Minco PLC Regulatory News (MIO)

1 Apr 2008 11:48

Minco PLC01 April 2008 Press Release Orca Minerals Closes C$3.05 million Financing Additional C$3.5 million Financing to follow for Mexican Projects London, 1 April, 2008 - Minco plc (MIO), the London AIM quoted precious and basemetals exploration and development company is pleased to report that OrcaMinerals Limited ("Orca"), its Canadian subsidiary, has completed a previouslyannounced financing for the private placement of 6,108,000 Special Warrants at aprice of $0.50 (Canadian) per Unit for proceeds of $3,054,000 (Canadian). The net proceeds of the Offering are to be used primarily to further theexploration and development of Orca's Mexican mineral projects. Union Securities Ltd. acted as Agent with participation by Canaccord CapitalCorp. Each Special Warrant entitles the holder to receive, upon the exercise or deemedexercise thereof without payment of any further consideration, one unit ofsecurities of Orca (a "Unit"). Each Unit is comprised of one common share ofOrca (a "Common Share") and one-half of one common share purchase warrant (a "Warrant") exercisable as follows: (i) to the extent such whole Warrant isexercised during the first 12 month period from the Liquidity Event, it willentitle the holder to acquire one common share in the capital of the Company at$0.75 (Canadian) per Common Share, and (ii) to the extent such full Warrant isexercised after the end of the first 12 month period from the Liquidity Eventand on or before the end of the second 12 month period from the Liquidity Event,one Common Share at $1.00 (Canadian) per share. One-half of the gross proceeds minus costs and expenses received from the saleof the Special Warrants will be subject to an escrow agreement and shall be paidto the Agent and deposited by the Agent in an interest bearing account until thecompletion of the Liquidity Event when such escrowed funds will be released toOrca. The Liquidity Event is defined as the completion of the proposed merger ofOrca with Antamena Capital Corp., and the subsequent trading of its shares onthe TSX Venture Exchange. Orca anticipates that the Liquidity Event will becompleted by June 30, 2008. Further C$3.5 million Financing with Pacific Road Pacific Road Resource Funds ("PRRF") comprising two Australian and oneinternational private equity resource funds has agreed to subscribe for afurther C$3.5 million in Special Warrants of Orca on terms identical to therecently completed financing by Union Securities, such additional placement toclose on or before April 15, 2008. The PRRF financing is non-brokered and noneof the proceeds will be subject to escrow. Following the Liquidity Event and upon conversion of the Special Warrants toCommon Shares of Orca, Minco's ownership in Orca will be approximately 60.3%.Minco's 30 million shares have a current value at $0.50 per share of $15 million(Canadian). Pursuant to an earlier financing agreement between Orca and PRRF, PRRF has anoption to provide up to US$32.5 million in project development financing forboth the Bilbao and Laguna projects. Chairman's Comment Commenting on the announcement, Roger Turner, Executive Chairman said: "We arevery pleased that the placement of additional Special Warrants to finance Orca'songoing exploration and development activities in Zacatecas, Mexico was so wellreceived and that Orca is now financed to proceed with the completion offeasibility studies on its Bilbao and Laguna projects." About Minco: Minco PLC is an AIM quoted precious and base metals exploration and developmentcompany with silver projects in Mexico and zinc exploration in Ireland. For further information, www.minco.ie or contact: Roger Turner: Executive Chairman & CEO +44 (0)20 7397 8155Terence McKillen: Director of Exploration & Business Development +1 416 362 6686Danesh Varma, CFO & Company Secretary +44 (0)20 7397 8154John Frain / Fergal Meegan: (NOMAD) Davy + 353 (0)1 6796363Tom McCormack (Ireland PR) ConneXions +353 (0)1 230 3015 This announcement has been issued through the Companies Announcement Service of The Irish Stock Exchange. This information is provided by RNS The company news service from the London Stock Exchange