Alba Mineral Resources Regulatory News (ALBA)

21 Sep 2005 14:43

Alba Mineral Resources PLC21 September 2005 Alba Mineral Resources Plc (the "Company" or "Alba") Issue of Equity The Board of Alba announces that it has placed 1,250,000 new ordinary shares of1p each at 8 pence per share to Altius Minerals Corporation ("Altius"). Thegross proceeds of the placing are £100,000. Alba has entered into an agreement with Altius to use the proceeds of theplacing to commence exploration in certain areas in Norway, Sweden and Finland.Alba has agreed to pay Altius a royalty based on the gross sales proceeds of anyminerals sold which are discovered in the exploration areas listed above as aresult of the exploration funded by the placing proceeds. The new ordinary shares will rank pari passu with the existing ordinary shares. Application has today been made for the new ordinary shares to be admitted toAIM. Dealings in the new ordinary shares are expected to commence on 27September 2005. The enlarged share capital of the Company is now 60,312,600 shares of 1 p. Furthermore, the Company has issued a warrant to Altius to subscribe for 937,500ordinary shares of 1p each, exercisable at a price of 9 pence per share.Subject to its terms, the warrant can be exercised at any date from the date ofissue to 4 April 2015. Mr. Lance O'Neill, Chairman commented "We are very pleased to welcome Altius asa shareholder in Alba. The Board considers Altius to be one of the best run andmost successful Junior Explorers in the resources sector and values its interestin Alba. We believe this investment will act as a catalyst for a close workingrelationship between the two companies in the designated areas of interest andthat the Company will benefit from both the experience and contacts that Altiuswill bring to the development of projects". The Company recently completed orientation geochemical and geophysical samplingprogrammes at their Arthrath Nickel-Copper-PGE property near Aberdeen inScotland and is currently undertaking property-wide soil geochemical,prospecting and mapping and geophysical surveys. In addition, a two holeverification drilling programme commenced during August and the Company islooking forward to releasing results from this drilling programme in the comingweeks. End. Alba Mineral Resources (www.albamineralresources.com) is a developing qualityJunior Explorer with a diversified commodity portfolio focussed on theAppalachian-Caledonide trend, a zone extending from the eastern seaboard ofNorth America to Scandinavia. Alba has interests in a number of well researched,promising properties owned in its own right or in conjunction with other partiesand looks to enter into partnerships with other like-minded companies where apooling of resources and expertise has the potential to increase opportunitiesto acquire other licences and prospects. Altius Minerals Corporation (www.altiusminerals.com) has a royalty interest inthe Voisey's Bay nickel district in Labrador, Canada, where production hasrecently commenced. Altius also has a diverse portfolio of mineral explorationproperties and holds strategic stakes in Aurora Energy Inc. and Rambler Metalsand Mining Plc. Enquiries:- Lance O'Neill, Alba Mineral Resources Plc 020 7499 8334Nigel Duxbury, Alba Mineral Resources Plc 020 7499 8334Wilson Robb, Alba Mineral Resources Plc +353 46 905 9959Sandy Archibald, Alba Mineral Resources Plc +353 46 905 9959Liam Murray, City Financial Associates Limited 020 7090 7800 This information is provided by RNS The company news service from the London Stock Exchange