Falklands : Falkland Gold And Minerals Ltd. Raises £8Million and Launches Offer
Submitted by Falkland Islands News Network (Juanita Brock) 25.11.2004 (Article Archived on 09.12.2004)
Falkland Gold and Minerals Limited ("FGML"), an exploration company with exclusive rights to explore for gold and minerals in the Falkland Islands, announces that it has conditionally placed 20,000,000 shares at an issue price of 40 pence per share raising £8 million (before expenses).
Falkland Gold and Minerals Limited raises £8m and launches Offer for Subscription
Falkland Gold and Minerals Limited ("FGML"), an exploration company with exclusive rights to explore for gold and minerals in the Falkland Islands, announces that it has conditionally placed 20,000,000 shares at an issue price of 40 pence per share raising £8 million (before expenses).
FGML also announces a public offer for subscription of up to a further 5,000,000 shares available at 40 pence per share, which if fully subscribed, will raise an additional £2 million (before expenses). The minimum number of shares for which an application can be made under the Offer is 2,500 shares.
Assuming full subscription under the offer, FGML will have a market capitalisation of £31.3 million on admission to AIM and the net proceeds of the placing and public offer will be approximately £8.8 million. The money raised will be used to undertake further stages of FGML's exploration programme.
Dealings in the shares are expected to commence on AIM on 9th December 2004.
The prospectus containing information regarding the public offer is available for eligible investors to order from FGML's website www.fgml.co.uk and from the offices of W.H. Ireland Limited, Cannongate House, 62-64 Cannon Street, London, EC4N 6AE. The offer is open until 3:00pm on the 7 December 2004. Completed application forms and payments are required to reach Capita IRG Plc by this time.
KEY POINTS
§ FGML has exclusive exploration rights to substantially all of the onshore land mass of the Falkland Islands above the mean average high tide level, covering approximately 12,000 km². The licence, currently valid to January 2007, will be extended by the Falkland Islands Government to July 2009 on admission to AIM.
§ As part of Stage I of the exploration programme, a significant amount of exploration has been conducted including an aeromagnetic survey of the Falkland Islands identifying a number of magnetic anomalies. The exploration has established the presence of alluvial gold in several drainage systems as well as the presence of kimberlitic indicator minerals and titanium rich gravel, together with a number of anomalies. 23 targets have been identified for investigative drilling.
§ In Stage II, the Directors believe that the focus of the investigative drilling programme will be nine of the targets which were identified during Stage I of the exploration work. Further work planned on such targets will involve at least 12,000 metres of investigative drilling and the subsequent analysis of the resultant samples.
§ Stage III of the exploration programme will involve drilling a further 14 of the targets that have already been identified during Stage I, including at least 12,000 metres of investigative drilling and subsequent analysis.
§ The current major shareholders of Falkland Gold and Minerals Limited are: RAB Special Situations LP, Falkland Islands Holdings plc, Falkland Islands Mineral Development Limited, a wholly owned subsidiary of Global Petroleum Limited, and South Atlantic Resources Limited, a wholly owned subsidiary of Cambridge Mineral Resources plc.
Commenting on the placing and public offer, Richard Linnell, executive Chairman of FGML said:
"There has been a very positive reaction from the institutions and we hope private investors will take part in this exciting opportunity in the Falkland Islands".
Enquiries:
Grandfield
Charles Cook/Matthew Jervois 020 7417 4170
BACKGROUND INFORMATION
BOARD OF DIRECTORS
Richard Linnell, executive Chairman, aged 60
Richard has been active in the resources sector for over thirty years and has significant global experience in the development and marketing of resources and commodities. In his early career he was involved in the establishment of the Delta Manganese Project (now Manganese Metal Company) and the Murray and Roberts Industrial Corporation, the industrial holding company of the Murray and Roberts Construction Group. Richard's other positions have included marketing manager for the Stainless Steel division of Middelburg Steel & Alloys and general manager of the Manganese Division of Samancor, a joint venture between Billiton Plc and the Anglo American Corporation. In 1997 Richard became responsible for Billiton Plc's exploration and development activities throughout Africa. Whilst at Billiton Plc, Richard was an originator of the Bakubung Initiative, a forum designed to revive the South African mining industry and which led to the establishment of the New Africa Mining Fund. Richard was previously a director of BHP Billiton (SA) Ltd and a member of the Eskom Council. Richard is currently a non-executive chairman of Golden Valley Mines and GMA Resources Plc and a director of GRD Minproc Ltd, the Businessmap Foundation, Namakwa Diamonds Ltd, South African Mineral Resources Corporation Limited and Nimag Pty Limited.
Mark Fresson, executive Finance Director, aged 40
Mark is a chartered accountant, having qualified with Touche Ross in 1989. Mark then spent ten years in a variety of tax-related roles, within companies such as Allied Domecq plc and the Virgin group of companies. In early 2000, Mark moved to Nomura International plc to join the principal finance group as their head of tax and accounting. He formed part of the team that left Nomura to establish the Terra Firma Capital Partners private equity operation in 2002 where he ultimately held the position of senior tax and structuring counsel. Over the past five years, Mark has been a director of several privately-owned companies.
David Hudd, non-executive deputy Chairman, aged 59
David Hudd, a chartered accountant, was a partner in Price Waterhouse until 1982. Since then he has been chairman or chief executive of a number of listed companies, including, from 1992 to April 1998, Vardon plc, now Cannons Group PLC, a company he founded. He is currently executive chairman of Falkland Islands Holdings plc which he joined in March 2002 and which is a major shareholder in the Company. He is also non-executive chairman of API Group plc and a non-executive director of Paramount plc, QA plc and deputy chairman of Falkland Oil and Gas Limited.
Peter Bojtos, non-executive Director, aged 55
Peter is a professional engineer with over 32 years of experience in the mining industry. Following his graduation from the University of Leicester, England he worked at mines in West Africa, the United States and Canada. Peter then worked for 12 years in Toronto for Kerr Addison Mines Limited, part of the Noranda Group, in senior management positions. From 1992 to 1993, Peter was the President and Chief Executive Officer of Consolidated Nevada Goldfields Corporation, which operated precious metal mines in the United States. From 1993 to 1995, he was Chairman and Chief Executive Officer of Greenstone Resources Limited, a company that constructed gold mines in Central America. Since 1996, Peter has been a director of several mining and exploration companies, including Birim Goldfields Inc, Desert Sun Mining Corp, Queenstake Resources Ltd, US Gold Corp, Vaaldiam Resources Ltd and William Resources Inc.
Dr Robert Weinberg, non-executive Director, aged 57
Rob gained his doctorate in geology from Oxford University in 1973. Until recently he was managing director, institutional investment at the World Gold Council, and a director of Gold Bullion Securities. Rob has more than 30 years of international mining industry experience having worked as a director of the investment banking division of Deutsche Bank in London and before that as head of the global mining research team at SG Warburg Securities. He has also held senior positions within Societe General and James Capel & Co, where he rose to become head of the international mining department. Rob was formerly marketing manager of the gold and uranium division of Anglo American Corporation of South Africa Ltd.
Operations Manager
Derek Reeves, Operations Manager, aged 40
Derek has worked on the exploration of the Licence Area since 1999 including a 2-year period during which he resided in the Falkland Islands. Derek will be based in the Falkland Islands and his responsibilities are to supervise and manage the Company's exploration programme following Admission. Derek has had a 21-year career in the mining and exploration business, including positions as senior geologist with Argyle Diamond Mines, a director of Falkland Island Mineral Development, technical director of Dampier Oil, underground geologist of North Kalgurli Mines and business development manager with Global Petroleum. In addition he has acted as a consultant to a number of diamond and gold exploration companies, managing their exploration programmes.
This document has been approved by W.H. Ireland Limited ("WH Ireland") for the purposes of section 21 of the Financial Services and Markets Act 2000. FGML has appointed WH Ireland, whose registered office is at 11, St James's Square, Manchester, M2 6WH to act as its nominated adviser and broker for the purposes of the London Stock Exchange's AIM Rules in connection with FGML's proposed admission to AIM and the placing and public offer. WH Ireland is acting exclusively for FGML in relation to FGML's proposed admission to AIM and no one else and will not be responsible to anyone, other than FGML, for providing the protections afforded to customers of WH Ireland or for advising any other person on FGML's proposed admission to AIM and the placing and public offer, on any acquisition of shares in FGML or on any other matter referred to in this document.
Prospective investors are advised that an investment may only be made by eligible investors and in reliance on the Prospectus which should be read in its entirety. Attention is drawn to the risk factors and securities laws restrictions set out in that document.
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