Placing for up to Â£1,100,000
Tuesday, July 17th, 2007
Anglesey Mining plc announces that it has arranged to raise up to Â£1,100,000 before expenses by way of a private placing of new ordinary shares at 8 pence per share. The new shares will rank pari passu with the existing shares in issue. Application will be made for the new ordinary shares to be admitted to trading on the main board of the London Stock Exchange.
The funds from the placing will be applied towards the cost of recent and ongoing work at the companyâ€™s two projects: the Parys Mountain base metal deposit in Anglesey, UK and the Labrador Iron project in Canada. Exploration, development and feasibility work on both these projects is continuing.
At Parys Mountain, the company is refining the recent Micon Scoping Study for White Rock and is commencing design and planning for the White Rock decline. Using the proceeds from this placing, it is expected that the decline portal will commence within a few weeks. The company is also planning the next stage of the feasibility study which will commence later in the summer.
In Labrador, work continues on environmental base line studies; planning and permits are in place for a late summer exploration programme and critical work necessary for permit applications continues. Part of the proceeds of the placing will be used to progress these activities. The company is continuing to review options for financing the Labrador project including a separate flotation of the Canadian operations.
The funds will also be applied to working capital and general corporate purposes.
The company will require further financing for the development of the properties and is in discussions regarding forms of funding and financial instruments that should reflect the medium and long term growth in the companyâ€™s prospects.
John Kearney, the companyâ€™s chairman said â€œWe are pleased that we have secured this current round of funding that will allow us to continue the development of our projects both of which are getting closer to production. Since our last placing in January 2006, we have made very significant progress and we hope to be able to more than emulate that progress in the next few months so that the companyâ€™s market valuation will better reflect the value of the underlying assets.â€