Metals Exploration Regulatory News (MTL)

14 Sep 2005 13:38

Metals Exploration PLC14 September 2005 Metals Exploration plc ("MetalsEx" or "the Company") Placing to raise £1.25 million 14 September 2005 HIGHLIGHTS • £1.25 million raised (before expenses) through an institutional placing • Funds will be primarily used to advance the Company's Runruno gold-molybdenum project in the Philippines • Management team with extensive corporate experience and proven track record in mineral exploration, project development and feasibility studies MetalsEx is an AIM-quoted gold and copper exploration company with a focus onthe Philippines. The Company is delighted to announce that it has raised £1.25 million (beforeexpenses) through a placing (the "Placing") of 15,625,000 new ordinary shares of1 pence each at 8 pence per ordinary share (the "Placing Shares") through itsbroker WH Ireland Limited. The Placing Shares are to be issued together with onewarrant for each two Placing Shares subscribed, each warrant entitling theholder to subscribe for one ordinary share in the Company at 20 pence per sharefor a period up to 24 months from the date of admission of the Placing Shares totrading on AIM (the "Warrants"). Application has been made for the Placing Shares to trade on AIM and it isexpected that dealings in the Placing Shares will commence on 15 September 2005. The Placing Shares will rank pari passu in all respects with the existingshares in issue. Under the terms of an agreement of December 2004 ("the Agreement") with EastWest Drilling (L) Limited ("EWL"), the Company on 12 September 2005 issued1,500,000 ordinary shares in the Company following the application by EWL of asuccess fee payable to them for the subscription of these shares under the termsof the Agreement ("the Allotment"). Application has been made for these sharesto trade on AIM and it is expected that dealings in them will commence on 19September 2005. Under the terms of the Agreement, a warrant to subscribe for2,000,000 ordinary shares in the Company at 3.25 pence per share was also issuedto EWL. The number of shares in issue following the Placing and the Allotment will be47,168,332. The funds raised by the Placing will enable MetalsEx to advance its portfolio ofexploration projects in the Philippines. In particular, a significant portionof the funds will be used to conduct drilling operations at the Company'sRunruno project, where the main mineralised zone has been delineated at surfaceover a strike length of some 2.2 kilometres, with widths averaging about 100metres and depths of more than 400 metres down-dip. Previously drilling andresource estimation activities carried out during the 1970s outlined a resourceof 13.4 Mt @ 1.4 g/t Au. More recent work by the Company has indicated that theresource could possibly be increased quite significantly and an initial targetsize of approximately 50Mt @ >1.4 g/t Au (+ molybdenum) is the subject of thecurrently proposed drilling programme. Company Chairman, Steven Smith, said: "The Placing provides MetalsEx withfurther institutional support and enables us to take advantage of theopportunities being identified in our projects in the Philippines. The moniesare being raised partly in order to further advance the Company's drilling atthe Runruno Project and partly for working capital purposes and the continuationof the exploration work on the Masapelid and Puray Projects." Enquiries: Steven Smith - Chairman +44 (0) 7797 721 858Jonathan Anderson - Investor Relations +44 (0) 7950 410 680 or + 63 (0) 916 226 7575Philip Haydn-Slater - W.H Ireland +44 (0) 20 7220 1666 Company History: On 22 October 2004, the Company's ordinary shares were admitted to trading onAIM. Following the Company's admission, MetalsEx focused its efforts on theacquisition of a significant interest in four mineral exploration projects,Masapelid, Runruno, Jaclupan and Puray (the "Projects"). Each of the Projectsis located in the Philippines. On 23 December 2004, the Company entered into an agreement to acquire a 70 percent. interest in the Masapelid Project. The Masapelid gold exploration projectcomprises one mineral production sharing agreement covering the entire MasapelidIsland, located in the well mineralised Surigao del Norte district of thePhilippines. On 1 February 2005, the Company entered into an agreement to acquire a 70 percent. interest in the Runruno project. The Runruno gold, molybdenum and copperdeposit comprises an Exploration Permit located approximately 200 kilometresNorth-Northeast from the city of Manila and covers an area of approximately3,091 hectares. The Company has been advised that all documents andrequirements for the approval of the assignment of the exploration permit inrespect of the Runruno project from Greenwater Mining Corporation to FCF MiningCorporation are in order and the Director of the Mines and Geosciences Bureau inthe Philippines has endorsed this assignment to the Secretary of the Departmentof Environment and Natural Resources ("DENR Secretary"). Metals Ex expects toreceive the final approval from the DENR Secretary shortly. On 18 February 2005, the Company entered into an agreement to acquire theJaclupan project's Exploration Permit Application. The Jaclupan gold and copperproject's tenement application is with regard to an area of the Cebu Island inthe Central Visaya's region of the Philippines. Following the entering into of an agreement on 28 June 2005 and the subsequentexercise of an option, the Company has acquired a 100 per cent. interest in thePuray project's Exploration Permit Application. The Puray copper-gold-zinc-silver project covers an area of approximately 6,075 hectares and is locatedsome 28 kilometres northeast of the city of Manila. Further details of the projects are contained in the announcements released by,or on behalf of, the Company to its Regulatory Information Service. This information is provided by RNS The company news service from the London Stock Exchange