Last checked at 22 Nov 2016 13:16
FinnAust Mining plc / EPIC: FAM / Market: AIM / Sector: Mining
FinnAust Mining plc ('FinnAust' or the 'Company')
Comment re. Press Speculation
FinnAust Mining plc, the AIM and FSE listed company with projects in Greenland & Finland, notes speculation today regarding a potential equity fundraising by the Company.
The Company is in discussions with investors to potentially raise up to £5 million from a placing of new ordinary shares of the Company to fund feasibility studies, an environmental impact assessment, a social impact assessment, a resource assessment and detailed engineering studies at the Pituffik Titanium Project ('Pituffik') in Greenland, as well as for general working capital purposes. This will build of work to date which has indicated the potential for Pituffik to be in the top percentile of projects worldwide in terms of heavy mineral grade. A further announcement will be made by FinnAust once discussions with investors are concluded.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.
**ENDS**
For further information please visit www.finnaust.com or contact:
Roderick McIllree | FinnAust Mining plc | +44 (0) 20 7907 9326 |
Graham Marshall | FinnAust Mining plc | +44 (0) 20 7907 9326 |
Ewan Leggat | SP Angel Corporate Finance LLP | +44 (0) 20 3470 0470 |
Laura Harrison | SP Angel Corporate Finance LLP | +44 (0) 20 3470 0470 |
Elisabeth Cowell | St Brides Partners Ltd | +44 (0) 20 7236 1177 |
Charlotte Page | St Brides Partners Ltd | +44 (0) 20 7236 1177 |
Notes
FinnAust has a number of highly prospective licences at various stages of development in Greenland and Finland. The Company is dual listed on the London AIM market and Frankfurt Stock Exchange.
The Company is currently focussed on advancing the Pituffik Project in Greenland, an area that has only recently revealed its mineral potential following changes in the climate. Pituffik, which FinnAust conditionally acquired in December 2015, has demonstrated the potential to be in the top percentile of projects worldwide in terms of heavy mineral grade.
Pituffik comprises three main target areas along an >80km coastline historically proven to contain large and high-grade accumulations of primary ilmenite occurring as placer deposits in the following environments:
· Raised beaches; containing ilmenite accumulations over widths of more than 1km, of unknown depths, along more than 20km of coastline;
· Active beaches; which refer to the area seaward of the frontal dunes, including the beach, tidal zones and surf zone - historically samples from this area have achieved 70% ilmenite by weight; and
· Drowned beaches; refers to the areas seaward of active beaches.
The Company's strategy is focused on the production of a bulk sample "proof of concept" from the Pituffik Project in 2017 with the aim of ultimately generating cash flow to create a company capable of self-funding exploration on future acquisitions.
FinnAust has an interest in 60% of Bluejay Mining Limited the holder of the Pituffik exploration licence and has an option to acquire the remaining 40%.
FinnAust also holds a 100% interest in a portfolio of copper, zinc and nickel projects in Finland. This multi-commodity portfolio remains a strategic asset of importance and has been restructured to be cost-sustainable whilst determining the best plan for future development.