Business
Placing
Placing.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n Aurum Mining PLC\n08 May 2006\n\n\nFor immediate release 8 May 2006\n\n AURUM MINING PLC\n ('Aurum' or 'the Company')\n\n Placing to raise £2.5 million\n\n\nAurum Mining plc (AIM: AUR), the company formed to acquire gold and other\nmineral extraction projects in the Former Soviet Union (FSU), announces that\n2,777,778 new ordinary shares of 1 pence each in the share capital of the\nCompany (the 'Placing Shares') have been placed by Arbuthnot Securities Limited\nwith institutional investors at a price of 90 pence per share to raise\napproximately £2.5 million before expenses (the 'Placing'). The Placing Shares\nrepresent approximately 22.5 per cent. of the enlarged issued share capital of\nthe Company.\n\nThe net proceeds of the Placing will be used primarily for working capital\npurposes in order to complete the engineering design work required to complete\nthe feasibility study and conduct further drilling on exploration zones 2 and 3\nat the Company's Andash Project.\n\nApplication has been made to the London Stock Exchange for the Placing Shares to\nbe admitted to trading on AIM. The Placing Shares will rank pari passu with the\nexisting issued ordinary shares of 1 pence each in the share capital of the\nCompany (the 'Ordinary Shares'). The Placing is conditional, inter alia, on the\nadmission of the Placing Shares to AIM becoming effective ('Admission'), which\nis expected to occur on 12 May 2006, when dealings in the Placing Shares are\nexpected to commence. Following Admission, the Company will have 12,365,468\nOrdinary Shares in issue.\n\nOn 31 January 2005, a waiver was granted by the Panel on Takeovers and Mergers\nfrom the obligation of the Concert Party (as set out in the admission document\nsent to shareholders on 13 January 2005) to make an offer to all shareholders of\nthe Company pursuant to Rule 9 of the City Code on Takeovers and Mergers. This\nwaiver related to the potential allotment of up to 3,100,000 new ordinary shares\npursuant to the acquisition of Kaldora Company Limited and options over a\nfurther 1,000,000 Ordinary Shares granted to members of that Concert Party as\nset out in the admission document. As a result of the Placing set out above, the\npercentage holding of the Concert Party upon Admission will be reduced to 23.25\nper cent. and the potential shareholding of the Concert Party as a resul...