African Minerals Limited – Cash Placing in excess of US$100 million

African Minerals Limited – Cash Placing in excess of US$100 million

African Minerals Limited - Cash Placing in excess of US$100 million

African Minerals Limited (AMI), the mineral exploration and development company with significant interests in Sierra Leone, West Africa, is pleased to announce that it has raised £63.8 million (approximately US$105.3 million) by way of a cash placing with institutional investors.

A total of 25,538,880 new common shares of the Company have been placed by Renaissance Capital Limited at a price of 250 pence per share.

The proceeds of the Placing are to be used to:

•Undertake further drilling at the Tonkolili iron ore project to delineate further magnetite iron ore mineralisation, proving a JORC compliant resource target of 10 billion tonnes;

•Undertake further drilling with the objective of delineating one billion tonnes of JORC  compliant hematite iron ore in the cap overlying the magnetite deposits;

•Fast track the Definitive Feasibility Study for the Tonkolili iron ore body and the port, rail and power infrastructure projects; and

•Provide general working capital.  
 
Application will be made for, and the Placing is conditional upon, admission of the New Shares to trading on AIM ("Admission"). It is expected that Admission will become effective on or about 15 July 2009.

Subsequent to the Placing the Company will have 213,231,321 common shares in issue.

Commenting on the successful fund raising, Frank Timis, Executive Chairman of African Minerals, said:

"We are delighted with the support that premier institutional investors in North America and the United Kingdom have given the Company. Their commitment fully endorses the quality of the Company’s world class iron ore assets and our experienced executive and operational teams.

The proceeds will allow us to develop the magnetite iron ore resource towards our target of 10 billion tonnes and fast track the Tonkolili Definitive Feasibility Study, to create substantial value for our shareholders. In addition we will undertake engineering work on the infrastructure required to support our iron ore projects.

This is a very large step towards us realising the full potential of our world class iron ore deposit at Tonkolili and the future infrastructure rehabilitation and construction work will in due course provide positive benefits to the local community and the economy of Sierra Leone.”

No Comments

Post a Comment