African Battery Metals plc, the AIM listed African focused exploration company developing projects in strategic battery metals is very disappointed to announce that, despite protracted discussions over many weeks with its largest shareholders, it has been unable to secure equity finance from these shareholders on any terms. Given the current adverse market conditions for junior resource exploration companies and after consultation on alternative sources of finance with its professional advisers, ABM has concluded that other sources of equity capital are not currently available to the Company.
Having taken professional advice, ABM intends to approach all of its existing creditors and suppliers, many of the largest of which have expressed a willingness to work with the Company to enable it to continue to trade, with a view to negotiating a settlement of all of the Company's existing liabilities on equal terms, in order to give the Company the time to seek other solutions for the continuation of its trade. Should the Company be able to reach agreement with its creditors, the Directors anticipate that this will necessitate the issue of new shares in the Company in settlement of amounts due. None of ABM's employees and directors will draw salaries and fees until further notice. In the current circumstances, the Directors believe that this approach will deliver the best available outcome to its stakeholders.
Should the Company be unable to reach a satisfactory settlement with its creditors, ABM will be at risk of being unable to continue to trade as a going concern.
Trading in the Company's securities on AIM was suspended today pending clarification of its financial position.
Further announcements will be made in due course.
11 December 2018