4 Aug 2008 12:28
4th August 2008
Carnegie Minerals Plc ("Carnegie" or the "Company")
Trading Update
Carnegie Minerals Plc (AIM - CME), the mineral resource company with interests and advanced exploration in Senegal and a strategic cooperative agreement in the USA provide the following update:
Gambia (50/50 JV with Astron Ltd)
The Company has continued to work exhaustively on resolving the expropriation of the joint venture company's mining assets and wrongful cancellation of its mining licence by The Gambian Government. While this process is ongoing, the joint venture partners continue to take all necessary steps to vigorously defend the company's interests and personnel. The defence of the company's position, and that of the project manager, Charlie Northfield, who is still detained on bail in The Gambia, continue to represent a serious drain on our financial and manpower resources.
Senegal (50/50 JV with Astron Ltd)
Work on the environmental impact assessment on the Niafarang mineral sands deposit in southern Senegal is continuing well and according to plan.
USA
The Company's technical team has undertaken extensive preliminary field investigations under its Cooperative Research and Development Agreement with the US Geological Survey and several prospective opportunities have been identified to date. Taking these opportunities further, is now dependent on the establishment of appropriate additional financing arrangements.
Working Capital and Corporate Activity
As reported in the Company's annual accounts, the board has focused on forging new project opportunities in more stable areas with significant potential while following up results in Senegal. At the last EGM of the Company the board was also granted additional authorities to issue new shares in order to rapidly exploit investment and financing opportunities that present themselves to the Company, in a cost-effective manner.
The Company has continued to review possible potential transactions and fundraising opportunities and is still in a number of discussions. The Company's cash balance is currently £150,000 and the Company is actively engaged in seeking the necessary additional funding to support its ongoing efforts. The board anticipate that additional funding is required to be in place by October and hope to make a further announcement in this regard in due course.
Ends
For further information, call:
| Alan Hopkins, Managing Director, Carnegie Minerals Plc | 020 7831 3113 |
| Romil Patel / Olly Cairns, Blue Oar Securities Plc | 020 7448 4400 / + 61 8 6430 1631 |
| Billy Clegg /Edward Westropp, Financial Dynamics | 020 7831 3113 |