FML.L Regulatory News (FML)

14 Dec 2005 11:12

Frontier Mining Ltd14 December 2005 14 December 2005 AIM: FML Frontier Mining Ltd ("Frontier" or the "Company") Placing to raise up to £10 million The Company announces that it has today completed a placing, arranged byEvolution Securities Limited ("Evolution"), to raise up to £10 million beforeexpenses (of which £8 million has been underwritten by Evolution) (the"Placing") by the issue of up to 50,000,000 shares of common stock of $0.01 each("New Shares") with institutional and other investors at a price of 20p. The net proceeds of the Placing will be used to fund equipment purchases,reserve development at Naimanjal and Kotansor, pre-feasibility studies atBaitimir, Beschoku, Koskuduk and Yubileiny, further exploration work at Baltemirand to provide general working capital for the group. Brian Savage, CEO of Frontier, comments, "This Placing marks an important stagein Frontier's development and we are very pleased with the support that we havereceived from investors. We have made significant progress on a number of ourprojects this year and commenced production at Naimanjal. We look forward toapplying these funds to further prove up our assets so that we can fully realisetheir value." The Placing is conditional on admission of the New Shares to trading on the AIMmarket of the London Stock Exchange ("Admission"). These applications have beenmade and it is expected that Admission will occur on 28 December 2005. Enquiries: Frontier Mining Ltd Brian Savage 020 7849 6530 Parkgreen Communications Cathy Mallins / Annabel Leather 020 7493 3713 About Frontier Frontier Mining Ltd. is a mineral exploration and development company that wasincorporated in the state of Delaware, USA, on August 5, 1998 for the purpose ofexploring and developing gold and copper deposits in the Republic of Kazakhstan.Through its subsidiaries and affiliates, Frontier locates, evaluates, acquires,explores and develops mineral properties. Frontier has two licenses owned by its wholly owned subsidiaries in Kazakhstan.They are the Naimanjal exploration and mining licence, held by FML Kazakhstan,and the Baltemir exploration licence, held by Baltemir LLP. Frontier has oneproducing gold mine, Naimanjal; one pre-feasibility stage gold project,Koskuduk; and one exploration stage gold prospect, Baltemir. Naimanjal isforecast by management to produce 25,000 ounces of gold in 2006 at a cash costof $250 per ounce. Frontier currently intends to double its gold production to50,000 ounces in 2007 and double it again to 100,000 ounces in 2008. Managementbelieves its gold projects contain more than two million ounces of oxide goldresource. Frontier also has one pre-feasibility stage copper porphyry deposit withassociated gold and molybdenum, Baitimir; and several copper/gold prospectsalong a 25-km trend including both VMS and porphyry types. Metallurgical testson its Beschoku and Yubileiny copper projects confirm the oxide copper ore isamenable to extraction using low cost SX-EW technology. Management believes thecopper projects contain more than 1,000,000 tonnes (2.2 billion pounds) ofcopper (P1) resource with significant potential for increase. Frontier iscurrently evaluating acquisition opportunities in uranium, gold, and copper inKazakhstan and the CIS countries. Frontier shares are traded on the AIM market of the London Stock Exchange.Following the Placing, Frontier will have up to 139,209,931 ordinary sharesissued and 10,723,747 outstanding options and warrants, giving 149,933,678 fullydiluted ordinary shares. Further company information may be accessed at the Frontier Mining Ltd. websiteat: www.frontiermining.com This information is provided by RNS The company news service from the London Stock Exchange