On 10 November 2009 the Board of Serabi announced that the Company had placed in aggregate 144,534,500 Ordinary Shares at a price of 1.5 pence per Ordinary Share to raise �2,168,017 (before expenses) to fund the Company's next stage of exploration at the Palito mine.  The Placing was completed on 16 November 2009.  The Company also announced that it had arranged an unsecured �300,000 convertible loan facility (the "Convertible"), convertible into up to 20,000,000 New Ordinary Shares at the Placing Price (excluding accrued interest).  In addition, the Company issued 5,054,551 Ordinary Shares to certain suppliers and consultants in satisfaction of outstanding liabilities of �77,503 and 6,394,467 Ordinary Shares to the Directors in settlement of accrued but unpaid remuneration and benefits under the terms of their existing service contracts amounting to �95,917 at the Placing Price.

 

As the Board considers it important that, where reasonably practicable, Shareholders have an opportunity to participate in any fundraising at the same price, on 17 November 2009 it was announced that the Board of Serabi proposed to raise up to �317,274 (before expenses) by way of the Open Offer to be made to Eligible Shareholders of up to 21,151,613 New Ordinary Shares at a price of 1.5 pence per Offer Share.   The Circular was sent to Shareholders on 17 November 2009.

 

The Open Offer closed at 3.00p.m. on 2 December 2009.  Under the Open Offer, valid applications were received from Eligible Shareholders in respect of their Open Offer Entitlements for, in aggregate, 12,505,455 Offer Shares, representing approximately 59..12 per cent. of the 21,151,613 Offer Shares offered pursuant to the Open Offer. As a consequence, 8,646,158 Offer Shares were available pursuant to the Excess Application Facility. Valid applications pursuant to the Excess Application Facility were received in respect of 35,022,756 Excess Shares, representing approximately 405 per cent. of the Excess Shares available. Accordingly, applications for Excess Shares under the Excess Application Facility have been scaled back as described in the Circular, at the discretion of the Directors in favour of smaller applicants. In aggregate, 21,151,613 New Ordinary Shares were issued pursuant to valid applications from Eligible Shareholders in respect of their Open Offer Entitlements and the Excess Application Facility. The Open Offer was not conditional on subscription in full of the Offer Shares.

 

Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence on AIM at 8.00 a.m. on 9 December 2009. The Enlarged Issued Share Capital of Serabi following Admission will be 317,274,196 Ordinary Shares in aggregate. The New Ordinary Shares will, when issued and fully paid, rank pari passu in all respects with the Existing Ordinary Shares including the right to receive all dividends and other distributions declared, made or paid after the date of their issue.

 

 

 

 

Clive Line, Finance Director Tel: 020 7246 6830 Mobile: 07710 151 692

Website: www.serabimining.com

 

Roland Cornish / Michael Cornish Tel: 020 7628 3396

 

Simon Robinson Tel: 07593 340 107

 

 

This announcement is for information only and shall not constitute an offer to buy, sell, issue, or subscribe for, or the solicitation of an offer to buy, sell or issue, or subscribe for any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This announcement has been issued by and is the sole responsibility of Serabi.