Georgian Mining Corporation Oversubscribed Placing to Raise USD7 million (9004F)
May 23 2017 - 2:01AM
UK Regulatory
TIDMGEO
RNS Number : 9004F
Georgian Mining Corporation
23 May 2017
23 May 2017
Georgian Mining Corporation
Oversubscribed placing and subscription to raise $7 million
Georgian Mining Corporation ('GEO' or the 'Company') is pleased
to announce that it has raised US$7 million (GBP5,463,942) by way
of a significantly oversubscribed placing and subscription of
34,149,638 new ordinary shares of no par value in the capital of
the Company ('the Placing Shares'), with new and existing
shareholders in the Company, at a price of 16 pence per Placing
Share ('the Placing').
The net proceeds of the Placing will be primarily used to expand
the resource development at the Kvemo Bolnisi copper and gold
project in Georgia ('KB' or 'the Project') beyond the existing JORC
estimate of 2.22 Mt @ 0.8% Cu and 0.1 g/t Au as well as to advance
regional exploration. The Project is located on the Tethyan Belt,
which is host to multiple high grade copper-gold deposits and
producing mines in Turkey, Armenia, Serbia and Georgia. The Company
believes KB has the potential to host one large epithermal
copper/gold deposit and a three phase resource development
programme is underway to reach the Company's 50Mt exploration
target for KB, which is just one of 14 target areas identified
within the Company's 860 sq km licence area.
Having achieved and exceeded its stage 1 target of 1-2Mt of
combined copper-gold sulphide and gold oxide mineralisation, GEO is
currently undertaking drilling to realise its stage two resource
target of 3-5 Mt in 2017. Results to date have delivered
exceptional copper and gold grades, including 16m @ 15.4% Cu from
47m, including 4.95m@ 40.50% Cu. In tandem with its resource
development work, the Company is also working to deliver proof of
concept copper and gold production using its JV Partner's
processing infrastructure, which has excess capacity and is located
in close proximity to KB. This will de-risk the project by defining
the processing route for the ore, provide cash flow to contribute
towards further exploration and strengthen the relationship with
the Company's partner. Discussions with the Company's JV partner
are ongoing and further updates will be made on completion.
GEO's Managing Director, Greg Kuenzel said, "KB continues to
deliver excellent grades from drilling which validate our belief
that we are developing a significant copper and gold deposit. The
second half of 2017 is set to be very active with work on both an
upgraded resource and proof-of-concept production on track to be
delivered this year. This, we believe, will put the Company on the
map as a significant Tethyan Belt play."
Placing Shares
The Placing Shares will rank pari passu in all respects with the
existing ordinary shares of no par value in the capital of the
Company. Application will be made to the London Stock Exchange for
the Placing Shares to be admitted to trading on AIM ('Admission').
It is expected that Admission will become effective on or around 26
May 2017.
As a result of the issue of the Placing Shares as described
above, the issued share capital of the Company now consists of
114,574,491 ordinary shares of no par value.
Warrants
The Company has agreed to issue warrants over a total of 348,602
ordinary shares in the Company exercisable at 20p per share for a
period of two years from date of grant to SP Angel Corporate
Finance LLP (Nominated Adviser and Joint Broker) and Shard Capital
Partners LLP (Joint Broker).
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
**ENDS**
For further information please visit www.georgianmining.com or
contact:
Greg Kuenzel Georgian Mining Company Tel: 020 7907
Corporation 9327
Ewan Leggat S. P. Angel Corporate Nomad & Tel: 020 3470
Finance LLP Broker 0470
Damon Heath Shard Capital Partners Joint Broker Tel: 0207
LLP 186 9950
Elisabeth St Brides Partners PR Tel: 020 7236
Cowell Ltd 1177
Frank Buhagiar St Brides Partners PR Tel: 020 7236
Ltd 1177
About Georgian Mining Corporation
Georgian Mining Corporation has 50% ownership and operational
control of the Bolnisi Copper and Gold Project in Georgia, situated
on the prolific Tethyan Belt, a well-known geological region and
host to many high grade copper-gold deposits and producing mines.
The Bolnisi licence covers an area of over 860 sq km and has a 30
year mining licence with two advanced exploration projects; Kvemo
Bolnisi and Tsitsel Sopeli. These projects are proximal to existing
mining operations which are owned by the Company's supportive joint
venture partner. Georgia has an established mining code and is a
jurisdiction open to direct foreign investment.
The Company is developing the project in three phases:
-- Phase 1: H1 2017 target to delineate a minimum of 1-2 Mt to
support initial spare capacity (now achieved and exceeded)
-- Phase 2: 2017 target to delineate a 3-5 Mt resource of
combined copper-gold sulphide and gold oxide mineralisation (on
target)
-- Phase 3: Long term target - to delineate a resource of 50Mt+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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