Asa Resources Regulatory News (ASA)

12 Dec 2005 07:01

Mwana Africa PLC12 December 2005 12th December 2005 Mwana Africa PLC £13.1m placing by Canaccord and Issue of 600,000 consideration shares to AngloGold Ashanti Mwana Africa plc (the "Company"), the African resources company, today announcesthat Canaccord Capital (Europe) Limited has placed 27,100,000 new ordinaryshares in the Company at 48.5p with institutional investors, raisingapproximately £13.1 million (before expenses). An application has been made toAIM for the new ordinary shares to be admitted and it is expected that tradingwill commence on 15 December 2005. The proceeds received by the Company will be used to: advance work on thecompletion of a joint venture agreement with Gecamines, the Democratic Republicof the Congo state copper mining company for a previously worked copper/cobaltmine in Katanga; to refurbish the Freda Rebecca Mine in Zimbabwe with a view toreturning it to production capacity of 100,000 ozs per year gold production inthe second half of 2006; ongoing exploration and for general working capitalpurposes. The Company also announces that it has agreed to issue 600,000 ordinary sharesat a deemed value of 48.5p per share to the AngloGold Ashanti Group, insatisfaction of the remaining vendor consideration owing in respect of theacquisition of the Freda Rebecca Mine, as disclosed in the Company's AIMre-admission document dated 30 September 2005. Commenting on the placing, Kalaa Mpinga, Chief Executive Officer of Mwana AfricaPLC said: "These new funds complement our positive cash flow from operations and enable usto accelerate development plans for our current assets and evaluate our strongpipeline of available new opportunities in Africa, which we believe will providehealthy returns and require only minimal start-up funding." Enquiries: Kalaa Mpinga/ Oliver Baring Mwana Africa plc + 44 (20) 7654 5588 Tom Randell/ David Simonson + 44 (20) 7653 6620Merlin + 44 (0) 777 587 5847 This information is provided by RNS The company news service from the London Stock Exchange