Atalaya Mining Regulatory News (ATYM)

11 May 2007 07:01

EMED Mining Public Limited11 May 2007 AIM: EMED 11 May 2007 EMED MINING PUBLIC LIMITED ("EMED Mining" or "the Company") PLACING OF £4 MILLION INCREASING GOLD EXPLORATION IN SLOVAKIA OPPORTUNITY TO ACQUIRE COPPER MINE IN SPAIN •Placing of 33.3 million new ordinary shares at 12.0p each to raise new funds of £4.0 million (net proceeds £3.8 million) to be applied to EMED Mining group working capital requirements. The lead broker for the Placing was Fox-Davies Capital with Lewis Charles as the joint broker; •Placees including Oxiana Europe Limited ("Oxiana"), Gold Fields Netherland Services NL, a wholly owned subsidiary of Gold Fields Limited ("Gold Fields"), selected financial institutions and Directors; •Oxiana maintaining its 12% shareholding in the Company via today's Placing and Gold Fields becoming a 10% shareholder; •Expanding exploration of the recent gold discovery at Biely Vrch in Slovakia; •Opportunity to acquire RTZ-built copper mine and processing plant, Proyecto de Rio Tinto ("PRT") in Spain. Option exercise subject to accomplishment of various milestones including EMED Mining being satisfied that its stipulated conditions precedent have been met, due diligence being completed with satisfactory results and adequate financing being secured in due course; and •Progressing projects in Cyprus and Georgia. Harry Anagnostaras-Adams, Managing Director of EMED Mining said: "We aredelighted to have closed this fundraising of £4.0 million which demonstrates thestrong support of industry players, financial institutions and Directors for theCompany's exploration and development strategy. We are particularly pleased withprogress at our recent gold discovery at Biely Vrch in Slovakia. We are alsopleased to have the opportunity to further examine and potentially acquire thePRT copper project in Andalucia, Spain via an option. Along with our continuedprogress in our other countries, we look forward to a long and successful timeahead for the Company. We would like to thank our stakeholders for their ongoingsupport as we continue to build the Company in our mission to become acontributor to European metal production". -Ends- Enquiries EMED Mining Nabarro Wells Fox-Davies Parkgreen Capital CommunicationsHarry Richard Daniel Fox-Davies Clare IrvineAnagnostaras-Adams Swindells+357 9945 7843 +44 20 7710 7400 +44 207 936 5220 +44 20 7851 7480www.emed-mining.comwww.emed.tv Placing The Directors are pleased to announce that the Company has placed 33.3 millionnew ordinary shares ("New Ordinary Shares") at an issue price of 12.0p to raisenew funds of £4.0 million (net proceeds £3.8 million). The new funds raised willbe applied to the following areas: • EMED Mining's on-going exploration activities in Cyprus, Slovakia and Georgia; • due diligence and care and maintenance payments relating to the PRT option described in this announcement; and • other EMED Mining group expenditure. The lead broker for the Placing was Fox-Davies Capital with Lewis Charles as thejoint broker. Application is being made for the New Ordinary Shares to be admitted to tradingon AIM and it is expected that admission to trading on AIM will become effectiveon or around 16 May 2007. EMED Mining's Shareholder Base EMED Mining is building its shareholder base and balance sheet in line with thegrowth of its businesses. The shareholder base has today been expanded and thePlacing includes participation by the following: •Oxiana maintaining its current 12% shareholding; •Gold Fields today becoming a 10% shareholder; •Directors Ronnie Beevor and Gordon Toll (4% each), and •Financial institutions. Pursuant to the Placing, the following Directors of the Company have subscribedfor the following numbers of new ordinary shares in the Company and will havethe following interests in the enlarged share capital of the Company: Shareholder New Ordinary Shares Total Percentage interest in being issued pursuant Shareholding the enlarged issued share to the Placing following the capital of the Company PlacingGordon Toll 2,166,667(1) 4,666,667(1) 3.70%Ronnie Beevor 1,000,000(2) 5,450,000(2) 4.32% Pursuant to the Placing, the following other parties have subscribed for thefollowing numbers of new ordinary shares in the Company and will have thefollowing interests in the enlarged share capital of the Company: Shareholder New Ordinary Shares Total Percentage interest in being issued pursuant Shareholding the enlarged issued share to the Placing following the capital of the Company PlacingOxiana 3,500,000 14,948,000 11.86%Gold Fields 12,737,042 12,737,042 10.10%RAB SpecialSituations(Master)Fund Ltd 2,500,000 9,500,000 7.54%Paul Curtis 1,000,000 5,850,000 4.64% The enlarged issued share capital of the Company following the Placing willcomprise 126,060,432 ordinary shares. (1) Held through Coffee House Group Limited, a company wholly and beneficiallyowned by Gordon Toll(2) Held by Ronnie Beevor and his wife as trustees of the Digger Superannuation Fund EMED Mining, Slovakia Already reported exploration results led the Company to take a number of stepsto expand the programs in Slovakia, including: •Drilling to over 500 metres at Biely Vrch discovery area. Assays are pending for drill-holes DVE5, 6, 7 and 8. DVE 9 and 10 are in progress. •Applications for new exploration licences covering a combined area of 490 km2 compared with current licence area of 1,312 km2 . •Alliance in respect of EMED Mining's Slovakian interests with Gold Fields, which has become a 10% shareholder in the Company. Gold Fields has made available technical support should it be required and has the right of first refusal over the Company's Slovakian interests, should EMED Mining decide to joint venture the project within the next two years. This is not the current intention of the Company. Opportunity to acquire Proyecto de Rio Tinto Project ("PRT") The Directors of EMED Mining are also pleased to announce that the Company hasbeen granted an option to acquire PRT. PRT is an RTZ-built copper mine andprocessing plant in Spain. As described in more detail below, the exercise ofthe option to acquire PRT is by no means certain, is subject to the satisfactoryachievement of various conditions and to financing. The main assets of PRT are at the mine and plant site adjacent to the town ofRio Tinto 65 kilometres northwest of Seville in Andalucia, Spain, and they wereplaced on care and maintenance in 2000 due to then-prevailing low copper-metalprices below $US1.00/lb. Assets include mineral rights within the main tenementswhich has an area of 20 square kilometres and also some exploration licences inthe district aggregating to 36 square kilometres. JORC-Compliant MineralResources and Ore Reserves (independently verified by AMC Consultants) containin-situ copper exceeding 1 million tonnes and 300,000 tonnes respectively. The exercise by EMED Mining of its option over the first 51% of PRT (withfurther options up to 100%) and the subsequent restart of mining operations atPRT can only proceed upon the Directors being satisfied that certain specifiedconditions precedent have been met, due diligence being completed withsatisfactory results and the Company raising the necessary funds. At this pointin time, the Directors can not be certain that these requirements to allowexercise will be achieved. If the option over the first 51% of PRT is notexercised, EMED Mining will withdraw from the project and is likely to haveincurred costs in the order of £2.5 million should that occur. Subject to the above, the exercise of the option over the first 51% of PRT wouldbe at a cost estimated to be in the order of £18 million, which would includethe extinguishment by EMED Mining of the specific debts and other obligations ofthe vendor as well as the costs of operational restart of PRT and workingcapital. The exercise of further options over the remaining 49% of PRT intranches of no less than 10% per annum during the following four years would beat a total cost in the order of £37 million, subject to aggregated payments forPRT not exceeding the overall capped exercise price of approximately £50 millionplus working capital. Should the Directors decide to exercise the options to acquire PRT, the futurefunding of the acquisition, restart and expansion of PRT would be expected toinvolve raising a mixture of financing from the following sources: customers,project financiers, PRT operating cash flow surpluses and shareholders. In consideration for the grant of the options over PRT, EMED Mining hasundertaken to assume the responsibility for delivering the various solutionsrequired for the restart of mining operations at PRT including social,environmental, technical and financial solutions. These matters have beendiscussed with the Government (Junta de Andalucia) and detailed proposals arebeing prepared for proper consideration in due course. EMED Mining's Spanishsubsidiary has assumed responsibility for funding care and maintenance of thesite and for planning the restart. The aggregate cost of all EMED Miningexpenditure to date, together future care and maintenance, due diligence andother costs prior to a commitment to restart is estimated to be in the order of£2.5 million. Provided that the exercise of the first 51% of the PRT option isachieved in Q4 2007 (as described above), restart of PRT's mining operations canbe planned for Q2 2008. Further information on PRT is set out in the Notes to Editors to thisannouncement. EMED Mining, Cyprus and Georgia In Cyprus the Feasibility Study continues for potential development of theKlirou Copper and Zinc Project. The Study is expected to be completed in Q3 2007with a view to development commencing in 2008, subject to receiving requisitesupport from regulatory authorities, the community and landholders. In Georgia, the exploration teams have mobilised into the field following theSpring thaw. The focus is on first-pass testing of prioritised targets and abetter understanding of the Zopkhito Prospect which has Russian Resources of 1million ounces. EMED Mining Strategy Today's initiatives reflect the Company's focused and determined pursuit of thefollowing key goals: 1. establishing substantial metal production as rapidly as reasonably possible; 2. focusing only on projects with world-class potential; 3. maintaining a balanced portfolio ranging from exploration projects to production; and 4. establishing substantial assets in a range of carefully selected jurisdictions in the targeted region. It is now two years since the Company was admitted to AIM and it has now takenfurther steps forward in its mission of establishing a metal production leaderin a particularly well-endowed minerals region. The measures taken todaystrengthen EMED Mining in several very important ways. At Biely Vrch, Slovakia it has now improved its chances of discovering alarge-scale gold deposit in the Carpathian Belt, one of the world's best-endowedprecious metal producing districts historically. Whilst there can be no guarantee that EMED Mining will be able to achieveexercise of the option over Proyectos de Rio Tinto in Andalucia Spain, theDirectors believe that exercise of this option would give the Company animportant opportunity to establish large-scale copper production in the IberianPeninsula, one the world's prolific base-metal producing districts. The Company has implemented appropriate funding arrangements by having securedthe support of leading international mining companies, Oxiana and Gold Fields,along with support of specialist project financiers, Resource Capital Funds ofAustralia and RMB Australia Holdings Limited, in addition to existinginstitutional shareholders such as RAB Capital. However, it is too early tocomment on the likely structure or terms of future financings. In the meantime EMED Mining's other projects in Georgia, Cyprus and Turkey, thelatter via associated company KEFI Minerals Plc, continue to move forward. EMED Mining Management Team The Group has expanded its senior team in line with today's initiatives. MrPatrick Gorman, an engineer with 35 years international experience, will beresponsible for the Company's feasibility studies. Mr Guillermo Gutierrez,former Minister of the Junta de Andalucia, is now Chairman of EMED Tartessus,the Company's newly formed Spanish subsidiary. The group's Management team is based in the appropriate locations in Europe,includes a leadership team drawn largely from the Australian mining industry andis supported by in-country experts in Cyprus, Slovakia, Georgia, Turkey and nowin Spain. The Board and Management includes the founders of the EMED Mining andown an aggregate 26.72% of EMED Mining's shares and options on issue on afully-diluted basis. The Board of Directors of EMED Mining today also approvedthe issue to Mr Anagnostaras-Adams, the Managing Director, of 2.5 millionoptions over unissued ordinary shares exercisable at 15p per share over the next6 years. The options do not vest unless the Company exercises an option over thefirst 51% of PRT. Competent persons for reporting of resources and reserves References in this announcement to exploration results and potential have beenapproved for release by Mr Ron Cunneen, B.Sc. (Honours). Mr Cunneen is Head ofExploration for EMED Mining and has more than 20 years' relevant experience inthe field of activity concerned. He is a member of The Australian Institute ofGeoscientists ("AIG"). The specific information in this announcement that relates to JORC-Compliantmineral resource and ore reserves is based on information compiled by Ms SoniaKonopa (Senior Geologist), MSc (Economic & Mining Geology), BAppSc (HonoursGeology)with 20 years relevant experience in the mining industry, and Mr PeterReynolds (Principal Mining Consultant), MEP, BAppSc (Mining Engineering), BBuswith 35 years relevant experience in the mining industry, who are both employeesof AMC Consultants (UK) Limited. Ms Konopa is a Member of the Australasian Institute of Mining and Metallurgy andhas sufficient experience relevant to the style of mineralisation and type ofdeposit under consideration to qualify as Competent Person as defined in the2004 Edition of the JORC Code. Ms Konopa is responsible for the reporting of themineral resource estimate. Mr Reynolds is a Member of the Australasian Institute of Mining and Metallurgyand has sufficient experience relevant to the style of mineralisation and typeof deposit under consideration to qualify as Competent Person as defined in the2004 Edition of the JORC Code. Mr Reynolds is responsible for the reporting ofthe ore reserve estimate. Ms Konopa and Messrs Cunneen and Reynolds consent to the inclusion in theannouncement of the material in the form and context in which it appears in thisannouncement. Notes to Editors: About EMED Mining Public Limited EMED Mining was admitted to trading on AIM in May 2005 following a placing ofits shares. The company is based in Cyprus and has a strong commitment toresponsible development of metal production operations in Europe, with aninitial focus on copper and gold. The Company has moved rapidly reflecting the experience of its specialist teamand the clarity of its strategy. The Group's region of interest are the tectonic belts spanning across Europe andover to Iran. The strategy is to evaluate exploration and developmentopportunities in several jurisdictions throughout this quality mineral belt andto promote sustainable development practices through implementation of EuropeanUnion and other leading-edge international standards. EMED Mining recentlyco-hosted with the Green Party of Cyprus an international conference onResponsible Mining and Environmental Management. The Company has, from theoutset, strictly implemented its Environmental & Community Policy whichincludes: • Integrating environmental management into our 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. • Communicating with community stakeholders in a responsible and transparent manner. EMED Mining has now established a strong position in the following selectedzones: • Spain/Cyprus The mines at Rio Tinto are probably amongst the best known in the world. They are, with the possible exception of those in Cyprus, the oldest capable of still being worked. It is now EMED Mining's goal to restart production in both of these well-endowed mining districts. Both Spain and Cyprus are progressive members of the European Union and EMED Mining has been made to feel welcome in both host countries. The styles of mineral deposits and of production techniques are similar. • Slovakia/Romania exploration areas are centred on a cluster of volcanic centres in Slovakia and Romania. Low-detection geochemical methods are being applied to these areas for the first time together with open pit bulk mining concepts. The targeted mineralisation styles are high-grade epithermal gold, or bulk-mineable epithermal gold and porphyry copper-gold. The company has announced a gold discovery at Biely Vrch in Slovakia which is a major priority for 2007. • Georgia/Central Asia exploration areas form a cluster of gold prospects centred in Georgia. EMED Mining's main prospects are within the Upper Racha Licence, the country's largest minerals licence with many untested prospects. The Company has confirmed Russian Resources of 1.0 million ounces gold at the Zopkhito Prospect and discovered high grade mineralisation at surface at other prospects. (please see full details in Annual Report 2006 announcement from 19 February 2007). • Turkey/Bulgaria exploration areas were vended into 34%-owned KEFI Minerals Plc which was admitted to AIM in December 2006. 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. The KEFI Minerals team has mobilized into the field to explore the company's tenements and to expand the portfolio of licenses as opportunities warrant. See www.kefi-minerals.com. For further information on the Company's activities, visit www.emed-mining.comor www.emed.tv. Further information on PRT Mineral Resource and Ore Reserve Statement The PRT Mineral Resource and Ore Reserve is reported below in tables 1 and 2 inaccordance with the Australasian Code for Reporting of Exploration Results,Mineral Resources and Ore Reserves, Prepared by the Joint Ore Reserves Committeeof the Australasian Institute of Mining and Metallurgy, Australian Institute ofGeoscientists and Minerals Council of Australia December 2004 (The JORC Code). The Mineral Resource is based on data and information supplied by the currentowner of PRT, and is reported at a 0.25% cut-off grade ("COG") for the "CerroColorado" zone, and 0.35% COG for the "Salomon" zone. The PRT Ore Reserve estimate is based on the 'Measured' and 'Indicated' portionsof the Mineral Resource, constrained within a proposed ten year mining zone asdefined by the current owner of PRT. A 20% tonnage reduction has been applied tothe contained reserves. All Proved Ore Reserve has been derived from theMeasured Mineral Resource and all Probable Ore Reserve has been derived from theIndicated Mineral Resource. The Ore Reserve is reported at a 0.25% COG for CerroColorado, and 0.35% COG for Salomon. Mineral Resource Statement for PRT-------------------------- --------- ------ --------Cerro Colorado @ 0.25% Cu COG Tonnes Cu % Cu Tonnes-------------------------- --------- ------ --------Measured 44,507,395 0.54 238,914-------------------------- --------- ------ --------Indicated 70,823,198 0.47 330,273-------------------------- --------- ------ --------Inferred 44,143,776 0.60 263,296-------------------------- --------- ------ --------Total (Cerro Colorado) 159,474,369 0.52 832,482-------------------------- --------- ------ -------- Salomon @ 0.35% Cu COG Tonnes Cu % Cu Tonnes-------------------------- --------- ------ --------Measured 30,146,257 0.75 226,205-------------------------- --------- ------ --------Indicated 8,114,724 0.63 51,140-------------------------- --------- ------ --------Inferred 11,354,562 0.73 83,121-------------------------- --------- ------ --------Total (Salomon) 49,615,542 0.73 360,466-------------------------- --------- ------ -------- Total Mineral Resource @ 0.25% & 0.35% Cu COG respectively 209,089,911 0.57 1,192,948-------------------------- --------- ------ -------- Table 1. PRT Mineral Resource Statement Ore Reserve Statement for PRT-------------------------- --------- ------ --------Cerro Colorado @ 0.25% Cu COG Tonnes Cu % Cu Tonnes-------------------------- --------- ------ --------Proven 17,501,600 0.56 98,332-------------------------- --------- ------ --------Probable 14,647,033 0.54 78,949-------------------------- --------- ------ --------Total (Cerro Colorado) 32,148,633 0.55 177,281-------------------------- --------- ------ -------- Salomon @ 0.35% Cu COG Tonnes Cu % Cu Tonnes-------------------------- --------- ------ --------Proven 18,315,200 0.81 148,432-------------------------- --------- ------ --------Probable 2,369,038 0.67 15,929-------------------------- --------- ------ --------Total (Salomon) 20,684,238 0.79 164,361-------------------------- --------- ------ -------- Total Ore Reserve @ 0.25% & 0.35% Cu COG respectively 52,832,871 0.65 341,642-------------------------- --------- ------ -------- Table 2. PRT Ore Reserve Statement Conditions precedent required for the exercise of the option over the first 51%of PRT include: •Regulatory approvals by the Government (Junta de Andalucia), support of the local community and approvals by the relevant statutory authorities in respect of performance bonds; •Settlement satisfactory to EMED Mining of the PRT-vendor's liabilities, liens and contractual arrangements with a number of third parties including landholders. These various obligations arose over the past decade as a result of the ongoing care and maintenance funding and from bankruptcy of various entities and litigation amongst some parties; •Completion of technical due diligence for planning the restart of the mine, processing plant and product marketing operations as well as planning for a fast-track approach to site rehabilitation where possible and reasonable, and concurrent with ongoing long-term production; and •Complete all due diligence to EMED Mining's satisfaction including environmental considerations and infrastructure needs. In addition, the option exercise is subject to the Company securing adequatefinancing to exercise the option and fund the working capital requirements ofthe re-start of PRT's mining operations. At this point in time, the Directorscan not be certain that these requirements to allow exercise will be achieved. The results to date of the Company's independently reviewed preliminary duediligence indicates that the potential restart of operations would achieve thefollowing: •copper production of circa 27,000 tonnes copper-in-concentrate for 10 years commencing in 2008; •annual revenues of £51 million at copper prices of $US1.80/lb or £71 million at $US2.50/lb (current spot price of $US3.70lb); •operating costs in the order of $US1.32/lb, or approximately £39 million per annum at the initial production rate of 27,000 tonnes copper per annum. •employment for approximately 300 employees and contractors along with total operating expenditure, mostly in the local region, in the order of £39 million annually; •expansion to production of circa 40,000 tonnes copper-in-concentrate (83% of the historical site maximum) by increasing throughput over time, expected within two years; and •improvement of the existing environmental condition of the site during operations and leading to eventual implementation of a full closure at the end of the life of mine in accordance with relevant industry standards. -Ends- This information is provided by RNS The company news service from the London Stock Exchange