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RNS

£1.25 million Placing to Fund Drilling Programme

Released 07:00 22-Jan-2013

RNS Number : 0478W
Sovereign Mines of Africa PLC
22 January 2013
 

 

22 January 2013

 

Sovereign Mines of Africa PLC

("SMA" or "the Company")

 

£1.25 million Placing to Fund Next Stage of Drilling Programme

 

Sovereign Mines of Africa PLC, the gold mining exploration company with properties in the Republic of Guinea in West Africa, is pleased to announce that the Company has raised £1.25 million through a placing by Shore Capital Stockbrokers Limited ("Shore Capital") of 41,666,667 new ordinary shares (the "Placing Shares") with institutional and other investors at a price of 3.0p each (the "Placing").

 

The proceeds from the Placing will be used to fund the next major drilling programme on the Company's Mandiana-Magana property and for working capital requirements, with a view to achieving SMA's aim of delineating a maiden gold resource for the project at a tonnage and grade to support a bulk-mineable open-pit operation.   

 

The Company currently anticipates conducting a drilling campaign at Mandiana-Magana of approximately 10,000 metres, which will likely comprise c. 9,000 metres of Reverse Circulation ("RC") drilling and approximately 1,000 metres of diamond drilling, as deeper extensions to a few selected RC holes. It is hoped that drilling operations will commence in late Q1 or early Q2 2013, subject to the timely engagement of relevant contractors.

 

David Pearl, Chairman of SMA, said:

 

"We are delighted to have received institutional investor backing for the next phase of our drilling programme. Results from our exploration work to date - Phase 1 results announced 26 January 2012 and Phase 2 results announced 8 August 2012 - have been very encouraging as most of our drilling to date has cut what we believe to be ore-grade gold mineralization over broad intervals. See also www.sovmines.com.

 

John Barry, Exploration Director, added

 

"We are focused on the discovery and exploration of large scale gold systems in the most under-explored gold belts of West Africa. Drilling to date at the Yagbelen Prospect has established a strong base to build substantial resources within the Mandiana-Magana gold property. In order to probe the best parts of this very large mineralizing system, the upcoming drill-program will also include the very first drill-testing of three new compelling prospects along the mineralized trend."

 

 

The Placing Shares will rank pari passu in all respects with the Company's existing ordinary shares and will represent 17.6% of the Company's enlarged issued share capital.   Application has been made for the Placing Shares to be admitted to trading on AIM ("Admission") and Admission is expected to occur, and dealings are expected to commence at 8.00 am on 29 January 2013.

 

Following Admission, the Company's issued share capital will consist of 236,358,850 ordinary shares, with each ordinary share carrying the right to one vote.  The Company does not hold any ordinary shares in treasury.  This figure of 236,358,850 may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

 

 

-     Ends -

 

Enquiries:

 

SOVEREIGN MINES OF AFRICA PLC

David Pearl, F.C.A. - Chairman                                         +353 696 8961

david.pearl@pearlcp.com

John Barry - Exploration Director                                      +353 8 7669 5608

Nathan Steinberg - Finance Director                                 +44 20 7269 7680

 

SHORE CAPITAL - NOMINATED ADVISER & BROKER

Toby Gibbs/Bidhi Bhoma - Corporate Finance

Jerry Keen - Corporate Broking                                         +44 20 7408 4090

 

SQUARE1 CONSULTING LIMITED

David Bick/Mark Longson                                                   +44 20 7929 5599

 

NEWGATE THREADNEEDLE

Graham Herring                                                                  +44 20 7653 9858

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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£1.25 million Placing to Fund Drilling Programme - RNS