Last checked at 25 Feb 2011 07:00
25th February 2011
Placing of new shares
·; 5.25 million in new shares placed at 20p, raising £1.05 million
·; A 12-month warrant attached to each share exercisable at 35p
·; The funds to be used on an expanded drilling programme in Ireland
The Board of Connemara (AIM: CON) is pleased to announce an institutional placing of 5,250,000 new shares at a price of 20p representing 20.42% of the enlarged share capital. The Placing was arranged by Optiva Securities and has been performed under existing share allotment authorities. Allocated to each new share is a 12 month warrant to buy one share exercisable at a price of 35p. Should the Connemara price stay at or above 35p for five consecutive trading days during the exercise period, the directors can call for early conversion. If the warrants are not then exercised, they will lapse after 21 days.
The funds will be used for an expanded exploration programme in Ireland. Currently five drill rigs are working on the Stonepark zinc discovery in Limerick where up to 65 holes will be drilled this year. Diamond drilling has also commenced in the Thurles area close to the Lisheen zinc mine. This is to follow up targets identified in earlier prospecting. Work is ongoing on our Mallow block of licences, adjacent to the old Silvermines lead mine, while options on the Lough Sheelin block are being examined.
Application will be made for the placing shares to be admitted for trading on AIM. Dealing is expected to commence on or about the 3rd of March 2011. Completion of the placing is conditional amongst other things on such admission becoming effective.
John Teeling, Chairman, commented:
"World demand for zinc continues to grow. Prices are rising. We have excellent ground in Ireland in Limerick, where our partner Teck has an expanded exploration programme as well as at locations near the Lisheen mine and the old Silvermines mine, both in Tipperary. These funds will expand our exciting 2011 drilling programme."
Enquiries:
Connemara Mining Company Plc
John Teeling, Chairman +353 (0)1 833 2833
Jim Finn, Financial Director
Smith & Williamson Corporate Finance
Nick Reeve +44 (0) 117 3762213
Barrie Newton +44 (0) 117 3762213
Optiva Securities Ltd
Jason Robertson +44 (0) 203 137 1906
Jeremy King +44 (0) 203 137 1904
College Hill
Nick Elwes +44 (0) 207 457 2020
www.connemaramining.com