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10 Oct 2008 07:00
For immediate release
10 October 2008
African Minerals Limited
("African Minerals" or the "Company")
Cash Placing
African Minerals Limited (AIM:AMI), the mineral exploration company with significant interests in Sierra Leone, West Africa, is pleased to announce that it has raised £20,000,025 by way of a cash placing (the "Placing") with institutional investors.
A total of 26,666,700 new common shares of the Company (the "Placing Shares") have been placed jointly by Mirabaud Securities Limited ("Mirabaud") and Renaissance Capital Limited ("Renaissance") at a price of 75 pence per share.
Mirabaud and Renaissance acted as joint lead managers and joint bookrunners in the Placing.
The proceeds of the Placing are to be used as follows:
Application will be made for, and the Placing is conditional upon, admission of the Placing Shares to trading on AIM ("Admission"). It is expected that Admission will become effective on 15 October 2008.
Subsequent to the Placing the Company will have 186,767,441 common shares in issue.
Commenting on the successful Placing, Frank Timis, Executive Chairman of African Minerals, said:
"We are delighted with the endorsement that our premier institutional shareholders have given the Company in this fund raising, especially given the prevailing market conditions.
The proceeds of the placing will allow us to progress the development of our flagship Tonkolili project into the feasibility study stage and will allow us to undertake extensive engineering and construction work on key infrastructure in Sierra Leone to support our iron ore projects.
The funds generated from this placing will enable the Company to unlock further shareholder value by advancing what I believe to be a world class asset.
I also appreciate the invaluable brokerage and advisory support provided to the Company by Mirabaud, Renaissance and Canaccord Adams. Their combined expertise has ensured the success of this placing."
Enquiries:
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African Minerals Limited |
Tel: +44 (0) 20 7849 3002 |
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Frank Timis |
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Roy Pitchford |
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Canaccord Adams Limited |
Tel: +44 (0) 20 7050 6500 |
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Mike Jones |
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Mirabaud Securities Limited |
Tel: +44 (0) 20 7878 3360 |
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Rory Scott Pav Sanghara |
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Renaissance Capital Limited Simon Matthews
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Tel: +44 (0) 20 7367 8958 |
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Citigate Dewe Rogerson |
Tel: +44 (0) 20 7638 9571 |
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Martin Jackson |
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George Cazenove |
Notes:
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1.
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Certain institutional shareholders participating in the Placing are believed to be Substantial Shareholders under the AIM Rules and as a result are considered to be Related Parties. The directors consider, having consulted with its nominated advisor, Canaccord Adams Limited, that the terms of the transactions are fair and reasonable insofar as shareholders are concerned.
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2.
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This announcement does not constitute an offer to sell or issue, or the solicitation of an offer to buy or subscribe for Placing Shares in any jurisdiction including, without limitation, the United Kingdom, the United States, Australia, or Japan. This announcement and the information contained herein is not intended for publication or distribution, directly or indirectly, to persons in the United States, Australia, Japan or in any jurisdiction in which such publication or distribution is unlawful. Mirabaud Securities Limited and Renaissance Capital Limited are acting exclusively for the Company in connection with the Placing and no-one else and will not be responsible to anyone other than the Company for providing the protections afforded to their clients or for providing advice in relation to the Placing or any matter referred to in this announcement.
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