Proposed Placing

2 Nov 2007 07:01

Vane Minerals PLC02 November 2007 2 November 2007 VANE Minerals PLC ("VANE" or the "Company") Proposed Placing VANE Minerals PLC (AIM:VML) is pleased to announce that the Company hasprovisionally allocated an issue of 28,571,428 ordinary shares ("Ordinary Shares") to placees with a view to raising gross proceeds of approximately £5 million at a placing price of 17.5p per Ordinary Share ("Proposed Placing"). Completion of the Proposed Placing remains subject to the placees who compriseinstitutional investors in Canada and the United Kingdom, entering into formallybinding subscription agreements. The Proposed Placing is also conditional, interalia, on the approval of the Company's shareholders being granted for the issueof the Ordinary Shares. The net proceeds of the Proposed Placing are to be used primarily foraccelerating VANE's breccia pipe drilling campaign in northern Arizona, wherethe Company has 39 drill targets, and for proceeding to further rounds ofdrilling on the Company's six properties in Utah. It is envisaged that furtherdrilling at the North Alice Extension and North Wash in Utah should enable theCompany to produce a Canadian National Instrument 43-101 complaint resourcestatement in the early part of 2008. As previously notified to shareholders, VANE continues to be in discussions witha number of entities regarding potential joint venture/ acquisitionopportunities, all of which the Company is confident could add significantly tothe Company's portfolio of assets. Westwind Partners (UK) Limited is acting as lead agent (the "Lead Agent") forthe Proposed Placing in Canada and the United Kingdom and Ambrian PartnersLimited is acting as broker to the Proposed Placing in the United Kingdom. Matthew Idiens, Executive Director, commented "The Board of VANE is extremelypleased with the interest shown in the capital raising by new investors,especially from North America where our assets are primarily based and we arelooking forward to accelerating drilling with the intention of producing aresource statement early next year". It is expected that the necessary Extraordinary General Meeting (the "EGM") willbe convened and that the Placing will be completed on or before 30 November 2007(or such later date as the Company and the Lead Agent may agree being not laterthan 31 December 2007). A circular to the Company's shareholders convening theEGM will be despatched shortly. Enquiries: VANE Minerals PLC Westwind Partners (UK) Ambrian Partners Limited Parkgreen Communications LimitedMatthew Idiens Paul Newman Richard Brown Laura Llewelyn/Beth Harris+44 (0)20 7667 6332 +44 (0)20 7290 9713 +44 (0)20 7776 6417 +44 (0)20 7851 7480 For further information, please review: www.vaneminerals.com. About VANE Minerals: VANE was founded by the former international exploration team ofFreeport-McMoRan Copper & Gold Inc., one of the world's largest producers ofcopper and gold. The Company has assembled a highly qualified and experiencedmanagement team with a proven track record in exploration and development, whohave spent their entire careers searching for and defining large scale mineraldeposits. The Company is using the silver/gold production at the Diablito mine in Mexicoto help fund exploration work across its attractive portfolio. Since December 2004, VANE has built up a substantial uranium portfolio ofproperties in the Colorado Plateau region, initially targeting the Arizona stripwhich holds the highest grade deposits in the US, contained in breccia pipes. This information is provided by RNS The company news service from the London Stock Exchange