Financing Update and Issue of Equity (7781S)
November 25 2011 - 3:22AM
UK Regulatory
TIDMANGM
RNS Number : 7781S
Angel Mining PLC
25 November 2011
ANGEL MINING PLC
("Angel Mining" or the "Company")
AIM: ANGM
Financing Update and Issue of Equity
The Board of Angel Mining is pleased to announce that it has
revised and extended its financing agreement with YA Global Master
SPV Ltd ("YAGM"), advised by Yorkville Advisors UK LLP
("Yorkville").
On 28 July 2011, the Company announced that it had entered into
a promissory note with YAGM up to a maximum value of $3,654,000.
The initial drawdown under the note was $1,350,000 and the Company
made a subsequent drawdown of $855,000. Following an initial
repayment, the outstanding balance of $1,855,000 was due to be
repaid by 15 January 2012.
The Company has reached an agreement with YAGM whereby the
Company will make an immediate repayment of $536,013 through the
issue of 25,000,000 new ordinary shares of 1p each ("Ordinary
Shares") shares at a price of 1.37p. This price represents a
premium of 5.4% to the closing price of the Company's shares on 24
November 2011. This payment is comprised of $524,616 of principal
and accrued interest of $11,397. Application has been made for the
new Ordinary Shares to be admitted to trading on AIM and admission
is expected to take place on Wednesday 30 November 2011.
In exchange for the share issue YAGM has agreed to extend the
repayment schedule for the promissory note. Under the new schedule,
the Company will make a series of payments commencing in March 2012
through to September 2012. Interest on the loan continues to accrue
at 4% per annum.
The revised payment schedule agreed with YAGM is contingent on
the Company also extending the repayment of its outstanding loan
from Cyrus Capital Partners LP and affiliates thereof ("Cyrus") to
a date falling on or after 31 December 2012. Whilst the Company has
not yet concluded such an agreement with Cyrus, it is nonetheless
confident that such an agreement will be reached on or before 11
December 2011. If such an agreement is not reached, the revised
repayment schedule will be cancelled and all amounts outstanding to
YAGM will fall due on 11 December 2011.
Nick Hall, CEO of Angel Mining, commented: "We are very pleased
to have reached this agreement with Yorkville and YAGM. They have
been supporting Angel Mining since 2009 through a variety of
innovative and flexible financing facilities. By extending our
repayment schedule, they have given us greater flexibility over the
coming months to continue bringing Nalunaq up to target production
and developing our plans for Black Angel."
Enquiries:
Angel Mining plc
Nicholas Hall, Chief Executive Officer 07931 709 053
Kevin McNair, Chief Financial Officer 07900 690 908
Fox-Davies Capital (Nominated adviser
& Broker)
Simon Leathers 0203 463 5010
Bishopsgate Communications Limited
Nick Rome/Shabnam Bashir 0207 562 3350
Background to Angel Mining
Nalunaq
The Company first poured gold at Nalunaq on 27 May 2011
following final completion of the processing plant and is targeting
optimal production by Q4 2011 of approximately 24,000 oz per annum
thereby providing the Company with cash flow which will be
dedicated to funding development at Black Angel, further
exploration at Nalunaq and reducing debt. The current mining plan
anticipates a mine life of two to five years, subject to further
exploration work. The directors anticipate that Nalunaq may enter
into toll treatment arrangements with other potential gold mining
activities in the region where appropriate. Angel Mining operates
the only operational gold mine in the region and anticipates that
its operation may be suitable for processing ore from other gold
mining companies in the region.
Black Angel
The Black Angel project is a high grade zinc/lead project based
around a previously developed mine in the north of Greenland. The
table below sets out the JORC Code compliant mineral resources
estimate for the Black Angel project which includes three sets of
zones within the mine and three satellite deposits which have been
explored.
Summary of Black Angel Mineral Resources (JORC) as of 31 December 2007
--------------------------------------------------------------------------------------
Tonnage (kt) Zinc Lead Silver (g/t) Mineable
Category (%) (%) reserves
(kt)
------------- ----------- -------------- ------ ------ -------------- ----------
Angel Zone Indicated 791 13.0 4.5 25.0 218
------------- ----------- -------------- ------ ------ -------------- ----------
Cover Zone Indicated 522 8.3 2.4 18.0 231
------------- ----------- -------------- ------ ------ -------------- ----------
Other zones
within the
Black Angel
mine Indicated 697 10.4 3.3 13.0 -
------------- ----------- -------------- ------ ------ -------------- ----------
South Lakes
Glacier Indicated 1,726 6.9 2.5 14.5 -
------------- ----------- -------------- ------ ------ -------------- ----------
Ark Inferred 492 4.7 2.2 20.4 -
------------- ----------- -------------- ------ ------ -------------- ----------
Nunngarut 2 Indicated 196 9.0 3.4 31.0 -
------------- ----------- -------------- ------ ------ -------------- ----------
Nunngarut 2 Inferred 1 4.5 1.9 9.0 -
------------- ----------- -------------- ------ ------ -------------- ----------
Total 4,425 449
-------------------------- -------------- ------ ------ -------------- ----------
Source: Wardell Armstrong International Ltd.
--------------------------------------------------------------------------------------
The project consists of three phases:
Phase I: Complete the rehabilitation of infrastructure to allow
access to the mine, the mine camp and related facilities.
Phase II: Complete the detailed review of the pillar extraction
programme within the Angel and Cover Zones, including the
construction of the process plant and related systems to allow for
the shipment of concentrate from the site.
Phase III: Develop a further exploration programme for the
existing JORC resources at the Ark and Glacier deposits as well as
identified mineralization at Deep Ice, Nunngarut and a number of
other exploration targets within the license area (see the
announcements made by the Company on 6 June 2006 titled "Black
Angel 2006 Resource Statement" and on 30 November 2007 titled
"Black Angel 2007 Resource Statement").
Dr Bob Dowdell is the qualified person that has reviewed and
approved the technical information contained in this announcement.
Dr Dowdell holds a BSc and Doctorate in Mining Engineering from
Newcastle University and is a Chartered Engineer and Member of the
Institution of Mining and Metallurgy. Dr Dowdell is a Competent
Person for the purposes of the AIM Guidance Note on Mining, Oil and
Gas Companies dated June 2009.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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