Placing and Nalunaq Production update (7923A)

TIDMANGM

RNS Number : 7923A

Angel Mining PLC

04 April 2012

4 April 2012

ANGEL MINING PLC

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

Placing and Nalunaq Production update

HIGHLIGHTS

   --      Oversubscribed Placing to raise GBP1.0 million ($1.6 million) 
   --      Nalunaq to recommence full scale gold production this week 

The Board of Angel Mining is pleased to announce that it has completed an oversubscribed placing of shares to raise GBP1.0 million (the "Placing"). Under the Placing, the Company has conditionally raised GBP1.0 million through the issue of 71,428,565 new ordinary shares of 1p each in the Company ("Ordinary Shares") to investors at 1.4p per share. 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 11 April 2011.

The new funds will be used to:

   --     make payments to overdue creditors; 
   --     ensure the continuity of oil and other essential supplies to Nalunaq; and to 
   --     progress detail design work for the Black Angel project. 

The Company is also pleased to confirm that full scale production from Nalunaq should recommence later this week. As was announced on 8 March 2012, the main generator at Nalunaq was badly damaged by the loss of a piston which damaged the engine block, cam shafts and the main crank. New parts were obtained quickly from the Caterpillar dealer in Denmark and arrived on site last week. The rebuilt engine will be tested tomorrow, before being signed off by the engineers.

Nick Hall, CEO of Angel Mining, commented: "The Company had hoped that it would be able to meet its financial commitments through sales of gold, however, the unforeseen halt in production meant the Company thought it prudent to secure a one-off cash injection from the financial markets.

Although the failure of the generator on 5 March was a blow, as it has prevented the plant from milling and processing ore, I am delighted with the support we have witnessed from existing shareholders and other financial institutions in the UK. With commercial levels of gold production anticipated to commence later this week, we can look to the recommencement of cash generation. Moreover, given upgrades to the plant over the last month we expect to see a much improved level of gold production and sales in the coming months."

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/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 Q1 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 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.

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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