Kenmare Resources - Issue of Equity

RNS Number:5142M
Kenmare Resources PLC
19 June 2000

Kenmare Resources plc ("Kenmare" or "the Company")

Placing of Shares to raise approximately Stg#3.3 million


Kenmare is pleased to announce that the Company has entered into arrangements
to place 29,433,333 new Ordinary Shares in the capital of the Company at
Stg11.25p per share (the "Placing").

The Placing comprises two separate tranches. The first tranche of 14,000,000
new Ordinary Shares is within the existing routine authority granted to the
Directors by Shareholders at the Annual General Meeting held on 3 May, 2000
and has now been completed. The second tranche being the issue of 15,433,333
new Ordinary Shares is expected to be completed in July, 2000 subject to the
passing of the relevant resolutions at an Extraordinary General Meeting of the
Company (the "EGM"), notice of which will be sent to Shareholders in due
course.

The Placing will raise approximately Stg#3.1 million net of placing expenses.
The net proceeds of the Placing are to be used to help fund the completion by
the end of 2000 of the Definitive Feasibility Study on the Kenmare's Moma
Titanium Mineral Sands Project in Mozambique, to help fund payments in respect
of the Wet Concentrator Plant which was acquired in January of this year, and
to help fund payments which will fall due in respect of the recently announced
acquisition of the Minerals Separation Plant (once the approval for the
purchase has been obtained from Kenmare Shareholders at the EGM)

Mr. Charles Carvill and Mr. Ian Egan, both directors of the Company, are
participating in the first tranche of the Placing in the amounts of 222,222
shares and 100,000 shares respectively. 

Charles Carvill, Kenmare's Chairman said: "The funds raised will be used to
complete all necessary Feasibility Study work on the Mona Titanium Mineral
Sands Project.  They will also be used for the ongoing purchase of the Beenup
Wet Concentrator Plant and, subject to Shareholder approval, the recently
contracted Beenup Minerals Separation Plant.  Once the proposed acquisition of
the Minerals Separation Plant has been approved, Kenmare will have acquired
two of the three essential components of the Moma Titantium Mineral Sands
Project at a fraction of their development cost and is well funded to take the
project forward". 

He also stated : "Dismantling, and transport to the port Bunbury of the Wet
Concentrator Plant is well underway with completion due in October, 2000".


For more information:

Michael Carvill
Managing Director
[phone] or [phone]

END

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