HGM.L Regulatory News (HGM)

7 Apr 2005 07:00

Highland Gold Mining Limited07 April 2005 07 April 2005 HIGHLAND GOLD COMPLETES Rb 750M (US$26.8M) BOND ISSUE Highland Gold Mining Ltd. ("Highland Gold") and its wholly owned subsidiaryHighland Gold Finance Limited announce the completion of the sale of roubledenominated bonds in the amount of Rb750,000,000 (US$26.8m). The bonds werepriced at par (Rb1000) with a 12% annual coupon rate, payable quarterly, and a 3year maturity. The pricing was conducted in a tender process with an overalldemand of Rb1.1 billion. The bonds are issued by Highland Gold Finance Limitedand guaranteed by Highland Gold. The net proceeds from this offering will be used for general corporate purposes,including funding construction at Highland Gold's development projects. HighlandGold is a leading Russian gold mining company with two operating mines and threeprojects under development. Highland Gold's shares are traded in London on theAlternative Investment Market under the symbol HGM. International Moscow Bank and Promsvyazbank acted as Joint Lead Arrangers andUnderwriters for the issue. Vneshtorgbank acted as a Co-Manager. InternationalMoscow Bank is the Paying Agent. Commenting on today's announcement Denis Alexandrov, Finance Director, said: "We are pleased to have successfully accessed a new source of long-termfinancing from Russia's domestic debt market. We are also encouraged by thepositive perception of Highland Gold that was demonstrated by the level ofdemand for our first placement in the market. The proceeds received from thisplacement further strengthen our financial capabilities and secure capital tofinance our development program." Enquiries:Highland Gold Mining Denis Alexandrov, Finance Director+7 095 777 3155 Dmitry Yakushkin, Director of Communicationsenquiries@highlandgold.comBrunswick Mark Antelmewww.highlandgold.com This information is provided by RNS The company news service from the London Stock Exchange