AFARAK BOARD RESOLUTION ON DIRECTED SHARE ISSUE

12:00 London, 14:00 Helsinki, 10 July 2014 - Afarak Group Plc, Stock Exchange Release


AFARAK BOARD RESOLUTION ON DIRECTED SHARE ISSUE

The Board of Afarak Group Plc ("Afarak" or the "Company") (LSE: AFRK, OMX: AFAGR) announces that it has, on 10 July 2014 resolved to offer 11,130,434 new ordinary shares in the Company ("New Shares") to the vendors of Mogale Alloys (a company  acquired in May 2009) under the settlement agreement announced on 11 October 2012. A maximum of 3,478,261 shares remain to be offered under the agreed settlement. 

The New Shares represent approximately 4.48 per cent of the current issued share capital and approximately 4.56 per cent of the total voting rights of the Company prior to the share issue. The New Shares are offered in derogation of the pre-emptive subscription right of shareholders and Board approval of the share issue is pursuant to the authorisation granted by the Annual General Meeting to the Board of Directors 8 May 2014. The subscription price will be recognized under the invested unrestricted equity fund.  

The subscription period for the New Shares commences on immediately and will continue until 17 July 2014. The New Shares are expected to be registered with the Finnish Trade Register in July 2014. Following registration an application will be made to the UK Listing Authority and the London Stock Exchange for admission to (i) the Official List and (ii) to trading on the London Stock Exchange's and NASDAQ OMX Helsinki's markets. A further update will be issued in due course. The New Shares carry shareholder rights as of the registration date with the Finnish Trade Register and will rank pari passu with the Company's existing issued ordinary shares.

Following issue of the New Shares, the total amount of shares in issue will be increased by 11,130,434 from 248,432,000 to 259,562,434 ordinary shares of no par value 4,244,627 ordinary shares are held in treasury.

AFARAK GROUP PLC
BOARD OF DIRECTORS

For additional information, please contact:

Afarak Group Plc
Danko Koncar, CEO, [phone],  [e-mail]

Investec Bank Plc
Jeremy Wrathall, [phone]

Afarak Group is a chrome mining and minerals producer focused on delivering sustainable growth with a speciality alloys business in southern Europe and a ferro alloys business in southern Africa. The Company is listed on NASDAQ OMX Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).
www.afarakgroup.com

Distribution:
NASDAQ OMX Helsinki
London Stock Exchange
main media
www.afarakgroup.com

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Afarak Group via Globenewswire

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