Management Resource Solutions Regulatory News (MRS)

6 May 2005 07:30

Melrose Resources PLC06 May 2005 FOR IMMEDIATE RELEASE 6th May 2005 MELROSE RESOURCES PLC Placing of 1,700,000 new ordinary shares to raise £4.1 million Melrose Resources plc today announces that it has entered into arrangements,conditional inter alia on Admission, to place 1,700,000 new ordinary shares of10p each at 240 pence per share (the "Placing"), to raise up to approximately£4.1 million before expenses. The new ordinary shares, which are being placed byBell Lawrie (a division of Brewin Dolphin Securities Limited), representapproximately 2.4 per cent of the Company's existing issued share capital. Application will be made for these new ordinary shares to be admitted to theOfficial List and to trading on the London Stock Exchange's main market and itis expected that dealings will commence on 13th May 2005. The new ordinaryshares rank pari passu in all respects with the existing ordinary shares savethat they will not rank for the proposed dividend for the year ended 31 December2004. The net proceeds of the Placing will provide additional working capital whichthe Company intends to use to assist in funding exploration and developmentactivities in Egypt and Bulgaria. Three rigs are currently drilling on theCompany's concessions in Egypt and a rig is being contracted to drill oneexploration and one development well offshore Bulgaria with two furthercontingent wells, at the Company's option. Commenting on this, Robert Adair, Chairman, said: "We are planning an active drilling programme in the third quarter of this year.The potential of the programme is very exciting and the funds raised willprovide us with extra flexibility to respond to the results of that drillingprogramme." For further information please contact: Melrose Resources plc Robert Adair , Chairman 0184 553 7037David Curry, Chief Executive 0131 221 3360Munro Sutherland, Finance Director 0131 221 3360Chris Thomas, Corporate Development Director 0207 462 1603 Buchanan CommunicationsTim Thompson/Ben Willey 0207 466 5000 or visit www.melroseresources.com This information is provided by RNS The company news service from the London Stock Exchange