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RNS Number : 3104C
African Mining & Exploration PLC
03 March 2011
 



African Mining & Exploration plc ('AME' or the 'Company')

 

SETTLEMENT AND ISSUE OF EQUITY

In its AIM admission document dated 22 October 2010, AME disclosed that although it has no plans to mine alluvial gold on the Karan permit area the Company was in early stage discussions with various parties regarding a potential joint venture pursuant to which the Company would receive a royalty for any alluvial gold produced.

AME announces that these early stage discussions, which were entered into with North Atlantic Mining Associates Limited ("NAMA") and Peri Ventures Limited ("Peri"), have terminated as the Company focuses all its efforts on its sub-surface exploration and drilling programme (which remains the Company's primary focus).

In consideration of the preliminary scoping and feasibility work that was undertaken by NAMA and Peri in respect of the potential joint venture, AME has entered into a settlement arrangement with NAMA and Peri pursuant to which AME has agreed to issue and allot such number of fully paid ordinary shares of 1p each in the capital of AME ("Ordinary Shares") as equates to £80,000 based on the 30 day volume-weighted average price of AME's ordinary shares to NAMA ("Consideration Shares").  NAMA and Peri have also undertaken to deliver all existing documentation, contracts, agreements and other information in respect of alluvial mining on the Karan license within their possession or control to AME.

AME has therefore issued 502,726 new Ordinary Shares to NAMA, being the Consideration Shares, under this settlement arrangement.  Application has been made for these 502,726 new Ordinary Shares to be admitted to trading on the AIM market of the London Stock Exchange plc ("Admission").  It is expected that Admission will become effective on or around 10 March 2011.

Following Admission, the Company will have 83,707,733 Ordinary Shares in issue.  The New Ordinary Shares will represent approximately 0.6 per cent. of the issued share capital of the Company immediately following Admission.

Enquiries:                                                                                           

African Mining & Exploration plc

44 (0)207 499 4059

Mark Jones (Chief Executive Officer)

 


 

Singer Capital Markets Limited (Nomad and Broker)

44 (0)20 3205 7500

James Maxwell / Jenny Wyllie

 


 

Farm Street Communications

44 (0)7593340107

Simon Robinson

44 (0)2031764249

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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