African Mining and Exploration / Index: AIM / Epic: AME / Sector: Mining
1 March 2013
African Mining and Exploration Plc ('AME' or 'the Company')
Cash Conservation Initiatives and Share Options Granted
African Mining and Exploration plc, the AIM listed gold exploration company, is pleased to announce that following a corporate review, the Company is in process of implementing a number of cash conservation initiatives to maximise the Company's shareholder return and exploration activity as AME fast-tracks its flagship Kossanto Gold Project in South-West Mali towards defining a maiden resource in 2013.
Whilst the Company has a healthy cash position of £1.76 million as at 31 December 2012, the Board recognises the current financing difficulties amongst the junior exploration sector and as a result has taken the pro-active decision to implement prudent cash preservation measures expected to total over £350,000 in the 2013 calendar year. Where additional cost-saving opportunities are recognised they will be implemented as part of an on-going cost management process as the Company continually reviews its cost base.
The cash preservation measures include reductions of up to 20% in the cash remuneration paid to the executive management team, including the CEO, Mark Jones. This reduction in cash remuneration combined with the Board changes announced on 6 February 2013, will total approximately £165,000 cash saving between now and the end of 2013.
In substitution for the cash remuneration forgone by AME's CEO and senior employees, the Company has granted 4,990,000 share options ('2013 Share Options') with an exercise price of 4.62p which is at a premium of 0.5p above the Company's mid-market share price at close of trading on 28 February 2013. The performance conditions attached to the 2013 Share Options are that one twelfth of the quantity granted will vest at the end of each month of completed service over the next 12 months. The 2013 Share Options have an exercise period of 5 years. 2,100,000 of the 2013 Share Options have been issued to Mark Jones, the CEO and a Director of the Company.
AME's CEO Mark Jones said, "We are entering a pivotal time in AME's development as we continue to fast-track our prospective Kossanto Gold Project towards defining a maiden resource in 2013. As a result, I am pleased to announce these cost-saving initiatives, which will help ensure our exploration programme remains on track by maximising 'money spent in the ground'. In turn, we remain committed to investing in and exploring additional quality exploration opportunities and utilising the strengths of experienced professionals and partners to deliver significant investment return with managed risk and look forward to reporting on our progress over the coming months."
For further information please visit www.ameplc.co.uk or contact:
African Mining & Exploration plc
Tel: 44 (0)20 7499 5881
James Maxwell / Jenny Wyllie
N 1 Singer
Tel: 44 (0)20 7496 3000
Felicity Edwards/ Charlotte Heap
St Brides Media & Finance Ltd
Tel: 44 (0)20 7236 1177
African Mining and Exploration plc (AIM: AME) is a West African focussed gold exploration company. AME currently has a number of prospective gold projects in Mali including its flagship 207 sq km Kossanto Gold Project located in the centre of the prospective Kenieba inlier in Western Mali. It is currently exploring and developing the Kossanto Gold Project with a view to delineating its maiden JORC compliant resource. The Company is also evaluating additional opportunities in West Africa to expand its portfolio and geographical focus.
This information is provided by RNS