Placing and directors' dealings

January 27th, 2016

Related documents

Arian Silver Corporation (“Arian” or the “Company”) is pleased to announce that the Company, in connection with Beaufort Securities, has placed 75 million units (“Units”) at 1 pence per Unit to raise £750,000 (the “Placing”). In addition, directors and employees of the Company have subscribed for 4,787,493 Units at 1 pence per Unit (the “Subscription”) to raise £47,875. The gross proceeds of the Placing and Subscription would therefore amount to £797,875 in aggregate.

Each Unit comprises one new common share (“New Common Share”) and one new share warrant (“Warrant”) which entitles the holder to subscribe for one New Common Share at a price of 1.5 pence. The expiry date of each Warrant will be 27 February 2019.

The Company intends to use the proceeds of the Placing to advance exploration of its mining concessions in Zacatecas, Mexico, as well as for general working capital and corporate purposes.

Jim Williams, Chief Executive Officer of Arian commented: “I am once again excited to be taking Arian forwards in what could be described as a new chapter.

Our cash outflows have reduced significantly in recent months as head office costs have been streamlined, most notably through internal reorganisation and reduction in salaries paid, we have to date generated monthly savings of US$0.1 million.

Looking at 2016, we will have a stronger balance sheet, firstly through the elimination of debt financing, and secondly with the injection of cash from this financing. The market is ripening with opportunities, which we are positioning ourselves to seize.”

The following directors have subscribed for the following Units:

Director No. Units Subscribed Total Resulting Shareholding Total Shareholding as a percentage of enlarged share capital
A J Williams 1,688,702 1,688,702 1.5%
J T Williams 1,000,000 1,500,000 1.3%
T A Bailey 1,314,226 1,314,226 1.2%
J A Crombie 416,665 566,665 0.5%

Employees of the Company have agreed to subscribe for 367,900 Units.

The Placing and Subscription are conditional on the New Common Shares being admitted to trading on AIM (“Admission”). Application will be made to the London Stock Exchange for the 79,787,493 New Common Shares to be admitted to trading on AIM. Admission of the New Common Shares is expected to become effective at 8:00 am on or around 2 February 2016.

Total Voting Rights

Following Admission and assuming no exercise of Warrants, the Company will have 113,694,941 common shares in issue. The Company has no shares in treasury, therefore the figure of 113,694,941 should 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 a change of their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.

Related Party Transaction

The subscriptions for Units by the following directors:

  • A. J. Williams,
  • J. T. Williams,
  • T. A. Bailey, and
  • J. A. Crombie

are considered related party transactions for the purposes of the AIM Rules for Companies. Mr James Cable is not participating in the Placing nor the Subscription. James Cable, having consulted with the Company’s nominated adviser, Cantor Fitzgerald Europe, considers that the terms of the Subscription by the directors are fair and reasonable insofar as the Company’s shareholders are concerned.

For further information please contact:

Arian Silver Corporation
Jim Williams, CEO
David Taylor, Company Secretary
Beaufort Securities
Jon Belliss
+44 (0)20 7382 8300

OR

Yellow Jersey PR Limited
Dominic Barretto
(London) +44 (0)7768 537 739
dominic@yellowjerseypr.com
Cantor Fitzgerald Europe
Stewart Dickson / David Porter / Patrick Pittaway
(London) +44 (0)20 7894 7000
.