REG-Anglesey Mining PLC: Placing for £200,000 and issue of warrants

Anglesey MiningAnnouncement

24/08/2020 12:00

Anglesey Mining plc

Placing of new shares for £200,000

Anglesey Mining plc is pleased to announce that it has today entered into a
placing agreement to issue 12,500,000 new ordinary shares, representing
approximately 6.7% of the company’s current issued share capital, at 1.6
pence per share in in a private placing, to raise a total of £200,000 gross.
Incoming Investors will also receive a warrant with a term of 12 months to
subscribe for new ordinary shares at an exercise price of 1.8p for each new
share issued under this placing.

The proceeds of the issue will be used to bring all of the QME engineering and
optimisation studies relating to the future development of the Parys Mountain
into a compliant basis by incorporating the QME work into an updated Scoping
Study or Preliminary Economic Assessment, as appropriate, to be completed by a
Competent Person in accordance with the JORC  Code or the Canadian Institute
of Mining Metallurgy and Petroleum Standards, and for general working capital.

The Company will also seek out new properties suitable for development that
would be complementary to or provide synergies with the Group’s existing
projects within the financing capability likely to be available. The Company
has identified copper and other VMS projects, and gold and precious metals, as
the most potentially attractive and continues to evaluate a number of early
stage opportunities.

Parys Mountain Update

The Parys Mountain property is a significant zinc, copper, lead, silver and
gold, with a reported a resource of 2.1 million tonnes at 6.9% combined base
metals in the indicated category and 4.1 million tonnes at 5.0% combined base
metals in the inferred category.  On the basis of these resources, Micon
International carried out a Scoping Study in 2017 which reported positive
financial results.

As a follow on to this Scoping Study, QME Mining Technical Services, a
division of QME Ltd the Irish mining contractor, has carried out an agreed
programme of engineering and optimisation studies relating to the future
development of the Parys Mountain.

The QME work is near to completion and we believe that upon bringing it into a
compliant basis  for reporting standards it should be possible to positively
report a total resource figure somewhere around 10 million tonnes at Parys
Mountain, which is significantly higher than the tonnage used in the earlier
Scoping Study.  The Company expects to complete the updated Scoping Study or
Preliminary Economic Assessment later this year.  

The Company notes that with the current precious metal prices, the value of
gold and silver to be produced at Parys Mountain would represent approximately
25% of the total revenue stream.

Bill Hooley, Chief Executive stated “We are very pleased to announce this
financing, which represents significant support for Anglesey Mining. We look
forward to completion of the optimisation study and bringing it into
compliance and to advance the development of the Parys Mountain project. We
are also in the process of reviewing other base metal and precious metal
projects and we will keep shareholders updated on developments.”

Admission and Total Voting Rights

The directors have authorised the proposed issue of the new shares under the
dispensation approved at the last AGM on 5th September 2019.  The new
ordinary shares of 1 pence each to be issued in respect of this transaction
will rank pari passu with the existing ordinary shares of the company. The
transaction is conditional on the admission of the new ordinary shares to the
Official List and to trading on the London Stock Exchange’s main market.

Application will be made for these shares to be admitted to both the Official
List and to trading on the London Stock Exchange’s main market for listed
securities and it is expected that such admission will become effective and
dealings will commence on or after 28th August 2020.

Following the allotment of these new ordinary shares becoming unconditional,
the issued ordinary share capital of the company will be 199,475,732 ordinary
shares of 1 pence each with voting rights; there are no shares held in
treasury.  This figure may be used by shareholders as the denominator for the
calculations which will determine whether they are required to notify their
interest in the company, or any change to that interest, under the Financial
Conduct Authority’s Disclosure and Transparency Rules.

About Anglesey Mining plc

Anglesey is carrying out development and exploration work at its 100% owned
Parys Mountain zinc-copper-lead deposit in North Wales, UK with a reported
resource of 2.1 million tonnes at 6.9% combined base metals in the indicated
category and 4.1 million tonnes at 5.0% combined base metals in the inferred
category

Anglesey holds an 10.0% interest, and management rights to the Grangesberg
Iron project in Sweden, together with a right of first refusal to increase its
interest by a further 50.1%.

Anglesey also holds 12% of Labrador Iron Mines Holdings Limited which holds
direct shipping iron ore deposits in Labrador and Quebec.

For further information, please contact:
Bill Hooley, Chief Executive +07785-572517
Danesh Varma, Finance Director 07740-932766
Thomas Smith, ETX Capital, 020-73921432



Copyright (c) 2020 PR Newswire Association,LLC. All Rights Reserved