Last checked at 28 Jun 2012 10:52
Noricum Gold Limited / EPIC: NMG / Sector: Natural Resources
Noricum Gold Limited ('Noricum Gold' or 'the Company')
Issue of Equity & Directors' Shareholdings
Raises £2.2 million to Develop Highly Prospective Rotgulden Gold & Precious Metals Project, Austria
Noricum Gold Limited, the Austrian focussed gold exploration and development company, is pleased to announce that it has raised £2.2 million by way of a placing of 220,000,000 new ordinary shares of no par value in the capital of the Company ('the Placing Shares'), with new and existing shareholders in the Company at a price of 1 pence per Placing Share ('the Placing'). The funds will be used to implement the Company's 2012 exploration programme across its highly prospective Austrian gold and precious metal assets, with a particular focus on the Company's flagship 51 sq km Rotgülden gold and precious metal licence where bonanza results to date have demonstrated the project's exciting regional potential.
A summary of the intended use of the proceeds of the Placing is set out below. However, funds will be applied in the manner the Board believes is most appropriate based on the results of the electro-magnetic survey and planned work programmes.
Intended use of funds | Amount (approx.) | |
Exploration: | ||
Rotgulden underground mine | £0.65m | |
Altenberg target | £0.85m | |
Schonberg project | £0.25m | |
Other licence areas | £0.10m | |
General working capital and corporate overheads | £0.25m | |
Placing expenses | £0.10m | |
Total | £2.2m |
Noricum commenced its 2012 work programme at Rotgulden in May with an extensive airborne electro-magnetic ('EM') survey designed to identify prospective drill targets and open up new areas of mineralisation. The data from this campaign is currently being processed and interpreted, although early indications are very positive with several new anomalies having been identified for further exploration. With this in mind, the Company looks forward to updating shareholders in the coming weeks.
EM is proven to locate massive sulphide ore bodies including gold, silver and copper mineralisation and iron formations down to a depth of over 200 metres. As such, results from the geophysics programme will form the basis of the Company's 2012 resource drilling campaign. At present, the Company plans to drill predominantly at the previously producing Rotgulden mine target and the Altenberg and Schurfspitze targets, located to the south along 8km of prospective strike running through the tenure. Results from sampling at Altenberg during 2011 returned bonanza gold grades of up to 86.4 g/t and 1,011 g/t silver. The Company also plans to conduct further exploration at its Schonberg Precious Metals Project to advance attractive exploration targets identified to date.
Noricum Gold Managing Director Greg Kuenzel said, "We believe that the bonanza gold and silver results received from multiple targets at Rotgulden to date demonstrate the fantastic potential and regional scale of this project. With this in mind, we are delighted to have raised these funds during this active and progressive time for Noricum.
"Outside of the historic mine centre, where we successfully drilled during the last field season, modern exploration techniques have not been used throughout the Rotgulden licence. Initial findings from our recent geophysics programme are very encouraging and complement the excellent results received from reconnaissance work along the 8km strike running through the licence. We look forward to receiving the geophysics results so that we can utilise the funds raised to rapidly implement a drill programme at Altenberg and Schurfspitze and test these exciting areas at depth."
"Alongside this programme, we will remain focussed on achieving our maiden resource by undertaking underground drilling at the Rotgulden underground mine later this year."
Certain Directors of the Company have participated in the Placing as follows:
Name | Shareholding prior to the acquisition of Placing Shares | No. of Placing Shares acquired at 1p per share | Total beneficial shareholding following the issue of the placing shares | % shareholding in the issued share capital of the Company as enlarged by the Placing Shares and the Consultants' Shares (as described below) |
Marcus Edwards-Jones | 1,777,222 | 2,500,000 | 4,277,222 | 0.57 |
Gregory Kuenzel | 1,222,222 | 600,000 | 1,822,222 | 0.24 |
Jeremy Whybrow | 1,444,444 | 2,100,000* | 3,544,444 | 0.47 |
* Please note that these Placing Shares have been subscribed for by Mr Whybrow's spouse.
In addition to the Placing Shares, a further 5,492,487 ordinary shares of no par value have today been issued to various consultants to the Company, in lieu of fees, at a price of 1 pence per share ('the Consultants' Shares').
The Placing Shares and Consultants' Shares will rank pari passu in all respects with the existing ordinary shares of no par value in the capital of the Company. Application will be made to the London Stock Exchange for the Placing Shares and the Consultants' Shares to be admitted to trading on AIM ('Admission'). It is expected that Admission will become effective on or around 4 July 2012.
As a result of the issue of the Placing Shares and Consultants' Shares as described above, the issued share capital of the Company now consists of 754,226,643 ordinary shares of no par value.
The Company also announces that it has today granted a total of 13,255,000 warrants (the "Warrants") to subscribe for new ordinary shares of no par value in the capital of the Company. The Warrants have been granted to certain advisers to the Company, have an exercise price of 1p and will expire on the second anniversary of Admission.
For further information please visit www.noricumgold.com or contact:
Greg Kuenzel | Noricum Gold Limited | Company | Tel: 020 3326 1726 |
Ewan Leggat | Fairfax I.S. PLC | Nomad & Broker | Tel: 020 7598 5368 |
Laura Littley | Fairfax I.S. PLC | Nomad & Broker | Tel: 020 7598 5368 |
Elisabeth Cowell | St Brides Media & Finance Ltd | PR | Tel: 020 7236 1177 |
Hugo de Salis | St Brides Media & Finance Ltd | PR | Tel: 020 7236 1177 |
Notes to Editors
Noricum Gold Limited is an AIM listed gold and precious metal exploration and development company focussed on south-central Austria, an historic gold producing region. Its portfolio spans five areas across 178 sq km* of highly prospective land with work currently focussed on the 51 sq km Rotgülden gold and precious metals project, which consists of 15 underground mines including the previously operating gold/copper/silver Rotgülden mine. The Company is actively conducting exploration programmes to advance these licences through the resource development cycle. Bonanza high grade gold, silver and copper results to date underpin the expanding and exciting potential of the projects and regional continuations.
* Clarification of size of licence area - please note that due to an arithmetic error the total size of the Company's licence area was previously incorrectly stated in the Chairman's Report of the 2011 annual report and accounts. The Chairman's Report dated 27 March 2011 should have stated that the Company's land position covered 165 square kilometres. Further to a subsequent survey of the Schonberg licence area and the additional licence acquisitions by the Company, as announced on 19 April 2012, the total area covered by the licences currently held by the Company is 178 square kilometres.