Baobab Resources [BAO:AIM] – Baobab announces warrants of exercise and appointment of Non-Executive Director

baobabBaobab Resources plc (BAO:AIM) has announced that further to the announcement of 6 July 2012, Redbird Investments Ltd. (‘Redbird’), a fully owned investment vehicle of African Minerals Exploration & Development SICAR SCA (‘AMED’ or ‘the Fund’) has exercised the 25,000,000 warrants over the Company’s Ordinary Shares of 1p each (“Ordinary Shares”) at an exercise price of 12p per share that were granted as part of the Fund’s initial investment of £4 million in Baobab. By exercising these warrants the Fund’s total investment in the Company has increased to £7 million.

Application will be made to the London Stock Exchange for the 25,000,000 new Ordinary Shares to be admitted to trading on AIM and it is expected that Admission will become effective and that trading will commence on 5 February 2013.

As mentioned in the announcement dated 6 July 2012, the Fund has the right to appoint a second nominee to the Company’s board (in addition to Dr. David Twist). Upon the exercise of the 25,000,000 warrants, Baobab Resources plc has also announced the appointment of Mr. Carlo Baravalle as a Non-Executive Director to the Company with immediate effect.

Mr. Carlo Baravalle, aged 52, holds an MBA from INSEAD and brings a wealth of corporate finance experience to the board.In 2007 Carlo launched a c.$150 million private equity fund of funds aimed mainly at Italian institutional investors that successfully invested in mid-caps, restructuring funds and co-investments globally. In 2012 he co-founded AMED with Rudolph de Bruin and David Twist. The Fund is currently investing in mineral exploration and development opportunities, predominantly in Africa.

Commenting today, Jeremy Dowler, Baobab’s Chairman, said:

‘We are delighted to welcome Carlo to the board and his considerable experience in senior roles within international corporations together with his expertise in raising funds in international markets will be of great benefit in the future. The funds raised through this exercise of warrants ahead of the expiry date is a further vote of confidence in the
Company and will greatly assist in the final planning of the Definitive Feasibility Study. This will commence immediately after the publication of the Pre-Feasibility study which is now due for release in the second half of February 2013.’