Placing

19 Jul 2007 13:07

Patagonia Gold PLC19 July 2007 Patagonia Gold Plc ("Patagonia Gold" or the "Company") Placing to raise £2 million Patagonia Gold, the South American mining explorer, today announces that it hasagreed to place 23,529,412 new ordinary shares of 1p each in the Company("Placing Shares") at a placing price of 8.5p per share (the "Placing") to raise£2 million. The proceeds from the Placing will be used to finance workingcapital and exploration expenditure. Placing Shares to the value of £1,062,250 will be subscribed for by Directorsand their family associates. Directors' discloseable interests are as set outbelow. The Placing is conditional on admission of the Placing Shares to AIM. The Directors will subscribe for Placing Shares as follows: Director Placing Shares Shareholding Percentage of Subscribed immediately enlarged issued following Admission share capital Carlos Miguens 4,517,598 56,216,554 15.71William Humphries 732,353 9,232,353 2.58Gonzalo Tanoira 370,769 4,730,506 1.32 The Placing Shares represent 6.57% of the enlarged issued share capital of theCompany. The number of Ordinary shares in issue following the Placing, and thetotal number of voting rights, will be 357,922,913. The Placing Shares will rankpari passu with existing ordinary shares of 1p each. Application will be madefor admission of the Placing Shares to trading on AIM, and is expected to takeplace on 30 July 2007. The participation of certain directors in the Placing is deemed to be a relatedparty transaction under the AIM Rules. The independent directors consider,having consulted with Strand Partners Limited, the Company's nominated adviser,that their participation in the Placing is fair and reasonable insofar as itsshareholders are concerned. Enquiries: Patagonia Gold Richard Prickett/William HumphriesTel: +44(0)20 7409 7444 Anthony Cardew/Tim RobertsonTel: 020 7930 0777 This information is provided by RNS The company news service from the London Stock Exchange