right entitles to subscribe for one (1) unit. The subscription period runs during 29 June - 14 July 2020. The Rights issue, upon full subscription, would increase the number of shares in the Company with 3,877,876, not taking into account the effect of the warrants and of the 750,000 consideration shares that will be issued before the record date of the Rights issue to the existing shareholders of Vulcan Hautalampi Oy ("VHOy"), valued at EUR 200 thousand in total (the "Consideration shares"). In addition, the warrants issue could increase the number of shares in the Company with at most 1,938,938, not taking into account the effect of the Consideration shares. The proceeds from the Rights issue will be used to finance mining activities in Spain and the mining activities in connection to the option to acquire VHOy. A notice to the Extraordinary General Meeting will be announced through a separate press release. The Rights issue is secured to SEK 23.3 million by subscription commitments of SEK 6.0 million, e.g. from the Company's CEO, and the remaining part by underwriting commitments. 

The Rights issue in brief        

Reasons for the Rights issue and use of proceeds

BAT is a mining exploration company listed on NGM Nordic SME. The Company conducts targeted mineral exploration in Europe and has a strategy of finding mining and exploration projects, which have good potential according to the Company. The Company is focusing on commodities leveraging the EV industry (e.g. nickel, copper and cobalt). BAT sees a shift in demand for battery metals and wants to provide Europe with ethical and fully traceable minerals for the electric revolution.

The Company has signed an investment and shareholders agreement including an option for a staged acquisition of 100 per cent of the shares in VHOy, 100 per cent owner of the Hautalampi Nickel-Cobalt-Copper Project, in eastern Finland. The option to acquire VHOy is a further step in building a high-quality exploration and production company with several projects in different stages of advancement throughout Europe. Today, the Company has seven exploration permits for rare earth metals in Sweden and the Corcel project located in La Coruña and the Bibi project located in Ourense, Galicia, northwest Spain.

The proceeds from the Rights issue will be used to finance mining activities in both Corcel, Spain, and the mining activities in connection to the option to acquire the VHOy.This acquisition is an important milestone for BAT as it accelerates the Company's business strategy and shortens the time to being a producer.

"We are very pleased to have secured financing for continued mining activities in both the Corcel and Hautalampi projects to enable us to complete feasibility studies for both the projects during 2021", CEO Roberto Garcia.

Terms of the Rights issue

The Board of Directors of the Company has proposed that an Extraordinary General Meeting on 27 May 2020 decides to carry out a Rights issue of at most 1,938,938 units, not taking into account the effect of the Consideration shares, for subscription in accordance with the shareholders' preferential subscription rights, subject to the approval of the Extraordinary General Meeting on 27 May 2020. The main terms for the Rights issue are presented below.  

Subscription and underwriting commitments

The Rights issue is secured to SEK 23.3 million by subscription commitments of SEK 6.0 million, e.g. from the Company's CEO, and the remaining part by underwriting commitments. External underwriters are entitled to receive their underwriting compensation either in cash amounting to ten (10) per cent of underwritten amount, or the equivalence of twelve (12) per cent of the underwritten amount in new shares by setting off the underwriting compensation against the subscription price in a directed issue to be arranged if needed after the Rights issue.

Indicative timetable

                                  

                                   

11 June 2020

                                   

Proposal regarding the Rights issue by the Board of Directors                                               

                                   

27 May 2020

                                   

Decision regarding the Rights issue by the Extraordinary General Meeting                                          

                                   

23 June 2020

                                   

Last day of trading including the Unit rights                                               

                                   

24 June 2020

                                   

The prospectus is published                                             

                                   

24 June 2020

                                   

First day of trading excluding the Unit rights                                             

                                   

25 June 2020

                                   

Record date for the Rights issue                                             

                                   

29 June-10 July 2020

                                   

Trading period of Unit rights                                         

                                   

From 29 June 2020 until registration at the Swedish Companies Registration Office

                                   

Trading starts in Interim units (BTU)                                          

                                   

29 June-14 July 2020

                                   

The Subscription period for the Rights issue                                                

                                   

17 July 2020

                                   

Announcement of the outcome of the Rights issue                               

 

Advisers

Augment Partners AB is acting as financial advisor to the Company in the Rights issue. Bird & Bird Advokat KB is acting as the legal adviser to the Company.

For further information, please contact:

Roberto García Martínez, CEO

Email: roberto@eurobatteryminerals.com

This information is of the kind that the Company is required to disclose in accordance with the EU's Market Abuse Regulation. The information was issued for publication through the agency of the contact person set out above on May 11, 2020 at 08:00 CEST.

Eurobattery Minerals in brief

Eurobattery Minerals is a mining and prospecting company focused on battery minerals such as nickel, cobalt, copper and rare earth elements. Business activities and operations are conducted exclusively in Europe with a focus on Spain and northern Sweden. The company has one mining license and eight exploration licenses. The headquarters is located in Stockholm. 

Augment Partners AB, tel. +46 8 505 651 72, email: info@augment.se is Eurobattery Minerals' Mentor.

Important information

Publication or distribution of this press release may in some jurisdictions be subject to statutory and legal restrictions and persons in those jurisdictions where this press release has been published or distributed should inform themselves about and observe such restrictions. The information in this press release does not constitute an offer to acquire, subscribe or otherwise trade in shares or other securities in Eurobattery Minerals.

This press release does not constitute an offer to acquire securities in the United States. The securities mentioned herein may not be sold in the United States without registration in accordance with The Securities Act of 1933 or without the application of an exception to such registration. The information in this press release may not be released, published, reproduced or distributed in or to the United States, Australia, Canada, New Zealand, Hong Kong, Japan, Switzerland, Singapore, South Africa, or any other country or jurisdiction where such action is not permitted or such action is subject to legal restrictions or would require further registration or other measures than required by Swedish law. Measures contrary to this instruction may constitute a breach of applicable securities laws

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