Angel Mining PLC Financing Update - Short Term Loan (4444I)

TIDMANGM

RNS Number : 4444I

Angel Mining PLC

25 July 2012

ANGEL MINING PLC

("Angel Mining" or the "Company", AIM: ANGM)

Financing Update - Short Term Loan

The Board of Angel Mining, the Greenland - focused mining and exploration company, is pleased to announce that it has agreed a further advance under its secured short term loan with FBC Holdings Sarl ("FBC") and its agent, Cyrus Capital Partners LP ("Cyrus") for US$1,750,000. The advance will be made available in two tranches. The first tranche of US$1.0 million will be drawn immediately. The second tranche of US$750,000 will be available to draw from 8th August 2012. The funds will be used for general working capital purposes. The advance is interest free and must be repaid by 30th November 2012.

The Company has also agreed to increase its management fee to Cyrus as originally announced on 31st August 2010 from 5% of deemed cash margin on sales to 6%. This change is in recognition of additional strategic advisory services which are being provided by Cyrus in relation to the funding of the Black Angel project.

Nick Hall, CEO of Angel Mining, commented: "The Company has made excellent progress since production recommenced following the failure of the main generator earlier this year. The additional working capital being provided will make a significant impact on our ability to achieve target production levels over the next few months. I am very grateful for the fact that FBC and Cyrus continue to provide us with vital support."

Enquiries:

 
 Angel Mining plc 
  Nicholas Hall, Chief Executive 
   Officer                              07931 709 053 
  Kevin McNair, Chief Financial 
   Officer                               07900 690 908 
 Fox-Davies Capital (Broker) 
  Daniel Fox-Davies/Simon Leathers       0203 463 5000 
 
 Bishopsgate Communications Limited 
  Nick Rome/ Anna Michniewicz/ Ivana 
  Petkova                                0207 562 3350 
 

Background to Angel Mining

Nalunaq

The Company first poured gold at Nalunaq on 27th May 2011 following final completion of the processing plant and is targeting optimal production during Q3 2012 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 currently 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 in the future.

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 
================================================================================ 
                     Category      Tonnage    Zinc    Lead   Silver    Mineable 
                                     (kt)      (%)     (%)    (g/t)    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 mineralisation at Deep Ice, Nunngarut and a number of other exploration targets within the licence 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.

More information on the Company is available on the website, please click here: http://www.angelmining.com/

This information is provided by RNS

The company news service from the London Stock Exchange

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