Released 22 April 2005
Anglesey Mining plc is pleased to report the success of its Placing, which was announced on 18 April 2005. The fund raising has been completed for the target figure of £464,000 before expenses by way of a private placing of 11,600,000 new ordinary shares at 4 pence per share to 18 institutional and/or sophisticated investors.
Application has been made for the new ordinary shares to be admitted to trading on the main board of the London Stock Exchange and dealings in shares are expected to commence on 22 April 2005. The shares will rank pari passu with existing shares. Following the placing there will be 127,841,384 shares in issue.
The funds from the placing will be utilised towards the re-establishment of the companys Parys Mountain copper and zinc project in Anglesey, North Wales by a re-examination and updating of the earlier Project Plan and Feasibility Study and an initial phase of the planned exploratory drilling programme. The company is already in discussion with drilling contractors and work on site is expected to commence within a matter of weeks. A number of consultants are expected to assist in the Feasibility Study update. The funds will also be applied to working capital, strategic developments and general corporate purposes.
John Kearney, chairman said
Increases in prices of base and precious metals have significantly improved the projected returns from our polymetallic deposit at Parys Mountain. The zinc price rose to a 7 year high in early 2005 and zinc is expected to be in a strong supply deficit for the next 2 years. The new financing will give the company the opportunity it has been waiting for to move the Parys Mountain project forward.
Parys Mountain already has a resource of 6.5 million tonnes at 10% combined metals which, in the first few years of operation, would produce revenues from: zinc (41%), copper (28%), lead (19%), silver (9%) and gold (7%). These ratios would move in favour of copper later in the mine life. We believe there are excellent prospects for the discovery of further resources on the Parys Mountain property.
Golden Prospect plc has declared a 10.4% interest in the company following the placing.
J F Kearney Chairman +1 416 362 6686
Ian Cuthbertson Finance director + 44 1248 361333
|Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
|Phone +44 1248 361333