Patagonia Gold Regulatory News (PGD)

9 Jan 2008 10:02

Patagonia Gold PLC09 January 2008 Patagonia Gold Plc ("Patagonia Gold" or the "Company") Placing to raise £2.25 million Patagonia Gold, the South American mining explorer, today announces that it hasagreed to place 45,000,000 new ordinary shares of 1p each in the Company("Placing Shares") at a placing price of 5p per share (the "Placing") to raise£2.25 million before expenses. The proceeds from the Placing will be used tofinance working capital and exploration expenditure. The Placing Shares will be subscribed for by the Argentinean Directors and theirfamily associates. Directors' discloseable interests are as set out below. ThePlacing is conditional on receipt of funds and admission of the Placing Sharesto trading on AIM. The Argentinean Directors will subscribe for Placing Shares as follows: Director Placing Shares Shareholding Percentage of Subscribed immediately enlarged issued following share capital Admission Carlos Miguens 16,822,960 73,817,825 18.32Gonzalo Tanoira 1,380,700 6,059,100 1.50 The Placing Shares will represent 11.17% of the then enlarged issued sharecapital of the Company. The number of Ordinary shares in issue following thePlacing, and the total number of voting rights, will be 402,922,913. The PlacingShares will rank pari passu with existing ordinary shares of 1p each in theCompany. The participation of the Argentinean Directors in the Placing is deemed to be arelated party transaction under the AIM Rules. The independent Directorsconsider, having consulted with Strand Partners Limited, the Company's nominatedadviser, that their participation in the Placing is fair and reasonable insofaras the Company's shareholders are concerned. As a result of this Placing, the aggregate holding of the Argentinean Directorsand their family associates in the Company has been increased to 49%. Enquiries: Patagonia GoldRichard Prickett/William HumphriesTel: +44(0)20 7409 7444 Conduit PR LtdLeesa Peters / Arabella HobbsTel: 020 7429 6666 Strand Partners LtdSimon Raggett / Angela PeaceTel: 020 7409 3494 This information is provided by RNS The company news service from the London Stock Exchange