Metminco Limited Metminco Raises Funding of A$1 Million (1614K)

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RNS Number : 1614K

Metminco Limited

19 September 2016

 
 ASX ANNOUNCEMENT   19 September 2016 
 

METMINCO RAISES FUNDING OF A$1 MILLION

Metminco Limited (Metminco or the Company) (ASX: MNC; AIM: MNC) announces the completion of a capital raising (the Placing).

The Placing

A total of 422,222,222 new fully paid ordinary shares of the Company (Shares) have been placed by SP Angel Corporate Finance LLP at a price of A$0.00237 (GBP0.00135) to sophisticated and professional shareholders under ASX Listing 7.1 and 7.1A, to raise approximately A$1.0 (GBP0.57) million.

Application will be made to the London Stock Exchange for the Shares to be admitted to trading on AIM. It is expected that trading of the 422,222,222 Shares will commence on the ASX on or around 30 September 2016, Sydney time, and on AIM at 8.00 a.m. on or around 30 September 2016, London time.

Use of Funds

Funds raised from the Placing will be applied towards the completion of a Feasibility Study at the Company's 100% owned Miraflores Project and for working capital.

As announced 8 September 2016, the Miraflores Scoping Study completed by SRK Consulting (USA) Inc. on an underground only mining operation producing approximately 50,000ozs of recovered gold per annum at life of mine cash cost (C1) of US$ 555 per oz for over 9 years, is considered to be financially robust and hence represents a viable development option.

Mr William Howe, Managing Director, commented: "The Placing forms part of the Company's strategy to advance the development of the Miraflores Project and the Company is now in a position to begin this development phase, whilst also assessing a number of strategies to fund the Project through to the construction phase.

The Miraflores Project, which forms part of the highly prospective Quinchia Gold Portfolio, represents a potential development opportunity for the Company and the recent study demonstrated the potential to produce strong cashflows early in the Project's life. The focus is firmly on advancing this near term opportunity that will transform the Company into a gold producer."

Shares in issue

Following admission of the Shares, the Company's enlarged issued share capital will comprise 4,301,275,769 ordinary shares with voting rights. This figure of 4,301,275,769 ordinary shares may 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.

William Howe

Managing Director

 
 
 Metminco Limited ABN       Level 6, 122 Walker Street, 
  43 119 759 349             North Sydney, NSW, 2060 
  ASX Code: MNC.AX; AIM      Tel: [phone]; 
  Code: MNC.L                Fax: [phone] 
                  www.metminco.com.au 
 
 
 For further information, 
  please contact: 
 
  METMINCO LIMITED 
 Stephen Tainton / Phil Killen      Office: +61 (0) 2 
                                     9460 1856 
 
 
   NOMINATED ADVISOR AND BROKER 
 RFC Ambrian 
 Australia 
 Will Souter / Nathan Forsyth       Office: +61 (0) 2 
                                     9250 0000 
 
 United Kingdom 
 Charlie Cryer                      Office: +44 (0) 20 
                                     3440 6800 
 
 JOINT BROKER 
 SP Angel Corporate Finance 
  LLP UK) 
 Ewan Leggat                        Office: +44 (0) 20 
                                     3470 0470 
 
 
 UK FINANCIAL PR                    Office: + 44 (0) 20 
  Camarco                            3757 4997 
  Gordon Poole / Tom Huddart 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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September 19, 2016 02:00 ET (06:00 GMT)