KMR Kenmare Resources Plc

RNS Number:1096C
Kenmare Resources PLC
7 December 1999

              KENMARE RESOURCES PLC ("KENMARE" OR "THE COMPANY")              
                                                                                
                                                                           
  SHARE PLACING, APPOINTMENT OF NEW DIRECTORS AND NEW STOCKBROKER IN LONDON   


Kenmare is pleased to announce that the Company has entered into arrangements
to place 11,483,800 new Ordinary Shares at Stg7.5p per share in the capital of
the Company. Of the total, the placing of 10,283,800 new Ordinary Shares has
been arranged by Hamilton Capital Partners Limited ("Hamilton"), and the
balance of 1,200,000 new Ordinary Shares is being placed with Mr. Charles
Carvill, Chairman of Kenmare as part repayment, in the amount of Stg#90,000,
of a loan made to the Company by Mr. Carvill. The Placing arrangements involve
the grant of warrants over 11,483,800 new Ordinary Shares of which 10,283,800
Warrants are to be granted to Hamilton and certain of its associates and the
balance of 1,200,000 to Mr. Carvill.

The Placing comprises two separate tranches. The first tranche of 5,741,900
new Ordinary Shares and the grant of 5,741,900 Warrants is within the existing
routine authority granted to the Directors by Shareholders at the Annual
General Meeting held on 23 July, 1999 and has now been completed. The second
tranche being the issue of the New Ordinary Shares and the grant of the
Proposed Warrants is to be completed during January, 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#710,000 net of placing expenses and
the loan repayment to Mr. Carvill. The net proceeds of the Placing are to be
used to fund the completion of a pre-feasibility study over the mineral sands
deposits in the Moma region of Mozambique. Kenmare's Moma deposit is
considered by industry experts to be amongst the top five undeveloped mineral
sands resources in the world both in terms of orebody size and contained
ilmenite. Proceeds from the Placing will also be used for drilling of the new
Pilivili zone of the Moma orebody and for ongoing operations.

A great deal of work on the Titanium project is now being drawn together in
the pre-feasibility study, which is being undertaken by Minproc Limited
("Minproc"). Minproc is an Australian based engineering group, which designed
and built the TiWest titanium mine and synthetic rutile plant in Australia,
and has been given the task of completing a pre-feasibility study on the Moma
deposit by January 2000. This will be followed by a full feasibility study, to
be completed during the year 2000. A drilling programme is presently underway
using a high rate reverse circulation rig and is proceeding at about 400
meters per day.

In addition, the Kenmare board is pleased to announce that Mr. Kenneth Judge
and Mr. Simon Farrell are to be proposed as non-executive directors of Kenmare
at the EGM ("the Proposed Directors"). The Directors believe that the
appointments of Mr. Judge and Mr. Farrell, both of whom have extensive
experience in the mineral exploration and mining industry, will benefit the
Company considerably.

Mr. Judge is a qualified Barrister and Solicitor and worked in private
practice before joining the Bond Corporation to work on international mergers
and acquisitions. He is a director of Hamilton. Mr. Judge has held a number of
public company directorships and is a director of Philippine Gold plc, a
company the shares of which are traded on the Alternative Investment Market of
the London Stock Exchange. 

Mr. Farrell has over 20 years experience in the mining industry at senior
management and board level, principally in the areas of finance, marketing and
general management. He has previously worked for a number of large mining
groups, including RTZ, and as Chief Executive Officer with a junior mining
company.  He is a qualified accountant, holds a Bachelor of Commerce Degree
and an MBA from Wharton School at the University of Pennsylvania. He currently
works independently as a consultant, principally for Minproc. Shareholder
approval is being sought at the forthcoming EGM for the election of the
Proposed Directors. 

Kenmare has also appointed T. Hoare Canaccord as its London Stockbrokers. T.
Hoare Canaccord is a subsidiary of Canaccord, Canada's fourth largest
stockbroker and specialises both in companies with African exposure and
resource groups.

Charles Carvill, Chairman of Kenmare, made the following comments: "I am
delighted that Ken Judge and Simon Farrell have agreed to accept the
nominations to the Kenmare Board as I believe they both will contribute
enormously to Kenmare. We now have the chance to capitalise on the value that
BHP added to the Titanium project and including T. Hoare Canaccord have a team
with the experience and capability to make it happen."


For more information:

Michael Carvill
Managing Director 
+353 (0)1-671 0411 or +353 (0)87 674 0110

END

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