.21 Mar 2014 07:10
RNS
21 March 2014 AIM:AMA
Amara Mining plc
("Amara" or "the Company")
PROPOSED PLACING TO RAISE £18.2 MILLION (US$30.0 MILLION) AND PROPOSED OPEN OFFER OF UP TO £4.2 MILLION (US$6.9 MILLION)
Amara, the AIM listed West African focused gold mining company, is pleased to announce a proposed placing and subscription ("the Placing") of 107,058,823 shares ("the Placing Shares") to raise £18.2 million (approximately US$30.0 million) before expenses and a proposed open offer (the "Open Offer") of 24,468,439 shares ("the Open Offer Shares") to raise up to £4.2 million (approximately US$6.9 million) at a price of 17.0 pence per share (the "Issue Price") for total proceeds of up to £22.3 million (approximately US$36.9 million). The completion of the Placing is conditional upon inter alia the approval of shareholders in a general meeting of the Company (the "General Meeting") and admission of the Placing Shares to trading on AIM. The Placing is not conditional upon the Open Offer.
Highlights
· Amara is fully funded to the point of delivering a Pre-Feasibility Study ("PFS") for its Yaoure Gold Project ("Yaoure") in Côte d'Ivoire in Q1 2015
· £18.2 million (approximately US$30.0 million) to be raised by way of a Placing of 107,058,823 new ordinary shares ("Shares") with certain existing and new investors at a price of 17.0 pence per share
· Up to an additional £4.2 million (approximately US$6.9 million) to be raised by way of an Open Offer, enabling existing shareholders not participating in the Placing to participate in the fundraising on the same terms
· The Issue Price of 17.0 pence per share represents a discount of 1.4 per cent. to the close price of 17.25 pence per share on 20 March 2014
· Funds from the Placing to be used for:
o the further exploration of Yaoure to upgrade the existing Inferred Mineral Resources to the Measured and Indicated categories, expand the current in-pit Mineral Resources, and to deliver a PFS;
o the further optimisation of the Company's Baomahun Gold Project ("Baomahun"); and
o general working capital purposes.
· Additional funds raised from the Open Offer to be applied to support a Bankable Feasibility Study ("BFS"), as well as to further optimise Baomahun and for general working capital purposes
Unless otherwise defined, capitalised terms in this announcement shall have the meaning ascribed to them in the definitions section at Appendix I of this announcement.
John McGloin, Executive Chairman of Amara, commen
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