Last checked at 7 Dec 2012 07:00
7 December 2012
AURUM MINING PLC
(AIM: AUR)
Issue of Equity
Aurum Mining plc ("Aurum" or "the Company"), the gold and tungsten explorer whose operations are focused in Spain, announces a successful placing raising gross proceeds of £693,960 ("the Placing").
Details of the Placing
The Placing involves the issue of 23,131,988 ordinary shares of 1 pence each ("Ordinary Shares") at a price of 3 pence ("the Placing Price") per Ordinary Share ("the Placing Shares"). The Placing Price represents a discount of 0 per cent. to the closing price of 3 pence per Ordinary Share on 6 December 2012, being the last dealing day prior to the announcement of the Placing. The Placing was fully subscribed and subscribers to the Placing include a combination of both existing Shareholders and new investors.
Along with existing funds, the proceeds of the Placing will enable the Company to embark on aggressive exploration programmes at each of its gold and tungsten projects.
Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that admission will become effective at 8.00 a.m. on 12 December 2012 ("Admission"). Immediately following Admission the Company's issued share capital will consist of 141,291,930 Ordinary Shares ("Enlarged Share Capital") and the Placing Shares will represent approximately 16.37 per cent. of the Enlarged Share Capital.
The Placing Shares will rank pari passu in all respects with the existing Ordinary Shares. It is expected that CREST accounts will be credited with entitlements to Placing Shares as soon as practicable after 8.00 a.m. on the day of Admission or that share certificates (as the case may be) will be despatched as soon as practicable after Admission.
Related party interests
The following directors ("the Participating Directors") have participated in the Placing:
Placing Shares | Revised Total Holding | % of Enlarged Share Capital | |
Christopher Eadie | 166,667 | 1,000,001 | 0.71 |
Haresh Kanabar | 333,334 | 841,668 | 0.60 |
As directors of Aurum, the Participating Directors' involvement in the Placing is classified under the AIM Rules as a related party transaction. The independent directors of Aurum, that is the directors excluding the Participating Directors, having consulted with the Company's nominated adviser, WH Ireland Limited, consider that the terms of this transaction are fair and reasonable insofar as the Company's shareholders are concerned.
In addition, DW Pension Fund ("DWPF"), a substantial shareholder in Aurum, has subscribed for 4,600,000 Placing Shares. This subscription is also classified under the AIM Rules as a related party transaction. Immediately following Admission, the revised total holding of DWPF will be 30,000,000 Ordinary Shares representing approximately 21.23% of the Enlarged Share Capital. The directors of Aurum, having consulted with the Company's nominated adviser, WH Ireland Limited, consider that the terms of this related party transaction are fair and reasonable insofar as the Company's shareholders are concerned.
Voting rights
In accordance with the Disclosure and Transparency Rules (DTR 5.6.1R) the Company hereby notifies the market that immediately following Admission of the Placing Shares its issued share capital will consist of 141,291,930 Ordinary Shares. The Company does not hold any shares in treasury. Shareholders may use this figure as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in, the Company under the FSA's Disclosure and Transparency Rules.
Contacts: | |
Aurum Mining plc | www.aurummining.net |
Chris Eadie, Chief Executive Officer | +44 (0) 20 7499 4000 |
WH Ireland Limited | Nominated Adviser & Broker |
Marc Davies / Mike Coe | +44 (0) 117 945 3470 |
Newgate Threadneedle | Financial PR |
Graham Herring / Beth Harris / Richard Gotla | +44 (0) 20 7653 9853 |
Notes to Editors:
Aurum Mining is an AIM listed exploration and development company focused on its highly prospective portfolio of gold and tungsten assets in North West Spain.
Gold
Through its joint venture agreement with Ormonde Mining plc (AIM: ORM), Aurum currently has a 60% interest in the Pino de Oro project in Zamora Province and a 54% interest in the Peralonso and Cabeza projects in Salamanca Province.
Tungsten
Aurum's 100% owned Morille Tungsten project is located approximately 15km south west of Salamanca in North West Spain and covers an area of 5,796 hectares. The permit area is a 'brownfield' site with historical data indicating the production from the site of high quality tungsten concentrates from mineralisation grading up to 1% WO3. This historic work will provide key information on where initial exploration targets are located.