Issue of Equity
Hambledon Mining PLC
Hambledon Mining plc
(“Hambledon” or the “Company”)
Proposed Placing to raise approximately £2.8 million
The Board of Hambledon announces that it has conditionally raised
£2,814,000 (approximately £2.7 million net of expenses) by way of a
placing of 46,900,000 new ordinary shares of 0.1p each in the capital of
the Company (“Placing Shares”) at 6 pence per share (together the
“Placing”).
The net proceeds of the Placing will provide the Company with sufficient
funds to immediately commence ordering of equipment for and development
of underground operations at the Sekisovskoye mine in East Kazakhstan.
The Directors anticipate that the lead time for delivery of some of the
equipment could be five months and therefore wish to make an immediate
start on ordering of the necessary equipment.
The Placing Shares will be subscribed for by certain new and existing
institutional shareholders of the Company. The Placing is conditional,
inter alia, on admission of the Placing Shares to trading on AIM
(“Admission”). The Placing Shares will represent 9.09 per cent of the
issued ordinary share capital of the Company as enlarged by the Placing
and the total number of voting shares in issue immediately following
Admission will be 516,089,233. The Placing is not underwritten but, as
agent for the Company, Fairfax Securities I.S. PLC has conditionally
placed 46,900,000 Placing Shares with certain institutional investors.
Application will be made to the London Stock Exchange plc for the
Placing Shares to be admitted to trading on AIM and it is expected that
admission will take place at 8.30 a.m. on 30 September 2009. The Placing
Shares will, when issued, rank pari passu in all respects with the
Company’s existing ordinary shares of 0.1p each.
Commenting on today’s news, Nicholas Bridgen, Chief Executive of
Hambledon, said: Our institutional investors suggested to us that the
time was right to accelerate the underground project. We are delighted
that they have shown this confidence in us and supported us with further
investment. Although it has always been an integral part of our plans,
this will allow us to proceed immediately without waiting for the build
up of cash flow from operations. The prospect of a significant increase
in production is therefore taking a step nearer”.
Enquiries:
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Hambledon Mining plc
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Charles Zorab
Telephone +44 (0)207 233 1462
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Fairfax I.S. PLC
Nominated Adviser and Broker
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Ewan Leggat / Laura Littley
+44 (0)207 598 5368
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