Last checked at 15 Apr 2010 07:00
AIM: EMED 15 April 2010
EMED Mining Raises £8.775 Million in Placing
EMED Mining Public Limited ("EMED Mining" or the "Company") has today conditionally placed 83,571,429 new ordinary shares of 0.25 pence each ("Placing Shares") at an issue price of 10.5pence each ("Placing Price") with a wide range of existing and new institutional investors principally in the UK and Canada (the "Placing"). Fox-Davies Capital Limited ("Fox-Davies") acted as broker to the Placing which raised net proceeds of £8.3 million (gross proceeds of £8.775 million less expenses). The issue price represents a discount of 3.6 per cent against the volume weighted average market price over the previous ten days.
The Placing Shares will be issued and admitted to trading on AIM ("Admission") subject to shareholders' approval at an Extraordinary General Meeting ("EGM") to be held at the Company's office at 3 Agios Demetrios Street, Acropolis, Strovolos, 2012 Nicosia, Cyprus at 10.00 a.m. on 3 May 2010.
The net proceeds from the Placing will be used by the Company to fund the maintenance, planning and permitting process in relation to the Proyecto de Rio Tinto project in Andalucía, Spain (the "Rio Tinto Mine") in accordance with the Spanish regulatory authorities. The funds raised will also go towards funding the mine-development feasibility, planning and permitting the Company is carrying out in Slovakia and for general working capital purposes.
Following the issue of the Placing Shares and exercise of options, the Company will have a total of 424,954,049ordinary shares in issue. A corporate slide show update is available on the Company's website.
The Company has today despatched a circular to shareholders which contains the notice of EGM and copies will be available free of charge at the Company's registered office at 1 Lambousa Street, 1095 Nicosia, Cyprus during normal business hours on any weekday until 3 May 2010 (Saturdays, Sundays and publicholidays excepted) and fromwww.emed--mining.com.
Mr Harry Anagnostaras-Adams, Managing Director of EMED Mining commented:
"We are delighted with the support for EMED Mining from existing and new international institutional investors. We welcome as shareholders from Canada a number of leading mining investment specialists. The Placing serves to prepare for the Company's dual-listing on a major international mining exchange later in the year. Many of EMED Mining's shareholders are the same companies that funded the start-up of Portugal's Neves Corvo and Andalucia's Aguablanca, Aguas Tenidas and Las Cruces, recently permitted base metal mine start-ups near the Rio Tinto Mine within the world class Iberian Pyrite Belt.
"This financing underpins the carefully planned process for restarting the Rio Tinto Mine in 2011 and transforming it into an efficient 21st century operation. It also allows the Company to trigger planning for the drilling and other initiatives to extend mine life and expand base case annual production."
Enquiries
| EMED Mining | Fox-Davies Capital | RFC Corporate Finance | Bishopsgate Communications |
| Harry Anagnostaras-Adams | Daniel Fox-Davies | Stuart Laing | Michael Kinirons |
| +357 9945 7843 | +44 (0)207 936 5200 | +618 9480 2500 | +44 (0)207 562 3350 |
Notes to Editors:
Notable Investor Relations Dates in the short term are as follows:
·; March 2010 Quarterly Report, 19 April 2010
·; Master Investor Conference, 24 April in London
·; Extraordinary Shareholder Meeting, to approve financing, 3 May in Nicosia
·; Distribution of Annual Report, 14 May
·; Annual General Meeting, 15 June at Rio Tinto in Spain
·; Spanish Investor Presentations, Madrid 18 June
·; London shareholder briefings 21 June
About EMED Mining Public Limited EMED Mining was admitted to trading on AIM in May 2005. The Company is committed to responsible development of metal production in Europe, with an initial focus on copper and gold.
The Group's region of interest are the tectonic belts spanning across Europe and over to the Middle East. The strategy is to evaluate exploration and development opportunities in several jurisdictions throughout this quality mineral belt and to promote sustainable development practices through the implementation of European Union and other international standards. The Company strictly implements its Environmental & Community Policies which includes:
·; Integrating environmental management into its business, planning and reporting processes;
·; Promoting a strong environmental ethic throughout the Company and the community;
·; Complying with, as a minimum, all applicable local and European Union laws and regulations; and
·; Communicating with community stakeholders in a responsible and transparent manner.
EMED Mining has now established a strong position in the following selected zones:
·; The copper-mining districts of Cyprus and Spain which are probably among the best known in the world for their base metal endowment. The Company's first priority is to start-up production in Spain and to commence generating profits as from 2011. Since entering Spain in mid-2007 the Company has progressed the Rio Tinto Mine project in the following manner:
o Completed geological investigations and verified Mineral Resources and Ore Reserves in compliance with the JORC Code;
o Completed base case plans for operating a 14-year mine plan to extract ore reserves and to invest in drilling and other activities with a view to expanding and improving the project;
o Acquired 100% of the project (the mine, its associated land and the associated mineral rights along with the plant and its associated land) from vendor company Mantesur Andavalor via (now) wholly-owned subsidiary EMED Tartessus SL;
o Settled with the vendor company's principal creditor MRI Group which is now a shareholder of EMED Mining and has been appointed sales and marketing agent for the project;
o Terminated all involvement in the project by previous controllers of the vendor company and commenced legal proceedings for their non-performance and is considering other actions;
o Established support for the Company's plans from the communities and the Government; and
o Determined approach with the various authorities to assimilate regulatory changes and keep to timetable. Received clearance from the regulatory authorities to submit the full set of detailed reports and applications for permission to start-up.
·; Exploration areas in Slovakia are centred on a cluster of volcanic centres. The Company has completed a positive scoping study on the potential development of its significant gold discovery at Biely Vrch. The current priority is to refine the scoping study, compete a preliminary environmental impact assessment and trigger development permitting, as a prelude to in-fill drilling and detailed engineering.
·; Exploration in Turkey and Saudi Arabia via 25%-owned KEFI Minerals Plc. KEFI Minerals owns carefully selected licence areas in Turkey, as well as an extensive proprietary database of regional and specific exploration data providing a pipeline of further projects to evaluate. It is the operator of joint ventures in Turkey with Centerra Gold Inc of Canada and in the Kingdom of Saudi Arabia with local construction and investment group ARTAR. See www.kefi-minerals.com
For further information on the Company's activities, visit www.emed-mining.com or www.emed.tv