Private Placement (0201P)

TIDMEML

RNS Number : 0201P

Emerging Metals Limited

27 September 2011

For Immediate Release: 27 September 2011

Emerging Metals Limited

("EML" or the "Company")

Private Placement

Dealings by Directors

Further to the announcement made on 15 September 2011, EML is pleased to announce that the Company has completed, subject only to Admission, a private placement to parties (including certain EML directors) raising gross proceeds of GBP2,000,000 through the issue of 100,000,000 new ordinary shares at a price of 2p per share (the "Placing").

The majority of the proceeds will be advanced to the Company's 37.23 per cent associated company Ferrum Resources Limited to fund its on-going exploration programme in Sierra Leone. By loan agreement dated 27 September 2011 the Company has advanced GBP1,000,000 to Ferrum. The loan is secured against assets of Ferrum and is (unless agreed otherwise in writing by the parties) repayable together with interest (charged at a rate of 10 per cent. per annum) on 23 March 2012.

Certain EML directors have participated in the Placing as set out in the table below:-

 
                                                           Percentage of 
                     Number of new   Resultant holding     enlarged share 
 Name                 shares          of Ordinary Shares   capital 
 
 Stephen Dattels*    17,000,000      38,820,313            8.44% 
 James Mellon**      20,000,000      51,333,493            11.15% 
 

* - These shares are held by Regent Mercantile Holdings Limited, a company itself owned by trustees of a trust under which Stephen Dattels and members of his family may become beneficiaries and are registered in the name of Goldman Sachs Securities (Nominees) Limited.

** - The new shares are being subscribed by Galloway Limited ("Galloway"), bringing its total holding to 47,915,141 shares, representing 10.41% of EML's enlarged issued share capital. Galloway, whose directors include Denham Eke, is indirectly wholly owned by the trustee of a settlement under which James Mellon has a life interest. The balance of James Mellon's shareholding is held in his own name.

EML's independent directors (excluding for these purposes Messrs. Eke, Dattels and Mellon), consider the terms of the Placing to be fair and reasonable insofar as EML's shareholders are concerned, having consulted with the Company's nominated adviser.

Following the Placing, the Company is aware of the following persons who hold, directly or indirectly, voting rights representing 3% or more of the enlarged issued share capital of the Company to which voting rights are attached:

 
                                 Number of Ordinary   Percentage of enlarged 
 Name                             Shares               share capital 
 Vidacos Nominees Limited        129,820,500          28.21% 
 James Mellon**                  51,333,493           11.15% 
 Stephen Dattels*                38,820,313           8.44% 
 Mr Ronald Bruce Rowan           25,000,000           5.43% 
 Middlemarch Partners Limited    22,000,000           4.78% 
 

Application will be made for the new ordinary shares, which rank pari passu in all respects with the Company's existing ordinary shares, to be admitted to trading on AIM which is expected to occur no later than Monday 3 October 2011. Following the issue, the Company's total issued ordinary share capital will be 460,187,559 Ordinary Shares.

For further information:

 
 Emerging Metals     Religare Capital    Evolution           GTH 
  Limited             Markets Limited    Securities          Communications 
                                         Limited 
 Denham Eke          Peter               Romil Patel         Toby Hall 
                     Trevelyan-Clark      Tim Redfern         Christian Pickel 
                     Emily Staples 
 +44 (0) 1624        [phone]     [phone]      [phone] 
 639396               0800                4300                3902 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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