EMED Mining to Raise �10 million in Oversubscribed Placing
EMED Mining Public Limited (“EMED Mining”
or the “Company”) has today conditionally placed 50 million new
ordinary shares of 0.25 pence each par value (“Placing Shares”) at
an issue price of 20 pence each (”Placing Price”) with existing and
new shareholders (the “Placing”).� Fox-Davies Capital Limited
(“Fox-Davies”) �acted as lead broker and GMP Securities Europe LLP and
Lewis Charles Securities Limited acted as sub-agents to Fox-Davies in the
Placing, which was significantly oversubscribed.� The Placing will raise �10 million
gross (�9.6 million net after expenses) and the Placing Shares will be admitted
to AIM (“Admission”) subject, inter alia, to shareholders passing
appropriate resolutions at an Extraordinary General Meeting (“EGM")
to be called to approve the capital raising.
The Placing will fund the final review phase of the
Proyecto de Rio Tinto project in Andaluc�a, Spain (the “Rio Tinto Mine”) in
relation to the potential exercise of an option over the acquisition of a 100%
interest in the Rio Tinto Mine, as well as funding exploration work in Slovakia, Georgia
and Cyprus,
and for general working capital purposes.
Mr Harry
Anagnostaras-Adams, Managing Director of EMED Mining said:
“The fantastic success of this placing has been a great
encouragement to our ongoing efforts at EMED Mining. It was significantly
oversubscribed, and retained
strong support from our existing major shareholders, including Oxiana, Resource
Capital Funds, Fidelity International, RMB Australia, and members of
EMED’s management and Directors. This support was complemented by a key
group of new institutional investors, including Altima Partners, Goldman Sachs
International and NewSmith Capital Partners. We also ensured further participation
from high net worth retail investors by working with Lewis Charles Securities
and T1ps.com.
“The financial depth of our shareholder base, combined with the
quality of our funding arrangements, is a key strength in helping us to
evaluate future funding alternatives on the potential exercise of the option
over the Rio Tinto Mine. It also helps to
mitigate some of the financing risks associated with, and is a major vote of
confidence in, the commitment to such a project by a Company of our size. We
believe these investors recognize that, if exercised, the option over Rio Tinto Mine will transform EMED Mining from an
explorer to a major copper producer with significant cash generation within a
short space of time. �Although there can be no guarantees, we continue to
remain optimistic that we will satisfy the remaining conditions precedent that
will allow us to exercise the option and restart the mine.”
Principal
terms of the Placing
The Company is proposing to raise �10 million, before
expenses, by the issue of 50 million new ordinary shares to institutional and
other investors at 20 pence per Placing Share. Pursuant to the terms of a
Placing Agreement, Fox-Davies as lead broker to the Company has agreed
conditionally to use reasonable endeavours to place the Placing Shares with
certain institutional and other investors. Commitments have been received in
respect of all the Placing Shares.
Directors of the Company have participated in the
Placing, with Ronnie Beevor and John Leach each subscribing for 500,000 Placing
Shares.
The Placing Price of 20 pence per Placing Share
represents a discount of approximately 5.4 per cent. to the volume weighted average
price (VWAP) for the month of April
of 21.1 pence per ordinary share, which the Directors consider to
be fair and reasonable given the size of the Placing. The Placing Shares will represent
25% of the enlarged issued share capital of the Company immediately following Admission.
The Placing is conditional upon, among other things,
all resolutions being duly passed at the EGM without amendment in any material
respect, the Placing Agreement not being terminated prior to Admission and Admission
occurring by 27 May 2008 (or such later date as Fox-Davies and the Company may
agree being not later than 27 June 2008).
Fox-Davies acted as lead broker in relation to the
Placing, and will receive a commission and warrants to subscribe for 1,275,150 new
ordinary shares, exercisable at the Placing Price at any time within 5 years
from Admission. GMP Securities Europe LLP and Lewis Charles Securities Limited,
who acted as sub-agents to Fox-Davies in the Placing, will each receive a
commission and warrants to subscribe for 333,438 and 103,263 new ordinary shares
respectively, with the same terms as the warrants to be issued to Fox-Davies.
The Placing Shares will, when issued, rank pari passu
in all respects with the existing ordinary shares in the Company, including the
right to receive dividends and other distributions declared following Admission.
Along with continued
support from the Company’s existing shareholder base, the Placing has introduced
a number of new institutional shareholders to the share register, again
highlighting EMED Mining’s ability to raise capital for the development
of its portfolio of assets. �For this reason, and because a Placing offers
significant savings in both time and costs, the Board concluded, having taken
appropriate advice, that it was not in the best interests of the Company to
make a pre-emptive offer to all shareholders.
Settlement
of the Placing
The Company’s ordinary share capital is
currently admitted to AIM and depositary interests representing such ordinary
shares are settled into the CREST settlement system in de-materialised form.� Application
will be made to London Stock Exchange
for the Placing Shares to be admitted to trading on AIM. �It is expected that,
subject to the passing of the resolutions at the EGM, Admission will become
effective on 27 May 2008.
Effect on the Company’s Capital
Structure
The Placing will increase the Company’s issued
ordinary share capital from 149,625,476 ordinary shares to 199,625,476 ordinary
shares.� Following the Placing, the Company will also have a total of 36.7
million options and warrants on issue with various exercise prices and expiry
dates.
Details of changes in the holdings of significant
shareholders, to the best of the Company’s knowledge, and Directors in
the Company as a result of the Placing are set out in the table below:
Name of Significant Shareholder
|
Shares
subscribed
for
in
the Placing
|
Interest
in EMED
Mining
ordinary shares
following
the Placing
|
%
of issued
ordinary
shares
|
Oxiana
Limited
|
5,820,000
|
23,239,000
|
11.64%
|
Gold
Fields Limited
|
Nil
|
14,796,042,
|
7.41%
|
Resource
Capital Funds
|
15,000,000
|
21,482,667
|
10.76%
|
Fidelity
International Limited
|
3,625,000
|
10,095,000
|
5.06%
|
RMB
Australia Limited
|
2,500,000
|
10,232,902
|
5.13%
|
Altima
Partners
|
8,500,000
|
8,500,000
|
4.26%
|
Directors
|
|
|
|
Ronnie
Beevor
|
500,000
|
5,950,000
|
2.98%
|
Aristidis
Anagnostaras-Adams
|
Nil
|
4,900,000
|
2.45%
|
John
Leach
|
500,000
|
1,210,000
|
0.61%
|
Michael
Price
|
0
|
0
|
0
|
Gordon
Toll
|
0
|
4,666,667
|
2.34%
|
|
|
|
|
�The above interests include both direct and indirect
holdings.
Circular to Shareholders
A circular will be sent to shareholders today providing further information about the Placing and convening a meeting of shareholders, inter alia, to increase the Company's authorised share capital and authorise directors to allot New Ordinary Shares at an EGM. �The Placing is subject, inter alia, to shareholders passing appropriate resolutions (the “Resolutions”) at the EGM to be held on or about 26 May 2008 at the Company’s registered office at 1 Lambousa Street, 1095 Nicosia, Cyprus and Admission to AIM. A copy of the circular will be available to download from the Company’s website at www.emed-mining.com.
Operational
Update
Shareholders are referred to the Company’s 2007
Annual Report, released on 21 April 2008, which is available on the Company’s
website and which will be posted to all shareholders with the Notice of Annual General Meeting to be
held on 4 June 2008. The highlights of the Annual Report are set out below:�
Gold Discovery in Slovakia
- Drilling has
confirmed that EMED Mining has discovered a porphyry gold district in
central Slovakia.
- Gold deposits
have been discovered at the Biely Vrch, Kralova and Slatinske Lazy Prospects
at Detva.
- Several
identified prospects are yet to be drill tested within the Company’s
large (1,107km2) 100%-owned licences in central Slovakia.
- An extensive
drilling program has commenced for 2008 to progress prospects towards
development.
Opportunity to Acquire Rio Tinto Copper
Mine in Spain
- EMED Mining
is pursuing the opportunity to become a significant copper producer via an
option to acquire up to 100% of the historic Proyecto Rio Tinto
(“PRT” or “Rio Tinto Mine”) in Spain.
- Substantial
due diligence has been completed on Rio Tinto Mine and EMED Mining’s
senior management team is now focused principally on preparations for
start up.�
- The Company
plans to seek shareholder approval to exercise the Rio Tinto Mine option,
subject to a number of conditions precedent including government approval.
- Rio Tinto
Mine has the potential to produce 36,000 tonnes of copper-in-concentrate,
generating EBITDA of approximately �40 million per annum based on an
average assumed copper price of US$2.67/lb (current price $4.00/lb).
Copper Exploration in Cyprus
- An
independent review of the Company’s internal study confirmed that
while the project is worthy of further work, development should not be
considered until resources are expanded.
- Further
drilling will be undertaken with the aim of discovering higher-grade
resources within a 20-km radius of the Mitsero processing plant which is
held under option.
Gold Exploration in Georgia
- First-pass
exploration of many gold prospects in the large Upper Racha Licence area
has been completed and priority targets identified for 2008.
- Exploration for Gold
and Base Metals in Turkey:
KEFI Minerals Plc
- The initial
drilling and sampling results at Derinin Tepe and Artvin prospects
respectively during KEFI Minerals’ first year underpin the primary
drilling targets for 2008.
- EMED Mining
retains a 32% shareholding in KEFI Minerals.
Corporate
- The
management team has been expanded and strengthened.
- Cash and
listed shares of �3.3 million as at 31 December 2007.
- Market
capitalisation of �32 million as at 31 December 2007.
Enquiries
EMED
Mining
|
Fox-Davies
Capital
|
RFC
Corporate Finance
|
Parkgreen
Communications
|
Harry Anagnostaras-Adams
|
Richard Hail
|
Stuart
Laing
|
Justine Howarth
|
+357
9945 7843
|
+44
(0)207 936 5230
|
+618
9480 2500
|
+44
20 7851 7480
|
www.emed-mining.com
|
|
|
|
www.emed.tv
|
|
|
|
GMP
Securities Europe LLP
Telephone
+44 (0) 20 7647 2803
James
Hannon
Notes to Editors: About EMED Mining Public Limited
EMED Mining was admitted
to trading on AIM in May 2005 following a placing of its shares. The Company is
based in Cyprus and has a
strong commitment to responsible development of metal production operations in Europe, with an initial focus on copper and gold.
The Group’s region
of interest are the tectonic belts spanning across Europe and over to the Middle East. The strategy is to evaluate exploration and
development opportunities in several jurisdictions throughout this quality
mineral belt and to promote sustainable development practices through
implementation of European Union and other leading-edge international
standards. The Company has, from the outset, strictly implemented its Environmental & Community Policy which
includes:
�
Integrating environmental management into
our business, planning and reporting processes.
�
Promoting a strong environmental ethic
throughout the company and the community.
�
Complying with, as a minimum, all
applicable local and European Union laws and regulations.
�
Communicating with community stakeholders
in a responsible and transparent manner.
EMED Mining has now
established a strong position in the following selected zones:
�
Exploration areas in Slovakia
are centred on a cluster of volcanic centres. Low-detection geochemical methods
are being applied to these areas for the first time together with open pit bulk
mining concepts. The principal targeted mineralisation style is low-grade,
bulk-mineable porphyry gold. The company has announced gold discoveries at Biely Vrch, Kralova
and Slatinske Lazy in Slovakia.
�
The mines in Cyprus and at Rio
Tinto in Spain,
located in the Iberian Pyrite Belt, which is probably among the best known in
the world for its mineral endowment. EMED Mining’s goal is to restart
copper production at its projects in both of these well-endowed, historical
mining districts. Both Spain
and Cyprus
are progressive members of the European Union and EMED Mining has been made to
feel welcome in both host countries. The styles of mineral deposits and
production techniques are similar in both mining districts.
�
EMED Mining’s main prospects in Georgia
are gold prospects within the Upper Racha Licence, the country’s largest
minerals licence with many untested prospects. The Company has confirmed gold resources
at the Zopkhito Prospect and discovered high grade mineralisation at surface at
other prospects (detailed in 2006 Annual Report).
�
Exploration areas in Turkey
were vended into 32%-owned KEFI Minerals Plc which was admitted to AIM in
December 2006. KEFI Minerals owns carefully selected licence areas in Turkey,
as well as an extensive proprietary database of regional and specific
exploration data providing a pipeline of further projects to evaluate. The KEFI
Minerals team has mobilized into the field to explore the company’s
tenements and to expand the portfolio of licenses as opportunities warrant. See
www.kefi-minerals.com.
For further information
on the Company’s activities, visit www.emed-mining.com
or www.emed.tv.
Erica Nelson
Parkgreen Communications
Pegasus House
37-43 Sackville Street
London W1S 3EH
T: +44 (0) 20 7851 7480
F: +44 (0) 20 7494 9085
M: +44 (0) 7974 562 102
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