Financing Update and Issue of Equity (7781S)

TIDMANGM

RNS Number : 7781S

Angel Mining PLC

25 November 2011

ANGEL MINING PLC

("Angel Mining" or the "Company")

   AIM:   ANGM 

Financing Update and Issue of Equity

The Board of Angel Mining is pleased to announce that it has revised and extended its financing agreement with YA Global Master SPV Ltd ("YAGM"), advised by Yorkville Advisors UK LLP ("Yorkville").

On 28 July 2011, the Company announced that it had entered into a promissory note with YAGM up to a maximum value of $3,654,000. The initial drawdown under the note was $1,350,000 and the Company made a subsequent drawdown of $855,000. Following an initial repayment, the outstanding balance of $1,855,000 was due to be repaid by 15 January 2012.

The Company has reached an agreement with YAGM whereby the Company will make an immediate repayment of $536,013 through the issue of 25,000,000 new ordinary shares of 1p each ("Ordinary Shares") shares at a price of 1.37p. This price represents a premium of 5.4% to the closing price of the Company's shares on 24 November 2011. This payment is comprised of $524,616 of principal and accrued interest of $11,397. Application has been made for the new Ordinary Shares to be admitted to trading on AIM and admission is expected to take place on Wednesday 30 November 2011.

In exchange for the share issue YAGM has agreed to extend the repayment schedule for the promissory note. Under the new schedule, the Company will make a series of payments commencing in March 2012 through to September 2012. Interest on the loan continues to accrue at 4% per annum.

The revised payment schedule agreed with YAGM is contingent on the Company also extending the repayment of its outstanding loan from Cyrus Capital Partners LP and affiliates thereof ("Cyrus") to a date falling on or after 31 December 2012. Whilst the Company has not yet concluded such an agreement with Cyrus, it is nonetheless confident that such an agreement will be reached on or before 11 December 2011. If such an agreement is not reached, the revised repayment schedule will be cancelled and all amounts outstanding to YAGM will fall due on 11 December 2011.

Nick Hall, CEO of Angel Mining, commented: "We are very pleased to have reached this agreement with Yorkville and YAGM. They have been supporting Angel Mining since 2009 through a variety of innovative and flexible financing facilities. By extending our repayment schedule, they have given us greater flexibility over the coming months to continue bringing Nalunaq up to target production and developing our plans for Black Angel."

Enquiries:

 
 Angel Mining plc 
  Nicholas Hall, Chief Executive Officer    07931 709 053 
  Kevin McNair, Chief Financial Officer      07900 690 908 
 Fox-Davies Capital (Nominated adviser 
  & Broker) 
  Simon Leathers                             0203 463 5010 
 Bishopsgate Communications Limited 
  Nick Rome/Shabnam Bashir                   0207 562 3350 
 

Background to Angel Mining

Nalunaq

The Company first poured gold at Nalunaq on 27 May 2011 following final completion of the processing plant and is targeting optimal production by Q4 2011 of approximately 24,000 oz per annum thereby providing the Company with cash flow which will be dedicated to funding development at Black Angel, further exploration at Nalunaq and reducing debt. The current mining plan anticipates a mine life of two to five years, subject to further exploration work. The directors anticipate that Nalunaq may enter into toll treatment arrangements with other potential gold mining activities in the region where appropriate. Angel Mining operates the only operational gold mine in the region and anticipates that its operation may be suitable for processing ore from other gold mining companies in the region.

Black Angel

The Black Angel project is a high grade zinc/lead project based around a previously developed mine in the north of Greenland. The table below sets out the JORC Code compliant mineral resources estimate for the Black Angel project which includes three sets of zones within the mine and three satellite deposits which have been explored.

 
        Summary of Black Angel Mineral Resources (JORC) as of 31 December 2007 
-------------------------------------------------------------------------------------- 
 
                              Tonnage (kt)    Zinc    Lead    Silver (g/t)    Mineable 
                 Category                     (%)     (%)                     reserves 
                                                                                (kt) 
-------------  -----------  --------------  ------  ------  --------------  ---------- 
Angel Zone       Indicated             791    13.0     4.5            25.0         218 
-------------  -----------  --------------  ------  ------  --------------  ---------- 
Cover Zone       Indicated             522     8.3     2.4            18.0         231 
-------------  -----------  --------------  ------  ------  --------------  ---------- 
Other zones 
 within the 
 Black Angel 
 mine            Indicated             697    10.4     3.3            13.0           - 
-------------  -----------  --------------  ------  ------  --------------  ---------- 
South Lakes 
 Glacier         Indicated           1,726     6.9     2.5            14.5           - 
-------------  -----------  --------------  ------  ------  --------------  ---------- 
Ark               Inferred             492     4.7     2.2            20.4           - 
-------------  -----------  --------------  ------  ------  --------------  ---------- 
Nunngarut 2      Indicated             196     9.0     3.4            31.0           - 
-------------  -----------  --------------  ------  ------  --------------  ---------- 
Nunngarut 2       Inferred               1     4.5     1.9             9.0           - 
-------------  -----------  --------------  ------  ------  --------------  ---------- 
Total                                4,425                                         449 
--------------------------  --------------  ------  ------  --------------  ---------- 
Source: Wardell Armstrong International Ltd. 
-------------------------------------------------------------------------------------- 
 

The project consists of three phases:

Phase I: Complete the rehabilitation of infrastructure to allow access to the mine, the mine camp and related facilities.

Phase II: Complete the detailed review of the pillar extraction programme within the Angel and Cover Zones, including the construction of the process plant and related systems to allow for the shipment of concentrate from the site.

Phase III: Develop a further exploration programme for the existing JORC resources at the Ark and Glacier deposits as well as identified mineralization at Deep Ice, Nunngarut and a number of other exploration targets within the license area (see the announcements made by the Company on 6 June 2006 titled "Black Angel 2006 Resource Statement" and on 30 November 2007 titled "Black Angel 2007 Resource Statement").

Dr Bob Dowdell is the qualified person that has reviewed and approved the technical information contained in this announcement. Dr Dowdell holds a BSc and Doctorate in Mining Engineering from Newcastle University and is a Chartered Engineer and Member of the Institution of Mining and Metallurgy. Dr Dowdell is a Competent Person for the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies dated June 2009.

This information is provided by RNS

The company news service from the London Stock Exchange

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