* Assuming full take up of entitlements under the Open Offer.

 

 

 

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

 

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.

 

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.

The Board considers it important that, where reasonably practicable, Shareholders have an opportunity to participate in the fundraising at the Placing Price. Accordingly, the Board proposes to raise up to �317,274 (before expenses) by way of an open offer to be made to Eligible Shareholders of up to 21,151,163 New Ordinary Shares at the Placing Price. The Open Offer is not underwritten.

 

In the event that the Open Offer is over-subscribed the applications will be scaled back at the discretion of the Directors. In particular, in the event that any Eligible Shareholder applies for a proportionately larger number of Offer Shares compared to other applicants that Eligible Shareholder's application will be scaled back so as to allow the smaller applicants to participate. To the extent that Offer Shares are not subscribed for by Existing Shareholders, the Company reserves the right to offer such shares to third parties.

 

The Offer Price represents a discount of 25 per cent. to the Closing Price of 2 pence per Existing Ordinary Share on 16 November 2009, being the last dealing day prior to the publication of this announcement.

 

The Offer 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.

 

The Open Offer closes at 3.00 p.m. on Monday 2 December 2009. Application will be made to the London Stock Exchange for the Offer Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Offer Shares will commence on AIM at 8.00 a.m. on 9 December 2009. A summary timetable is set out in Appendix I.

 

The Open Offer is subject to Admission becoming effective by no later than 8.00am on 16 December 2009 or such later time and/or date as the Company may determine (but, in any event, not later than 23 December 2009).

 

The Open Offer is not conditional on subscription in full of the Offer Shares. If the Open Offer is not subscribed in full, the Directors will allot and issue those Offer Shares for which valid applications have been received.

 

An Eligible Shareholder's right to subscribe for the Offer Shares in respect of the Open Offer is not tradeable.

 

In connection with the Open Offer, the Company is today publishing a Document containing full details, including the terms and conditions, of the Open Offer.   The Document itself does not include an Application Form to enable Eligible Shareholders to participate in the Offer.  Application  Forms  are personalised  for  each  Eligible Shareholder and have been sent,  together with the Document by  mail to  each shareholder's  address of  record in the shareholders register as at 5.00 p.m. on 16 December 2009. For Eligible Shareholders who  hold shares  in  the Company  through  a  nominee,  the Application Form and Document  will be  sent to  the nominee.

 

Assuming full subscription under the Open Offer, the Open Offer will raise a further �317,274 (before expenses) payable by the Company. The Company intends to use the net proceeds of the Placing and Offer (amounting to approximately �2,326,291, assuming full subscription under the Open Offer) to commence the first stage of exploration and further evaluation of the 18 prioritised anomalies identified within the surveyed area and to fund the general working capital requirements of the Group.

 

Copies of the Document will be available from the Company's website (www.serabimining.com) free of charge in accordance with the requirements of Rule 26 of the AIM Rules.

 

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

 

 

The technical information contained within this announcement has been reviewed and verified by Michael Hodgson as required by the AIM Guidance Note on Mining, Oil and Gas Companies dated June 2009. Michael Hodgson is an Economic Geologist by training with 20 years experience in the mining industry. He has a BSc (Hons) Geology, University of London, an MSc Mining Geology, University of Leicester and is a Fellow of Institute of Materials, Minerals and Mining and a Chartered Engineer of the Engineering Council of UK.

 

 

 

The dates set out in the timetable of principal events above and mentioned throughout this announcement may be adjusted by the Company, in which event the details will be notified to the London Stock Exchange and, where appropriate, to Shareholders.