Serabi Regulatory News (SRB)

30 Mar 2006 10:53

Serabi Mining plc30 March 2006 SERABI MINING PLC ANNOUNCES SHARE PLACING LONDON 30 March 2006: Serabi Mining plc ("Serabi" or "the Company"), theBrazilian gold mining and exploration company, is pleased to announce that ithas conditionally placed, in aggregate, 6,500,000 new ordinary shares of 10peach (the "Placing Shares") at a price of 40p per Placing Share. Once completed,the Placing will raise approximately £2.46 million (net of expenses). The proceeds raised from the Placing will be used to fund several productivityenhancing initiatives designed to improve the profitability of the Palito GoldMine in the short-term, and to accelerate its exploration programme throughoutthe Jardim do Ouro District and Tapajos Region. The Placing Shares will be placed with institutional investors, and dealings inthe Placing Shares are expected to commence on AIM at 8.00 a.m. on 5 April,2006. The Placing Shares are equivalent to approximately 6.3% of the Company'sexisting issued ordinary share capital, and when issued, will representapproximately 5.9% of the Company's enlarged issued share capital. KBC Peel Hunt is acting as nominated adviser and broker to Serabi, and AmbrianPartners is acting as joint broker. Commenting on the Placing, Serabi Chairman, Graham Roberts said: "The funds raised will enable Serabi to reduce operating costs at Palito,improve productivity throughout the operation and enhance the infrastructurerequired to grow Palito into a long life, low cost mining operation. As a resultof these initiatives, we expect to declare commercial production at Palito inthe second half of 2006. Ongoing work at the Company's portfolio of projects in the Tapajos is yieldingencouraging results which we believe justifies an accelerated explorationprogramme for 2006. We expect we will be able to report to shareholders thefirst set of drilling results from this drilling programme in the near future." For further information please contact: Graham Roberts Tel: +44 (0)20 7220 9550 Chairman Clive Line Tel: +44 (0)20 7220 9553 Finance Director Chris Sattler Tel: +44 (0)20 7220 9552 Manager, Corporate Development David Davies/Matt Goode Tel: +44 (0)20 7418 8900 KBC Peel Hunt Richard Chase Tel: +44 (0)20 7776 6461 Ambrian Partners Email: contact@serabimining.com Web: www.serabimining.com This information is provided by RNS The company news service from the London Stock Exchange