Placing of 33.0m new ordinary shares
at 10p per share to raise £3.3m
06/03/2006
Press Release
The Board of Angus & Ross PLC (AGU) (“Angus & Ross” or
the “Company”) is pleased to announce that the Company
and Teather & Greenwood Limited have successfully placed 33,000,000
new ordinary shares of 1 pence each in the capital of the Company
("Shares"), at a price of 10p per Share,
with institutional investors, conditional on admission to trading
of the Shares on AIM.
Summary
- Placing of 33.0m Shares at 10p per Share, raising £3.3m
before expenses.
- Angus & Ross’s main asset;
the Black Angel mine in Greenland, offers significant potential
with proven reserves of 1.7 million tonnes of high grade zinc
and lead ore and potential for a further 1.3 million tonnes in
the surrounding areas
- Base case - proven reserves at Black Angel of 1.7 million tonnes
of high grade zinc and lead ore, giving an NPV of $52m* (source:
Wardell Armstrong International)
- Improved case – if 1.3 million
tonnes additional reserves are found at Black Angel and surrounding
areas, this will give an NPV of NPV $189m* (source: Wardell
Armstrong International)
- New ore outcrop discovered beneath retreating glacier
- The funds will be used for:
- 2006-07 Exploration Programme:
- 6,000-7,000m of new diamond drilling
- Reinterpretation and computer modelling of old data
- New airborne geophysical survey
- Environmental Impact Assessment Study and permitting
- Feasibility Study
- Further exploration and for the re-entry of the Black Angel
zinc mine
- Working capital for the Company
This is a further step in the re-focussing
of Angus & Ross
on the rich zinc, lead and silver ore deposits in Greenland
* - see Notes to Editors below
Following the placing there will be 123,220,803 Shares in issue. The new Shares will rank equally with existing
Shares and the new Shares are expected to be admitted to trading
on AIM on or around 9 March 2006.
Robin Andrews, CEO of Angus & Ross,
said:
“We are excited to announce this successful placing. It
will mean we can finalise the reinterpretation and modelling of existing
data from the Black Angel mine, initiate an airborne geophysical
survey and prove up our initial exploration.
“We have a very experienced and senior
team leading the operations, many of whom have direct experience
of the Black Angel mine and surrounding probable reserves that
will be explored.”
Angus & Ross
plc
Robin Andrews (Chairman) 01751 430 988
Paul
Williams (Finance Director) 01606 855 022
Financial
Dynamics,
Billy Clegg, Edward Westropp, 020
7831 3113
Notes to Editors
Angus & Ross PLC
Angus & Ross PLC, holds the beneficial title to two exploration
licence areas covering the Black Angel mine and surrounding area
in West Greenland near Maarmorilik. The third licence area has been
applied for in October 2005 and has been approved.
The Black Angel Project is located in West Greenland and consists
of:
- The Black Angel zinc/lead mine
- 128 sq km of surrounding exploration area and 59 sq km licence
extension applied for
A pre-feasibility study completed by Wardell Armstrong International
in January 2006 concluded that there is a strong economic case
to proceed with the project:
- Base case (1.7 million tonnes proven reserves): NPV $52m* (@10%)
IRR 35% on $38m capital expenditure requirement
- Improved case (if 1.3 million tonnes additional reserves are
found): NPV $189m* (@10%) IRR 56% on $46m capital expenditure requirement
* - at $1,950/t zinc and $1,100/t lead
Black Angel Mine:
Brief History:
- Deposit discovered in the 1930s
- Major exploration in the 1960s by Cominco
- Mine opened in 1973 and closed in 1990
- Licence acquired by Angus & Ross PLC in 2003
The Mining Plan:
- Between 2.4** and 3 million tonnes of ore remains in the mine
(mostly in pillars).
- 1.7 Mt is classified as “proven reserve” at 9.7%
zinc, 3.1% lead and 21g/t silver and can be mined (these grades
include dilution)
- Further 0.5m tonnes classified as “probable reserve”
- Another 0.7m tonnes required for the “improved case”
** - official estimates by the Geological Survey of Denmark & Greenland
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