London Mining Plc Financing Update (8231S)

TIDMLOND

RNS Number : 8231S

London Mining Plc

29 September 2014

For Immediate Release 29 September 2014

London Mining Plc

Quoted on London AIM (LOND)

("London Mining" or the "Company")

Financing Update

The Company is now in detailed negotiations with a potential strategic investor to make an investment in the Group with a deal structure under consideration. This currently contemplates funding of the life of mine expansion and a material cash injection into the Company which will give rise to a significant dilution to the existing equity and a revised capital structure. The proposed investment as currently structured is expected to require a number of weeks to implement, and there can be no certainty that such discussions will be successful.

At present the Company does not have sufficient liquidity to enable it to continue to trade through this period without raising further finance. Funds from Afreximbank are not expected to be available in the required time period with discussions on structure ongoing. The Company's lenders are working constructively with us to enable investment into the Group and in addition are currently considering the provision of further finance. While the lenders remain supportive of the process there can be no certainty at this time that such arrangements can be put in place to facilitate such an investment.

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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