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