Marula Mining PLC — M&A Activity 2021

May 17, 2021

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RNS Number : 7415Y

All Star Minerals PLC

17 May 2021

17 May 2021

All Star Minerals Plc

("All Star" or the "Company")

Heads of Terms Signed with Two Companies for the

Acquisition of Diamond and Gemstone Assets

All Star (AQSE:ASMO), an Investing Company listed on the AQUIS Stock Exchange, is pleased to announce that it has signed exclusive, non-binding Heads of Terms ("HoT") with two separate companies, one with a suite of gemstone assets (the "Gemstone Company") and one with a suite of diamond assets (the "Diamond Company"). The HoT outline the principal commercial terms upon which All Star proposes to acquire the entire issued share capital of either company.  

Highlights

·    The Gemstone Company has a suite of gemstone assets including rubies, sapphires and tsavorite

·    The Diamond Company has a suite of assets providing exposure to high-quality white and coloured diamonds

·    All Star believes each company has the potential to deliver significant returns to shareholders

·    The Company is currently carrying out appropriate due diligence processes for both companies and this, along with market research and shareholder feedback, will help inform the next steps

·    All Star is focused on environmentally and socially responsible mining practices as well as transparent routes to market, and ensuring that the acquisition of either company will allow the Company to deliver on these goals will form part of the due diligence process

·    The management team has significant experience and expertise in the diamond and gemstone industry

Following the fundraises completed in 2020, the Company continues to prudently manage its working capital positions. The Company will need to seek further funding to undertake the due diligence required to advance either of the acquisitions and there is no certainty that either of the acquisitions under review will complete.

Interim CEO, Ian Harebottle, said:

"I am delighted to announce that we have signed HoT with both these companies. The Board, which has significant expertise in the diamond and gemstone industry, believes that neither company will require significant capital and/or operating expenditure to deliver strong returns. This will be tested via the planned due diligence programmes, but will make either company an extremely attractive acquisition opportunity should these assumptions prove to be true,  potentially setting ASMO apart from most of the other companies already operating within this space.

"At All Star, we are heavily focused on ensuring that both the environment and any communities close to our operations are positively impacted by the Company and our activities. We also intend to lead the way in transparent, ethical routes to market. We believe that this is not only important to us and our shareholders, but also to potential retailers and their customers.

"Both the Gemstone Company and the Diamond Company are of a size which will enable us to build a boutique style company that not only focuses on shareholder returns but provides us with the perfect opportunity to create ethical, traceable, routes to market.

"We are now focused on initiating and completing the due diligence processes for each company and I look forward to keeping shareholders updated with our progress and next steps."  

The Directors of All Star are responsible for the content of this announcement.

This announcement contains inside information for the purposes of UK Market Abuse Regulation, and has been arranged for release by Ian Harebottle, Interim Chief Executive Officer of the Company.

Enquiries:

All Star Minerals Plc

Ian Harebottle

Interim CEO

Contact via Blytheweigh Financial PR and IR (details below)

AQSE Corporate Adviser:

Cairn Financial Advisers LLP

Liam Murray

020 7213 0880

Broker

SP Angel Corporate Finance LLP

Ewan Leggat / Charlie Bouverat

020 3470 0470

Blytheweigh Financial PR and IR

Tim Blythe and Megan Ray

020 7138 3204

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

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