Placing and investment (5969W)

TIDMHRE

RNS Number : 5969W

Hameldon Resources Limited

22 November 2010

22 November 2010

HAMELDON RESOURCES LIMITED (AIM: HRE)

CONDITIONAL PLACING

AND

INVESTMENT IN ASCOT MINING PLC

Hameldon Resources Limited ("HRE or the "Company") is pleased to announce the transactions below.

Conditional Placing of 111.7 million new shares ("Placing")

The Company has conditionally placed 111,666,664 new ordinary shares of 0.25p each ("Placing Shares") with new and existing investors at a price of 0.60p per share to raise GBP670,000 before expenses. Completion of the Placing is subject to the following outstanding conditions precedent: (i) passing of all resolutions ("Resolutions") set out in the Company's notice of Extraordinary General Meeting sent to shareholders on 2 November 2010; and (ii) admission of the new Placing Shares to trading on AIM. The proceeds of the Placing will be deposited into an escrow account pending satisfaction of the conditions precedent.

On Admission, The Placing Shares will rank pari passu with the existing ordinary shares of 0.25p each ("Ordinary Shares") in the Company.

Investment

The Company has entered into a transaction to invest GBP429,999 in Ascot Mining Plc ("Ascot") by way of a subscription for convertible loan notes issued with a 10% coupon, redeemable in 2015, and convertible at any time at HRE's discretion into new Ascot ordinary shares at 20p per share. In addition, HRE has been granted warrants to subscribe for 3,009 993 additional new Ascot ordinary shares at an exercise price of 20p per new Ascot ordinary share, valid for 5 years.

Ascot is quoted on the PLUS-quoted market, an exchange regulated market operated in London by PLUS Markets Plc, where it trades under the stock code ASMP, and is traded on XETRA and PLUS.

Ascot Mining has a focus on gold production in Costa Rica. The Company currently has a portfolio of four assets. The Company's flagship asset is the Chassoul Gold Mine located in Coasta Rica. Gold production is targeted to reach 1,200 ounces of Gold per month in Q1 2011.

The purpose of the investment was to enable Ascot to meet its payment obligations to the vendor of its Chassoul Gold Mine in Costa Rica.

In its year ended 30 September 2009, Ascot made an audited loss before taxation of GBP2.0 million and as at that date had net assets of GBP7.2 million.

Hameldon Resources Limited

Waseem Shiraz

[phone]

Tom Winnifrith

[phone]

Strand Hanson Limited

James Harris / Angela Peace

[phone]

Bishopsgate Communications

Nick Rome / Michael Kinirons

[phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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