Frontier Mining Ltd – Completion of Placing

Frontier Mining Ltd – Completion of Placing

PLACING TO RAISE £4 MILLION - Following the announcement on 17 December regarding the completion of the re-domicile of the holding company of the group to the Cayman Islands, the Board of Frontier announces that it has today completed a round of fundraising in order to provide finance for further investment in the Benkala copper deposit and provide the group with additional working capital.
 
The Company has placed 66,669,340 new ordinary shares of $0.01 each in FML Cayman, the new Cayman Islands holding company, at a price of 6p per Ordinary Share to raise £4,000,161 before expenses.
 
In addition, the Company will issue 1,806,000 new ordinary shares of $0.01 each in FML Cayman at the placing price of 6p to Calder Maloney Pty Ltd, trading as Calder Projects Services (“CPS”).  CPS is the engineering company providing Frontier with the technical design for the SX-EW processing plant for the Benkala Copper Project.  This issue of equity to CPS is in part payment of fees under the contract, as previously announced on 21 June 2010.
 
Application has been made to the London Stock Exchange for the 68,475,340 new shares, which rank pari passu with the Company’s existing issued ordinary shares, to be admitted to trading on AIM on the 23 December 2010.
 
Commenting on the fundraising Erlan Sagadiev, CEO of Frontier Mining, said:
“The funds raised will help to ensure that we maintain sufficient capital resources between receipt of HSBC funding tranches, enabling us to acquire Benkala plant equipment as the project schedule requires.
“I’d like to thank all new shareholders for investing in FML at this time. Your support is greatly valued and together we can look forward to the continued progress of the Company.”

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