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27 May 2008 07:00
27th May 2008
SHARE BUY BACK OF 79 MILLION SHARES FROM CITADEL
THE COMPANY BOOKS $42 MILLION GAIN FROM SALE
Griffin Mining Limited ("Griffin" or the "Company") is pleased to announce that it has agreed to buy back for cancellation from Citadel Equity Fund Ltd ("Citadel"), 79,851,818 shares at £0.765 per share (68,181,818 of which were issued to Citadel at £1.10 per share in July 2007) for a total sum payable of £61.1 million, realising a net gain to the Company of £18.7 million or $41.9 million. After the transaction has been consummated, the Company will have reduced the outstanding shares in the Company from 261,509,549 to 181,657,731 whilst retaining some $90 million in cash and no debt.
The directors of Griffin, having consulted with its nominated adviser, consider that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
Chairman Mladen Ninkov commented, "The Company is extremely pleased with this share buy-back. It enables Griffin to significantly reduce its outstanding share capital, increase per share earnings, maintain a large cash balance for future acquisitions and crystallises a $42 million gain for shareholders. The Company's operations continue unabated with the final stage of the mill expansion at Caijiaying due for completion by the end of this summer. I look forward to further good news as the year continues."
Further information
Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director
Griffin Mining Limited
Adrian Hadden Telephone: +44(0)20 7523 8350
Collins Stewart Europe Limited
Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM).
The Company's news releases are available on the Company's web site: www.griffinmining.com
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