RESULTS OF PLACING (1143W)

TIDMLOND

RNS Number : 1143W

London Mining Plc

24 January 2012

THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL

Neither this Announcement nor any part of it constitutes an offer to sell or issue or the solicitation of an offer to buy, subscribe or acquire any new ordinary shares in any jurisdiction in which any such offer or solicitation would be unlawful and the information contained herein is not for publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Japan, South Africa or any jurisdiction in which such publication or distribution would be unlawful. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933 (as amended), under the securities legislation of any state of the United States or under the applicable securities laws of Australia, Canada, Japan or South Africa.

LONDON MINING PLC (incorporated and registered under the laws of England and Wales with registered number 05424040) ("London Mining" or the "Company")

24 January 2012

RESULTS OF PLACING

Further to the announcement earlier today, London Mining is pleased to announce that 22,685,000 new ordinary shares ("Ordinary Shares") in the Company (the "Placing Shares") have been successfully placed by J.P. Morgan Securities Ltd. (which conducts its UK investment banking activities as J.P. Morgan Cazenove) ("J.P. Morgan Cazenove"), and Liberum Capital Limited ("Liberum Capital") to institutional and other investors.

The placing price has been set at 255 pence per share. The placing price is equivalent to a 4.5% discount to the closing mid-market price on the AIM market of the London Stock Exchange ("AIM") on 23 January 2012. Accordingly, the placing will raise gross proceeds of approximately GBP57.8 million (approximately US$90.1 million). The Placing Shares represent approximately 19.9% of London Mining's issued share capital prior to the Placing.

11,199,214 Placing Shares have been placed firm and are to be issued by the Company further to the directors' authority to allot Ordinary Shares for cash on a non-pre-emptive basis (the "Firm Placing Shares"). An additional 11,485,786 Placing Shares ("Conditional Placing Shares") have been placed with investors conditional on shareholder approval at a general meeting of the Company to be convened on or around 13 February 2012 (the "GM").

The Company will be applying for admission of the Firm Placing Shares to trading on AIM ("First Admission"). It is expected that admission to trading or quotation and listing of the Firm Placing Shares on AIM will take place on or around 27 January 2012.

The Company will also apply for admission of the Conditional Placing Shares, the issue of which is subject to shareholder approval, on AIM ("Second Admission"). It is expected that admission to trading or quotation and listing of the Conditional Placing Shares on AIM will take place on or around 14 February 2012.

The Placing Shares will, when issued, be credited as fully paid and will rank in full for all dividends and other distributions declared, made or paid after First Admission or Second Admission (as applicable) in respect of the Ordinary Shares then in issue and will otherwise rank on First Admission or Second Admission (as applicable) pari passu in all respects with the existing ordinary shares of London Mining.

Following notice of the meeting convening the GM, the timing of the admission and settlement of the Conditional Placing Shares will be confirmed.

The Firm Placing is conditional, among other things, upon First Admission becoming effective. The Conditional Placing is conditional, among other things, upon shareholder approval and First Admission and Second Admission becoming effective. The Firm Placing is not conditional on the Conditional Placing.

Graeme Hossie, Chief Executive Officer of London Mining, commented: "Today's equity raise allows us to focus on near term delivery of production at Marampa, Phase 1 growth plans to 5Mtpa by 2014 and completion of our BFS for a further expansion to 9Mtpa".

Adjustment to the USD110million 8% Guaranteed Convertible Bonds due 2016 (the "Bonds")

In accordance with the Terms and Conditions of the Bonds, an adjustment is required to be made to the Exchange Price (as defined in the Terms and Conditions) as a consequence of the Placing Price being set at a price which is less than 95% of the Current Market Price (being the average of the daily Volume Weighted Price of an Ordinary Share on each of the five consecutive dealing days immediately preceding the launch of the Placing). The Exchange Price is currently GBP4.8430. With effect from Second Admission, the Exchange Price will be adjusted to GBP4.7541.

Contacts

For more information, please contact:

 
 London Mining Plc 
  Graeme Hossie, Chief Executive 
  Officer 
  Rachel Rhodes, Chief Financial 
  Officer 
  Thomas Credland, Head of Investor 
  Relations                                    +44 20 7408 7500 
 Liberum Capital (Nominated Advisor/Broker) 
  Clayton Bush/Christopher Kololian            +44 20 3100 2000 
 J.P. Morgan Cazenove (Broker) 
  Neil Passmore / Ignacio Borrell              +44 20 7742 4000 
 Brunswick Group LLP 
  Carole Cable / Daniel Thole                  +44 20 7404 5959

This Announcement is for information only and does not contain or constitute an offer of, or the solicitation of an offer to buy, securities in Australia, Canada, Japan, South Africa or the United States or any jurisdiction in which the same would be unlawful. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "US Securities Act"), under the securities legislation of any state of the United States or under the applicable securities laws of Australia, Canada, Japan or South Africa. The securities referred to herein may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada, Japan or South Africa or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada, Japan or South Africa. Any failure to comply with these restrictions may constitute a violation of U.S., Australian, Canadian, Japanese or South African securities laws, as applicable. No public offer of London Mining's securities is being or will be made in the United Kingdom, the United States, Australia, Canada, Japan, South Africa or elsewhere. No action has been taken by London Mining or the Banks that would permit an offering of the securities referred to herein or possession or distribution of this Announcement or any other offering or publicity material relating to such securities in any jurisdiction where action for that purpose is required. Persons into whose possession this Announcement comes are required by London Mining and the Banks to inform themselves about, and to observe, any such restrictions.

This Announcement has been issued by and is the sole responsibility of London Mining. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by the Banks or by any of their respective affiliates or agents as to or in relation to the accuracy or completeness of this Announcement, or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is hereby expressly disclaimed.

J.P. Morgan Cazenove, which is authorised and regulated by the Financial Services Authority ("FSA"), and Liberum Capital which is authorised and regulated by the FSA are acting for London Mining in connection with the Placing and no one else and will not be responsible to anyone other than London Mining for providing the protections afforded to clients of J.P. Morgan Cazenove and Liberum Capital, respectively, or for providing advice in relation to the Placing.

This Announcement is not for publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Canada, Australia, Japan, South Africa or any jurisdiction in which the same would be unlawful.

Certain statements in this Announcement are forward-looking statements which are based on London Mining's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, London Mining undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in this Announcement is subject to change without notice and neither London Mining nor the Banks assume any responsibility or obligation to update publicly or review any of the forward-looking statements contained herein.

Any indication in this Announcement of the price at which Ordinary Shares have been placed cannot be relied upon as a guide to future performance.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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