Business
Placing and Agreement of Debt
Placing and Agreement of Debt.
About this update from Metals Exploration Plc
[{"type":"text","content":"\n RNS Number : 4406L Metals Exploration PLC 12 January 2009 \n \nMETALS EXPLORATION PLC\n\nPLACING OF £3.7 MILLION\n\nAGREEMENT OF £8 MILLION DEBT FACILITY\n\nAppointment of New Board Member\n\nMetals Exploration PLC ('Metals Ex' or the 'Company') (AIM: MTL), the natural resources exploration and development company with assets in the Pacific Rim region, is pleased to announce that the Company has raised £3.7 million (before expenses) through a placing of new ordinary shares at a price of 7 pence per share (the 'Placing'). \n\nHighlights\n\n\n\nThe new funds will be directed primarily towards a Bankable Feasibility Study on the Runruno project, which should be completed by the end of 2009\n\n\n\n\n\nFollowing the placing Solomon Capital Limited, a Guernsey based private equity fund, will have a 29.9% stake in the Company\n\n\n\n\n\nDirectors of Metals Ex are subscribing for new shares to a value of £122,500 in the Placing\n\n\n\n\n\nThe Company has also agreed terms with Shelfco 725 Limited, a sister company of Solomon Capital, for an £8 million debt facility\n\n\n\n\n\nMr Timothy Dean has agreed to join the Board as a Non-Executive Director\n\n\n\n\nBackground to the Placing\n\nThe Placing has been undertaken to provide funds for the further development of the Company's 100% controlled Runruno gold-molybdenum project located on Luzon Island in the Philippines. The funds will be directed primarily towards the costs of producing a Bankable Feasibility Study on the Runruno project. \n\nThe completion of a Scoping Study in October 2008 forecast production of approximately 180,000oz gold and 1.7Mlb molybdenum per year with capital expenditure of US$208 million to include the molybdenum recovery circuit.\n\nThe study was based on an open pit operation using the BIOX® and carbon in leach processes to recover gold and molybdenum, and will form the basis for the Bankable Feasibility Study.\n\nDetails of the Placing\n\nA total of 52,834,721 new ordinary shares (the 'Placing Shares') will be issued pursuant to the Placing. The Placing Shares are being issued under the existing authorities granted to the Directors. \n\nSolomon Capital&nbs...