Business
Placing of £12 million
Placing of £12 million.
About this update from Metals Exploration Plc
[{"type":"text","content":"\n RNS Number : 8794R Metals Exploration PLC 07 May 2009 \nMetals Exploration plc\n\nPlacing of £12 million\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 conditionally raised £12 million (before expenses) through a placing of 104,347,828 new ordinary shares at a price of 11.5 pence per share (the 'Placing').\n\nHighlights\n\n\n\n£12 million fundraising at 11.5 pence per share\n\n\nMajor shareholder Solomon Capital has committed to increase its interest in the Company from 29.9% to 44.1% subject only to regulatory and shareholder approval\n\n\nBankable Feasibility Study funded to completion\n\n\nStep out drilling for gold and drill testing of a potential copper porphyry planned\n\n\n£8 million debt facility arranged in January 2009 to be terminated\n\n\n\nBackground to the Placing\n\nThe Company is pleased to announce a conditional Placing of £12 million.\n\nSolomon Capital Limited ('Solomon') has conditionally subscribed for £8 million in the Placing, which would increase its interest in the Company from 29.9% to 44.1%. As set out below, the increase in Solomon's interest to 30% or more of the issued share capital is subject to a waiver from the Panel on Takeovers and Mergers (the 'Panel') and such waiver being approved by independent shareholders. As a result, the Placing will be in two tranches of approximately £5.72 million and £6.28 million. Further information on the Placing is set out below under 'Details of the Placing'.\n\nThe funds raised will be used:\n\n\n\nTo complete the ongoing Bankable Feasibility Study ('BFS') on the Company's Runruno project;\n\n\nTo fund a drilling programme outside the existing resource boundary with the aim of adding to the existing 2 million ounce gold resource;\n\n\nTo fund a separate exploration programme and associated drilling to test for copper porphyry potential at Runruno; and\n\n\nTo provide resources to enable a smooth transition to mine development on c...