La Mancha Confirms Completion of Confirmatory Due Diligence and Receipt of Internal Approvals Necessary to Complete its Investment in SRG
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La Mancha Confirms Completion of Confirmatory Due Diligence
and Receipt of Internal Approvals Necessary to Complete its
Investment in SRG
PRESS RELEASE FOR IMMEDIATE RELEASE
Montreal, Quebec, March 21, 2022 - SRG Mining Inc. (TSXV: SRG) (“SRG” or the “Company”)
announced today that La Mancha Fund SCSp (the “Fund”), a fund advised by La Mancha Capital
Advisory LLP (“La Mancha”), has completed its confirmatory due diligence and has received the
internal approvals necessary to complete the private placement in SRG.
The private placement now remains subject only to customary closing conditions, including TSX
Venture Exchange approval, and is expected to close on or before March 31, 2022.
About the Fund, La Mancha and the Terms of the Private Placement
On March 18, 2022, La Mancha Investment S.à.r.l (the “Subscriber”) entered into a subscription
agreement (the “ Subscription Agreement”) with SRG pursuant to which the Subscriber has
agreed to subscribe for 22,442,941 common s hares in the capital of SRG (the “ Common
Shares“) at a price of C$0.56 per Common S hare for aggregate cash consideration of
$12,568,047.
The Subscriber does not otherwise currently own or have control or direction over any Common
Shares. Following completion of the private placement, the Subscriber will beneficially own and
have control and direction over an aggregate of 22,442,941 Common Shares, representing 19.9%
of the currently issued and outstanding Common Shares.
At the closing of the private placement, the Subscriber and SRG will enter int o an investment
agreement, upon which the Subscriber or an affiliate will be granted the right to nominate two
directors to SRG’s board as well as certain anti-dilution and registration rights.
The Common Shares to be acquired by the Subscriber on completion of the private placement
have been acquired for investment purposes. In the future, the Subscriber may, from time to time,
increase or decrease its investment in SRG through market transactions, private arrangements,
treasury issuances or otherwise.
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The Subscriber is a wholly-owned subsidiary of the Fund. The Fund is a Luxembourg-based deep
value fund focused on investments in the precious metals and energy transition space. La Mancha
advises the Fund on strategic investments made in publicly listed and private exploration, royalty
and mining companies with a global outlook. La Mancha is a long -term minded investor, with a
mandate to support mining companies to achieve sustained growth by providing long-term equity
capital as well as operational and board level expertise, to further portfolio company performance
and expansion.
La Mancha is an Appointed Representative of G10 Capital Limited, which is authorised and
regulated by the Financial Conduct Authority (FRN 648953).
The Subscriber’s head office is located at 31-33 Avenue Pasteur L-2311 Luxembourg.
The Subscriber will file an early warning report in accordance with applicable Canadian securities
laws, which will be available under SRG’s profile on the SEDAR website at www.sedar.com, and
may also be obtained by contacting Vincent Benoit as provided for below.
About SRG Mining
SRG Mining is a Canadian -based mining company focused on developing the Lola Graphite
Project located in the Republic of Guinea, West Africa. The Lola Graphite Project has Probable
Reserves of 42Mt at a grade of 4.2% Cg. SRG aims to develop a fully integrated source of battery
anode material to supply the European lithium-ion and fuel cell markets. With attractive operating
costs, proximity to European end-markets and strong ESG credentials, SRG is poised to become
a reliable supplier while promoting sustainability and supply chain transparency. SRG is committed
to generating sustainable, long-term benefits that are shared with the host countries and communities
where it operates.
For additional information, please visit SRG’s website at www.srgmining.com and La Mancha’s
website at www.lamancha.com
Contact:
Matthieu Bos Vincent Benoit
President & CEO SRG Mining Inc. Partner & co-CIO
Email: [email protected] Email: [email protected]
SRG Mining Inc.
1320 Graham, Suite 132
Ville Mont-Royal, Québec
H3P 3C8
La Mancha Capital Advisory LLP
14 Grosvenor Street
London
W1K 4PS
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of
the TSXV) accepts responsibility for the adequacy or accuracy of this release.
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FORWARD-LOOKING STATEMENTS
This press release contains “forward -looking information” within the meaning of Canadian
securities legislation. All information contained herein that is not clearly historical in nature may
constitute forward -looking informatio n. Generally, such forward -looking information can be
identified by the use of forward -looking terminology such as “intend”, “aims”, “become”,
“committed” or variations of such words and phrases or state that certain actions, events or results
“will”, “may”, “could”, “would” or “might” occur. Forward -looking information is subject to known
and unknown risks, uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be materially diffe rent from those
expressed or implied by such forward -looking information, including but not limited to: (i) the
private placement not being completed as a result of failure to satisfy the conditions (ii) volatile
stock price; (iii) the general global marke ts and economic conditions; (iv) the possibility of write -
downs and impairments; (v) the risk associated with exploration, development and operations of
mineral deposits and mine plans for the Company’s mining operations; (vi) the risk associated
with esta blishing title to mineral properties and assets including permitting, development,
operations and production from the Company’s operations being consistent with expectations and
projections; (vii) fluctuations in commodity prices, finding offtake takers an d potential clients or
enforcing such agreements against same and other risks and factors described or referred to in
the section entitled “Risk Factors” in the MD&A of the Company and which is available at
www.sedar.com, all of which should be reviewed in conjunction with the information found in this
news release.
Although the Company has attempted to identify important factors that could cause actual results
to differ materially from those contained in the forward -looking information, there may be other
factors that cause results not to be as anticipated, estimated or intended. There can be no
assurance that such forward-looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in suc h forward-looking information.
Such forward-looking information has been provided for the purpose of assisting investors in
understanding the Company’s business, operations and exploration plans and may not be
appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-
looking information. Forward-looking information is given as of the date of this press release, and
the Company does not undertake to update such forward -looking information except in
accordance with applicable securities laws.