London Mining Plc FINANCING UPDATE (7117T)

TIDMLOND

RNS Number : 7117T

London Mining Plc

08 October 2014

London Mining Plc

Quoted on London AIM (LOND)

("London Mining" or the "Company")

8 October 2014

FINANCING UPDATE

Further to the announcement made on 29 September 2014, detailed discussions are ongoing with potential strategic investors, London Mining Plc (the "Company") and the Company's bank lender group. Under the structures currently proposed, the Board believes that there will be little or no value remaining in the equity of the Company and the other listed securities of the Group. While the lenders of the Company remain supportive of the process, they are not expected to provide any further short term funding which would be provided by a strategic investor if the discussions are successful. There can be no certainty at this time on the likelihood or timing of such an investment.

With the iron ore price at its lowest level since 2009, the Marampa operations have been put under considerable financial strain. In addition, the outbreak of Ebola in Sierra Leone has introduced significant challenges both to the strategic investor process that the Company began in May, and to the ongoing operational performance of the business, where our team in Sierra Leone continue to show exemplary commitment in such adverse circumstances. The capital that is needed from such an investor is significant and the proposals currently contemplate funding of the life of mine expansion and a cash injection into Marampa to allow the mine to continue operating.

For more information please contact:

 
 London Mining Plc 
  Graeme Hossie, Chief Executive Officer 
  Benjamin Lee, Chief Financial Officer 
  Thomas Credland, Head of Investor Relations    [phone] 
 
   Liberum Capital (Nominated Adviser/Broker) 
   Richard Crawley / Tom Fyson                     [phone] 
 J.P. Morgan Cazenove (Broker) 
  Ben Davies / Ignacio Borrell                   [phone] 
 Buchanan 
  Bobby Morse / Louise Mason                     [phone] 
 

About London Mining

London Mining is an expanding producer of high specification iron ore concentrate for the global steel industry and is focused on identifying, developing and operating sustainable mines. The Company is on track to produce c.5Mwmt in 2014, from its 100% owned Marampa Mine in Sierra Leone, increasing to 6.5Mwmt/a following the next phase of expansion. Marampa has resources of c.1Bnt to support a mine life of over 40 years and a staged expansion to 20Mwmt/a of iron ore production. London Mining has also completed bankable feasibility studies outlining plans for the development of its projects in Greenland and Saudi Arabia, with an aggregate JORC attributable resource of 1,203Mt. The Company listed on AIM on 6 November 2009 and trades under the symbol LOND. More information about London Mining can be found at www.londonmining.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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