20th March 2017 LSE: AYM
Placing of New Shares for £0.225 million
Anglesey Mining plc is pleased to announce that it has today agreed to issue 5,000,000 new ordinary shares, representing approximately 2.8% of the Company’s enlarged issued share capital, at 4.5 pence per share in a placement, to raise a total of £225,000 gross and £213,750 net.
The net proceeds of issue will be used for general working capital and for the continued development of the Parys Mountain poly-metallic project in North Wales on which an updated scoping study is being prepared by Micon International Limited and by Fairport Engineering Limited. This study is reviewing capital and operating costs including the use of available second-hand plant to minimise capital expenditure wherever possible. Recent increases in base metal prices over the last few months together with the lower level of sterling compared to the United States dollar are also expected to be positive for the project economics. The study is nearing completion and is expected that the report will be available shortly. When the report is completed Anglesey will commence discussions with interested funding partners with a view to moving the project on to the next stage of development aimed at bringing the mine in to production.
Bill Hooley, CEO, stated “We are very pleased to announce this financing which shows the continued support for Anglesey Mining and for its projects from sophisticated institutional investors in the resource industry. We believe that such support is both positive for the development of the project and as an indicator that investor interest in the base metals sector has returned and that the outlook for the metals that will be produced from Parys Mountain is positive”.
The directors have authorised the issue of the new shares under the dispensation approved at the last AGM on 28th September 2016. The new ordinary shares of 1 pence each to be issued in respect of this transaction will rank pari passu with the existing ordinary shares of the company. The transaction is conditional on the admission of the new ordinary shares to the Official List and to trading on the London Stock Exchange’s main market.
Application will be made for these shares to be admitted to both the Official List and to trading on the London Stock Exchange’s main market for listed securities and it is expected that such admission will become effective and dealings will commence on or 30 March 2017.
Following the allotment of these new ordinary shares becoming unconditional, the issued ordinary share capital of the company will be 177,608,051 ordinary shares of 1 pence each with voting rights; there are no shares held in treasury. This figure may be used by shareholders as the denominator for the calculations which will determine whether they are required to notify their interest in the company, or any change to that interest, under the Financial Conduct Authority’s Disclosure and Transparency Rules.
About Anglesey Mining plc
Anglesey is carrying out development and exploration work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK with a reported resource of 2.1 million tonnes at 6.9% combined base metals in the indicated category and 4.1 million tonnes at 5.0% combined base metals in the inferred category
Anglesey holds a 6% interest and management rights to the Grangesberg Iron project in Sweden, together with a right of first refusal to increase its interest by a further 51%.
Anglesey also holds 11.2% of Labrador Iron Mines Holdings Limited which has direct shipping iron ore deposits in Labrador and Quebec and which has recently completed its Plan of Arrangement. The Plan implements a restructuring of LIMH’s business to preserve its mining assets, continue its mine site activities in a care and maintenance standby mode and position it to refinance an orderly resumption of its iron ore mining activities when economic conditions warrant.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541 981
Danesh Varma, Finance Director +44 (0)207 653 9881
Eliliot Hance, Beaufort Securities +44 (0)207 382 8300