Arkle Res Regulatory News (ARK)

31 Jul 2007 07:00

Connemara Mining Company plc 31 July 2007 Connemara Mining Company Plc ('Connemara' or 'The Company') Fundraising and AIM Listing Connemara Mining Company Plc, a zinc mining and exploration company which has acquired blocks of assets in three specific regions of Ireland, is very pleased to announce its admission to the AIM Market this morning, raising £1m. Placing Price per Ordinary Share 35 pence Number of Ordinary Shares in issue on Admission 15,176,710 Gross proceeds of the Placing £1,000,000 Market capitalisation at the Placing Price £5,311,849 LSE stock ticker CON INVESTMENT CASE Zinc: a high value commodity • Primary industrial applications include galvanising, brass production and die casting • Demand has outstripped supply and is expected to increase due to projected Chinese and Indian industrial growth over the next decade • Supply / demand imbalance has caused prices to soar - rise of $1200 per tonne to $3400 since 2003 - and still rising Ireland is a proven zinc producing region: • Historically world class zinc province • Currently producing 40% of Europe's zinc • Substantial mines are already in place: - Boliden/Tara mine 5th largest zinc mine in the world Anglo American produce at 2.7m tonnes of ore grading 12.3% zinc at one mine - Lundin/Lisheen mine is 5th largest in Europe, producing 620 000 tonnes at 11.8% • 26 companies currently prospecting in Ireland - underlining regional potential 23 highly prospective licences and JV with major international miner • 22 zinc exploration licences and 1 gold exploration licence • 16 licences are adjacent to Xstrata / Minco high grade discovery at Pallas Green - Counties Limerick / Cork 'Rathdowney Trend' • Joint venture with Teck Cominco (TCM) (C$12bn market cap Canadian listed miner) to explore 15 of these zinc licences • 6 further licences have also been applied for CONNEMARA OPERATIONS Joint venture operations • Hugely successful JV partner. TCM is a C$12bn Canadian international mining company. TCM is a fully integrated mining and metals company, involved in exploration, production, refining, smelting and sales. Operating internationally, zinc is a particular corporate focus. • Connemara is free carried on first $3m expenditure on JV blocks • Agreement commits TCM to spend C$3m by December 2010 • Drilling targets identified • Initial 5 scouting hold programme to be completed end 2007 Further Operations • 5 additional licences in Counties Cavan / Meath region of Lough Sheelin - 20k west of Tara Mine - Initial work suggests considerable similarity to the Tara Mine geology - The Company is to defines drilling targets • 1 zinc licence in Kerry - Western extension of the Rathdowney Trend - Anomalies pre identified - drilling targets to be selected Management Experienced management team with strong industry and regional expertise: • Proven success in natural resources • Proven AIM / PLC experience • Management Team are involved in, or have been involved with African Diamonds, West African Diamonds, Persian Gold, Minco, Kenmare Resources • Long involvement in Irish zinc: John Teeling involved in original Irish zinc boom of 1970's John Teeling, Chairman of Connemara Mining Company commented: Ireland is a recognized zinc province and one of the global centres of zinc production. As zinc is a commodity with strong fundamentals any commercial finds could prove particularly lucrative. We are in the very early stages, but working together with Teck Cominco, we should have first drilling results by the end of this year. We feel that our licences adjacent to recent discoveries can produce positive results and look forward to the future with confidence' Enquiries: Connemara Mining Company Plc + 353 1 8332833 John Teeling, Chairman Jim Finn, Financial Director Blue Oar Securities Plc +44 (0) 117 933 0020 John Wakefield Simon Moynagh College Hill +44 (0) 207 457 2020 Paddy Blewer Nick Elwes Management team: John Teeling (aged 61) Executive Chairman John Teeling has been involved in resource projects for over 30 years. John is the founder and chairman of Pan Andean Resources Plc, Petrel Resources Plc, African Diamonds Plc, West African Diamonds Plc and Persian Gold Plc. He is also a former director of Kenmare Resources Limited, Minco plc and Arcon Limited. John Teeling holds degrees in Economics and Business from University College Dublin, an MBA from Wharton and a Doctorate in Business Administration from Harvard. He holds interests in a number of industrial ventures. James Finn (aged 48) Executive Director James Finn has been the senior financial executive of a group of resource companies since 1988. He holds a management degree and accounting qualifications. He is also a director of Cooley Distillery Plc, Pan Andean Resources Plc, Persian Gold Plc, African Diamonds Plc and West African Diamonds Plc. James is a former director of Minco plc. Edward Byrne (aged 65) Non-Executive Director Edward Byrne is managing director of CSA Group Limited, a worldwide consultancy and geoservice provider for the minerals and energy sectors. He has over 40 years' experience in the international minerals industry. Previously he was a senior executive with RTZ's European exploration division before joining CSA Group Limited in 1991. He has served as a member of the Geological Survey of Ireland's Consultative Committee for over ten years. In the past 15 years he has also contributed to European and World Bank programmes supporting investment in the mining sector across developing countries in Africa, the Caribbean and the Pacific Region.