EGM approves $30m debt financing package for
the Black Angel project
05/07/2007
Press Release
Angus & Ross plc, is pleased to update the market with developments at its Black Angel mine following Monday’s (2/7/07) EGM, at which shareholders approved the US$30 million facility agreement with Cyrus Capital Partners LP.
This is an important step forward for the Company especially given the fact that the financing has been achieved before a Bankable Feasibility Study has been completed. Now that the financing is in place the Company can start to accelerate the development of the Black Angel project, including the start of initial ore production in 2008 and increased exploration activity.
- US$30 million loan facility agreed with 37.5 million 3 year warrant issue at 20p;
- Exercise of warrants at today’s exchange rates would amount to a further US$15 million in financing;
- Access to the financing should enable the re-opening of the mine to take place a year earlier than anticipated;
- Onsite camp established; civil engineering work commenced along with cable car renovation;
- Initial production and ore shipments from the mine expected to commence in 2008 with full scale concentrate production in 2009;
- Exploration drilling underway with over 2400 metres already completed so far this year and a 150 metre extension to the Glacier discovery defined;
- Recent offset hole at the Glacier discovery has intersected 3 metres of mineralization visually estimated to contain 30% combined Zn/Pb;
- Exploration programme being increased to test other prospects on the 259 sq km licence area; drilling to start within the mine later in the year.
Access
The civil engineering required for the installation of the cable car, which will enable access to the mine, is currently underway. In addition, the cable car is presently being renovated and will be arriving at the mine later this year.
Drilling
Once the cable car is up and running, Angus & Ross will be able to significantly increase mining and exploration operations within the mine. However, exploration outside the mine is currently underway with 2,400m of drilling already completed. This includes confirmation of a 150m extension of the 700m strike length of the South Lakes Glacier mineralized trend drilled last year. The first set of samples has already been sent to laboratories in Sweden and results will be announced as soon as available.
In the last two days the company received a report that one offset hole to the Glacier extension had intersected 3 metres of high grade mineralization visually estimated to contain about 30% combined Zn/Pb (at a depth of around 165m). Experience from last year’s drilling allows confidence that visual estimates are usually close to assayed values.
Infrastructure
The Company continues to progress towards reopening the mine and will shortly be sending a team in to inspect the mine infrastructure left by Cominco and Boliden. A positive report could result in significant cost and time savings. Initial inspection by a former Power Plant manager last week established that the electrical installation of the mine is intact.
Camp Refurbishment
The Black Angel camp has now been fully refurbished and has good facilities for 44 people. The focus remains firmly on gearing up operations with further drill crews and construction workers planned to be on site later this year.
Brazil and Australia
Angus & Ross’s Brazilian and Australian operations continue to develop with the Company focusing on providing a broad exploration and production portfolio. In particular an update to the Brazilian operations was announced on 26th June; details are on the company’s website – www.angusandross.com
Angus & Ross Chairman Robin Andrews said: "We are pleased to have won the support of our shareholders in securing this finance facility. We can now accelerate the development of the Black Angel mine, with initial production and ore shipments expected to commence in 2008. The mine reopening is now ahead of schedule and we are keen to push ahead with our summer exploration programme. Already preliminary results are giving great encouragement.
With work also progressing well at our Brazilian projects, we feel this is an exciting time for Angus & Ross, and we look forward to updating the market with further progress in due course".
-ENDS-
For further
information contact:
Angus & Ross
Robin Andrews, Chairman Tel:
01751 430988
Paul Williams, Finance Director Tel: 01606 855022
Bishopsgate
Communications Ltd
Nick Rome and Fran Read Tel: 020 7562 3350
Teather & Greenwood
Fred Walsh and Seb Jones Tel:020 7426 9000
More information
For more detailed information about the Loan Facility please see our Press Release of 7th June 2007 (shortcut here)
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