RNS Number : 4581G
Patagonia Gold PLC
22 October 2008
22 October 2008
Patagonia Gold Plc
("Patagonia Gold" or the "Company")
Placing to raise £1.845 million
Patagonia Gold, the South American mining explorer, today announces that it has agreed to
place 41,000,000 new ordinary shares of 1p
each in the Company ("Placing Shares") at a placing price of 4.50p per share (the "Placing")
to raise £1.845 million before expenses. The
proceeds from the Placing will be used to finance working capital and exploration
expenditure.
The Placing Shares will be subscribed for by Directors and the Argentinean family.Directors' discloseable interests are as set out
below. The Placing is conditional on admission of the Placing Shares to trading on AIM.
The Directors will subscribe for Placing Shares as follows:
Shareholding Percentage of enlarged
Placing Shares immediately issued share capital
Subscribed following Admission
Director
Carlos Miguens 15,489,800 92,515,376 19.54
William Humphries 1,166,668 11,880,521 2.51
Gonzalo Tanoira 233,700 6,672,147 1.41
The Placing Shares will represent 8.658% of the then enlarged issued share capital of the
Company. The number of Ordinary shares in
issue following the Placing, and the total number of voting rights, will be 473,552,783. The
Placing Shares will rank pari passu with
existing ordinary shares of 1p each in the Company. Application will be made for admission of
the Placing Shares to trading on AIM, and is
expected to take place on 30 October 2008.
The participation of the Directors in the Placing is deemed to be a related party
transaction under the AIM Rules. The independent
Directors consider, having consulted with Strand Partners Limited, the Company's nominated
adviser, that their participation in the Placing
is fair and reasonable insofar as the Company's shareholders are concerned.
As a result of this Placing, the aggregate holding of the Argentinean Directors and their
family associates in the Company has been
increased to 52.30%.
Enquiries:
Patagonia Gold
Richard Prickett/
William Humphries
Tel: +44(0)20 7409 7444
Strand Partners Ltd
Simon Raggett / Angela Peace
Tel : +44(0)20 7409 3494
news service from the London Stock Exchange
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