Anglesey Mining plc
Placing of new shares for £200,000
Anglesey Mining plc is pleased to announce that it has today
entered into a placing agreement to issue 12,500,000 new ordinary
shares, representing approximately 6.7% of the company’s current
issued share capital, at 1.6 pence
per share in in a private placing, to raise a total of £200,000
gross. Incoming Investors will also receive a warrant with a term
of 12 months to subscribe for new ordinary shares at an exercise
price of 1.8p for each new share issued under this placing.
The proceeds of the issue will be used to bring all of the QME
engineering and optimisation studies relating to the future
development of the Parys Mountain into a compliant basis by
incorporating the QME work into an updated Scoping Study or
Preliminary Economic Assessment, as appropriate, to be completed by
a Competent Person in accordance with the JORC Code or the
Canadian Institute of Mining Metallurgy and Petroleum Standards,
and for general working capital.
The Company will also seek out new properties suitable for
development that would be complementary to or provide synergies
with the Group’s existing projects within the financing capability
likely to be available. The Company has identified copper and other
VMS projects, and gold and precious metals, as the most potentially
attractive and continues to evaluate a number of early stage
opportunities.
Parys Mountain Update
The Parys Mountain property is a significant zinc, copper, lead,
silver and gold, with a reported a resource of 2.1 million tonnes
at 6.9% combined base metals in the indicated category and 4.1
million tonnes at 5.0% combined base metals in the inferred
category. On the basis of these resources, Micon
International carried out a Scoping Study in 2017 which reported
positive financial results.
As a follow on to this Scoping Study, QME Mining Technical
Services, a division of QME Ltd the Irish mining contractor, has
carried out an agreed programme of engineering and optimisation
studies relating to the future development of the Parys
Mountain.
The QME work is near to completion and we believe that upon
bringing it into a compliant basis for reporting standards it
should be possible to positively report a total resource figure
somewhere around 10 million tonnes at Parys Mountain, which is
significantly higher than the tonnage used in the earlier Scoping
Study. The Company expects to complete the updated Scoping
Study or Preliminary Economic Assessment later this
year.
The Company notes that with the current precious metal prices,
the value of gold and silver to be produced at Parys Mountain would
represent approximately 25% of the total revenue stream.
Bill Hooley, Chief Executive
stated “We are very pleased to announce this financing,
which represents significant support for Anglesey Mining. We look
forward to completion of the optimisation study and bringing it
into compliance and to advance the development of the Parys
Mountain project. We are also in the process of reviewing other
base metal and precious metal projects and we will keep
shareholders updated on developments.”
Admission and Total Voting Rights
The directors have authorised the proposed issue of the new
shares under the dispensation approved at the last AGM on
5th September 2019. The new
ordinary shares of 1 pence each to be
issued in respect of this transaction will rank pari passu with the
existing ordinary shares of the company. The transaction is
conditional on the admission of the new ordinary shares to the
Official List and to trading on the London Stock Exchange’s main
market.
Application will be made for these shares to be admitted to both
the Official List and to trading on the London Stock Exchange’s
main market for listed securities and it is expected that such
admission will become effective and dealings will commence on or
after 28th August 2020.
Following the allotment of these new ordinary shares becoming
unconditional, the issued ordinary share capital of the company
will be 199,475,732 ordinary shares of 1
pence each with voting rights; there are no shares held in
treasury. This figure may be used by shareholders as the
denominator for the calculations which will determine whether they
are required to notify their interest in the company, or any change
to that interest, under the Financial Conduct Authority’s
Disclosure and Transparency Rules.
About Anglesey Mining plc
Anglesey is carrying out development and exploration work at its
100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK with a reported resource of
2.1 million tonnes at 6.9% combined base metals in the indicated
category and 4.1 million tonnes at 5.0% combined base metals in the
inferred category
Anglesey holds an 10.0% interest, and management rights to the
Grangesberg Iron project in Sweden, together with a right of first refusal
to increase its interest by a further 50.1%.
Anglesey also holds 12% of Labrador Iron Mines Holdings Limited
which holds direct shipping iron ore deposits in Labrador and Quebec.
For further information, please contact:
Bill Hooley, Chief Executive
+07785-572517
Danesh Varma, Finance Director
07740-932766
Thomas Smith, ETX Capital,
020-73921432