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28 Nov 2008 11:52
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28Β November 2008
Minco PlcΒ toΒ raise Β£1,000,000
Dublin,Β 28Β Β November, 2008Β -Β Minco plc (AIM -"MIO"),Β theΒ IrishΒ exploration and development company announcesΒ thatΒ itΒ hasΒ raisedΒ Β£1,000,000,Β before expenses,Β by way of a privateΒ placementΒ ofΒ 40,000,000 newΒ OrdinaryΒ SharesΒ ("Shares")Β atΒ two and a half pence Β£0.025Β per shareΒ ("Placing Shares").Β
TheΒ netΒ fundsΒ raised in the placingΒ will be applied toΒ the Pallas Green zinc exploration project inΒ Ireland,Β and forΒ general corporate purposes and working capitalΒ
Directors of the Company have agreed to subscribe for the following Placing Shares:
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Director John F. Kearney Terence N. McKillen Peter McParland Danesh Varma |
Placing Shares subscribed for 6,000,000 4,000,000 3,000,000 3,000,000 |
Resulting holding of Ordinary Shares 7,636,363 7,509,295 3,000,000 3,260,870 |
% of Enlarged Share Capital 3.66% 3.60% 1.44% 1.56% |
ApplicationΒ will beΒ made for the admission of theΒ Placing Shares to trading onΒ theΒ AIMΒ Market and it is expected thatΒ dealings will commence onΒ 5 DecemberΒ 2008. The Placing Shares will rankΒ pari passuΒ in all respects with theΒ existing Shares.Β Β Following AdmissionΒ there will beΒ 208,843,103Β Shares in issue.
Clubb Capital Ltd. acted as advisor to Minco in connection with the placement of the Shares. The Company has agreed to pay Clubb an advisory fee of 2.5% of the gross proceeds.
Commenting on theΒ placement financing, John Kearney, Executive Chairman of Minco said: "We haveΒ completed what we believe is aΒ reasonableΒ deal for the Company given the currentΒ weaknessΒ inΒ the financial marketsΒ and the volatility in the Company's share price. TheΒ financing will enable the Company to maintain its position in the Pallas GreenΒ zinc explorationΒ project which we believe has all of the indications of a new zinc mine in the making."Β
Update on Pallas Green
The 2008 planned drilling program at the Pallas Green zinc lead exploration project inΒ IrelandΒ forecast the completion of 50,000Β metres. To the end of October a total of 41,500Β metresΒ had beenΒ drilled in a total of 99 holes. It is expected that a further approximately 2,700Β metresΒ in 14 holes will be completed prior to year end, which should bring the grand total for the year to approximately 44,200Β metres, in a grand total of 113 holes,Β inΒ what is regarded as a very successful program and with very encouraging results.
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As the 2008 program moves towards its conclusion the number of drill rigs operating at Pallas Green has been reduced to ten and will be further reduced to four or five during December as the holes currently being drilled are completed. It is expected that, subject to conditions, three or four rigs will continue drilling during the winter months.
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The exploration program for Pallas Green for 2009 has not yet beenΒ finalised.Β Once all outstanding assays from the 2008 field program have been received and the results compiled, the proposed program and budgetΒ forΒ 2009 will be submitted to the joint venture partners for approval.
About Minco:
Minco PLC is an AIM quoted precious and base metals exploration andΒ development companyΒ engaged in zinc exploration inΒ IrelandΒ in a joint venture with Xstrata Zinc and investments in zinc-silver projects inΒ MexicoΒ through a 60% shareholding in Xtierra Inc. which recently listed on the TSX Venture Exchange (Toronto) under the symbol "XAG".
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AboutΒ ClubbΒ Capital:
Clubb Capital, regulated by theΒ UK'sΒ Financial Services Authority, has since 1995Β specialized in raising primary equity from European institutions for small and medium capitalization listed companies, particularly those operating in the energy, mining and biotechnology sectors.
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For further information,Β www.minco.ieΒ or contact: Β |
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John Kearney: Executive ChairmanΒ |
+1 416 362 6686 |
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Terence McKillen: Chief Executive |
+1 416-362-8243 |
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Danesh Varma: CFO & Company Secretary |
+44 (20) 7489 7555 |
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John Frain / Fergal Meegan: (NOMAD) Davy |
+353 (0)1 6796363 |
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