DJ Eastinco Mining and Exploration PLC Warrant conversion update
RNS Number : 6062O
Eastinco Mining and Exploration PLC
02 June 2020
Eastinco Mining & Exploration PLc
Warrant conversion update
02 June 2020
London, England- Eastinco Mining & Exploration PLC (EM.P) is pleased to announce that following its letter to shareholders dated 14 May 2020 requesting the exercise of warrants that shareholders have thus far converted approximately 48 million shares equivalent of warrants with a gross exercise consideration of approximately GBP720,000. Investors exercising warrants to date have been offered new four year warrants with a 3 pence exercise price for each warrant exercised.
The management "Concert Party". have exercised warrants accounting for approximately one-third of the total contributed consideration or approximately GBP250,000 to improve working capital and reduce company debt, including the reduction of the Augustin facility and elimination of back pay for management at the subsidiary company. All management will continue to refrain from taking salaries, for the time being, to preserve cash. Thus approximately GBP470,000 of gross cash consideration will be received by the Company from the exercise of the warrants expiring in September 2020.
As stated previously, the Company intends to use the capital:
1. To supplement the working capital to complete the wash plant, begin mining, and generate positive cash flows at the Kuaka mine site;
2. To reduce outstanding debt and/or payables to suppliers and/or company management;
3. For exploration work to identify the safest and most efficient sourcing of ore at both Kuaka and Huye sites;
4. To progress pending license applications on highly exciting prospective sites; and,
5. To establish reserve capital to ride out any demand or supply shocks from the COVID-19 situation.
This announcement was delayed to allow for the subscription by new shareholders. We anticipate that further warrant exercises may occur in the next few days and we will update shareholders and the market as to the exact number of new shares created accordingly.
We are extremely proud of the shareholder response to our request for warrant conversions by existing and new shareholders. We are excited to make progress and look forward to updating all shareholders over the course of 2020 as we target significant milestones including the wash plant completion and cash flow from operations.
Eastinco Mining & Exploration Plc: email@example.com
Charles Bray, Executive Chairman
AQUIS E XCHANGE CORPORATE ADVISER:
Alexander David Securities Limited
David Scott -Corporate Finance
James Dewhurst - Corporate Broking
Telephone: +44 (0) 20 7448 9820
49 Queen Victoria Street, London EC4N 4SA
Follow us on twitter: @eastinco
 The Concert Party has been deemed to include the following parties: Charles Bray, Daniel Hogan, Edlin Holdings, Stephan Knoef, and Michael Staten.
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(END) Dow Jones Newswires
June 02, 2020 02:00 ET (06:00 GMT)