Vast Resources Regulatory News (VAST)

6 Jul 2007 09:17

African Consolidated Resources Plc06 July 2007 African Consolidated Resources Plc06 July 2007 African Consolidated Resources Plc (the "Company") Update African Consolidated Resources plc, an AIM listed exploration company, notes therecent rise in its share price and wishes to update shareholders as follows: Further fundraising At admission to AIM in June 2006 the Company reduced its initial fundraisingfrom £8 million to £4 million as a result of market conditions. Accordingly,anticipating that further funding would be required in due course in order tofinance general exploration with a particular emphasis on further exploration ofthe extensive prospective nickel ground held by the Company, the Company hassought and received indications of support from some existing shareholders and alimited number of other parties for a fundraising. The Company therefore intends to pursue a fundraising of £4.5 million at oraround 14.5p per share and will make a further announcement in this regard indue course. Marange Following the announcement of ongoing dialogue with relevant parties on 2 July2007, there have been no further developments with respect to the hearing in theZimbabwe High Court of its civil action in order to recover the Marange deposit.The fundraising noted above is not conditional on the outcome of the civilaction. Should there be a successful outcome to the Marange issue then the Company willaggressively pursue the exploitation of that deposit as a priority. Accordingly,a substantial part of the funds raised through the subscription would beutilised as initial production finance for the Marange operation. Should there be an unsuccessful outcome to the Marange action, then there is apossibility that the Company may itself be the subject of a charge underZimbabwe law for illegal possession of diamonds. Whilst the Company has takenlegal advice and is comfortable that such a charge would be without foundation,it is an illustration of the potential risks of the environment in which itoperates. The Company would like to re-iterate that at this point there can be nocertainty as to the outcome of the civil action or any agreement on theownership and operations of the Marange deposit prior to that action.Accordingly, shareholders are advised to exercise caution when dealing in theCompany's securities until a further announcement is made. Enquiries: African Consolidated Resources Plc Andrew Cranswick +44 7920 189010Roy Tucker +44 1622 816918 +44 7920 189012 Evolution Securities Simon Edwards/Lloyd Thomas +44 7071 4300 This information is provided by RNS The company news service from the London Stock Exchange