Business
Raises GBP30m in Placing
Raises GBP30m in Placing.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n Aurum Mining PLC\n26 February 2007\n\n\nFor Immediate Release 26 February 2007\n\n\n\n AURUM MINING PLC\n\n ('Aurum' or 'the Company')\n\n\n\n Placing to raise £30 million to fund construction of Andash Zone 1 mine\n\n\n\nAurum Mining plc (AIM: AUR) is pleased to announce that 30 million new ordinary\nshares of 1p each in the share capital of the Company (the 'Placing Shares')\nhave been placed by Arbuthnot Securities Limited, acting as the Company's\nNominated Adviser and Broker, at a price of 100p per share to raise\napproximately £30 million before expenses (the 'Placing'). The issue was fully\nsubscribed and marks the largest fundraising so far this year in the AIM\nmarket's mining sector.\n\n\n\nHighlights\n\n\n • Aurum has raised £30 million before expenses at 100p per share to fund the\n construction and commissioning of the open-cast mine at the Andash Zone 1\n gold and copper project in the Kyrgyz Republic.\n\n\n • Initial production at Andash Zone 1, which contains reserves of 1.1\n million ozs of gold and gold equivalent, is expected to begin in 2008,\n marking Aurum's transition from an exploration company to a gold producer.\n\n\n • The Andash Zone 1 mine will be funded entirely through the equity raised\n in the Placing, and there will be no requirement for debt or associated\n hedging.\n\n\n • The Placing will also support Aurum's exploration programme within other\n areas of the Andash licence.\n\n\nMark Jones, Aurum Mining's Chief Executive, said: 'We are delighted by the\nsuccess of this Placing which will fully fund the construction and commissioning\nof the Andash Zone 1 mine and which should take the Company through to positive\ncashflows. The strength of demand for shares in this Placing underlines the high\nquality of the Andash resource and the robustness of our strategy to monetise\nboth Zone 1 and the other exploration areas within the Andash licence.'\n\n\nDetails of the Placing\n\n\nA total of 30 million new ordinary shares of 1p each in the share capital of the\nCompany (the 'Placing Shares') have been placed by Arbuthnot Securities Limited,\nacting as the Company's Nominated Adviser and Broker, at a price of 100p per\nshare to raise approximately £30 million before expenses (the 'Placing'). The\nPlacing Shares represent approximately 71 per cent of the enlarged issued share\ncapital o...