Norseman Gold PLC Trading Halt on ASX and Proposed Placing (9170H)

TIDMNGL

RNS Number : 9170H

Norseman Gold PLC

18 July 2012

Norseman Gold

Trading Halt on ASX

Proposed Placing

Norseman Gold Plc ("Norseman" or "Company") has today requested the halt of trading of its shares on ASX until an announcement is made to the market with respect to the completion of a capital raising. The Company is undertaking a private placing of approximately A$20 million, including the conversion of A$8m of existing debt into equity, through the issue of approximately 500 million fully-paid ordinary shares to institutional investors ("the Placing"). The Placing is being managed by Moelis Australia Advisory Pty Ltd and Ocean Equities Limited acting as Joint Bookrunners and Joint Lead Managers.

The Company's major shareholder, Tulla Group, has agreed to underwrite the total issue for cash of A$12m and conversion of existing debt of A$8m.

The funds raised from the Placing will be used to fund the company's working capital requirements including the reduction of existing creditors.

The Placing, to be processed in two tranches, is expected to be completed on Thursday 19 July 2012. The first tranche of approximately A$3m, involving approximately 74 million new shares, is not conditional upon shareholder approval, with new shares expected to commence trading on 26 July 2012. The second tranche of approximately A$17 million, involving approximately 426 million new shares, will require receipt of shareholder approval at a general meeting to be held on or around 23 August 2012.

A corporate presentation in relation to the Placing is available at:

http://www.asx.com.au/asxpdf/20120718/pdf/427gdj040gnqjc.pdf

For further information visit www.norsemangoldplc.com, email [e-mail] or contact:

David Steinepreis, Norseman Gold Plc. Tel: [phone]

   William Vandyk / Rod Venables, Northland Capital Partners Ltd Tel:        [phone] 

Guy Wilkes, Ocean Equities Ltd Tel: 020 7786 4370

   Susie Geliher / Hugo de Salis, St Brides Media & Finance Ltd Tel:               020 7236 1177 

This information is provided by RNS

The company news service from the London Stock Exchange

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