Placing
of new shares
- 5.25 million in new shares
placed at 20p, raising �1.05 million
- A 12-month warrant attached to
each share exercisable at 35p
- The funds to be used on an
expanded drilling programme in Ireland
The Board of Connemara (AIM: CON) is pleased to
announce an institutional placing of 5,250,000 new shares at a price of 20p
representing 20.42% of the enlarged share capital. The Placing was arranged by Optiva Securities and has been performed under existing
share allotment authorities. Allocated to each new share is a 12 month
warrant to buy one share exercisable at a price of 35p.
Should the Connemara price stay at or above 35p for five consecutive trading
days during the exercise period, the directors can call for early
conversion. If the warrants are not then exercised, they will lapse after
21 days.
The funds will be used for an expanded exploration programme in Ireland. Currently five drill rigs are
working on the Stonepark zinc discovery in Limerick
where up to 65 holes will be drilled this year. Diamond drilling has also
commenced in the Thurles area close to the Lisheen zinc mine. This is to follow up targets
identified in earlier prospecting. Work is ongoing on our Mallow block of
licences,
adjacent to the old Silvermines lead mine, while
options on the Lough Sheelin
block are being examined.
Application will be made for the placing shares to be
admitted for trading on AIM. Dealing is expected to commence on or about
the 3rd of March 2011. Completion of the placing is
conditional amongst other things on such admission becoming effective.
John Teeling,
Chairman, commented:
"World demand for zinc
continues to grow. Prices are rising. We have excellent ground in
Ireland in Limerick, where our partner Teck has an
expanded exploration programme as well as at
locations near the Lisheen mine and the old Silvermines mine, both in Tipperary.
These funds will expand our exciting 2011 drilling programme."
Enquiries:
Connemara Mining
Company Plc
John Teeling,
Chairman
+353 (0)1 833 2833
Jim Finn, Financial
Director
Smith &
Williamson Corporate Finance
Nick
Reeve
+44 (0) 117 3762213
Barrie
Newton
+44 (0) 117 3762213
Optiva Securities Ltd
Jason
Robertson
+44 (0) 203 137 1906
Jeremy
King
+44 (0) 203 137 1904
College Hill
Nick Elwes
+44 (0) 207 457 2020