First Day of Dealings

RNS Number : 5572T

Central Asia Metals PLC

30 September 2010

 



30 September 2010

CENTRAL ASIA METALS PLC

("CAML" or the "Company")

Admission to Trading on AIM 

CAML successfully raises GBP38.1m (USD60m) IPO

Highlights

·     Placing of 39,735,100 new ordinary shares at 96p each to raise GBP38.1 million (USD60 million) before expenses

·     Admission to AIM with a market capitalisation at the placing price of GBP82.7 million

·     Proceeds will be used to fund the construction of a commercial SX-EW plant at Kounrad, Kazakhstan, following a successful existing pilot scale operation, which will produce 10,000 tonnes per annum of copper. First production expected in Q4 2011

·     Proceeds will also be used to further develop the Company's exploration assets at Alag Bayan (copper/gold) and Handgait (molybdenum), Mongolia, in addition to funding working capital

Central Asia Metals plc (AIM:CAML), a mining exploration and development company focused on base and precious metals in Central Asia, announces its admission to trading on AIM and the commencement of dealings in its shares on AIM at 8.00am today and the successful completion through Mirabaud Securities of a placing (the "Placing") which raised gross proceeds of GBP38.1 million (USD60 million) for the Company.  

Pursuant to the Placing, the Company has issued 39,735,100 new ordinary shares at 96 pence each (the "Placing Price") to institutional and other investors.  At the Placing Price, the market capitalisation of Central Asia Metals immediately following completion of the Placing and Admission to AIM is approximately GBP82.7 million.

KPMG Corporate Finance is Nominated Adviser to the Company and Mirabaud Securities LLP is Broker.

Overview of Central Asia Metals plc

Central Asia Metals Plc is a UK incorporated company that currently has interests in a number of copper, gold and molybdenum mining exploration and development assets in Kazakhstan and Mongolia.

In Kazakhstan, the Company has advanced plans for the construction of a plant at the former Kounrad copper mine that will have the capacity to deliver 10,000 tonnes per annum of near term, low-cost copper production.

Kounrad, acquired in September 2007, is the most developed asset. It was formerly an open-pit copper mine in Kazakhstan that was operated between 1936 and 2005.  The site around the mine contains a number of dumps of waste material from the mine from which copper can be extracted through an in-situ leaching process followed by Solvent Extraction - Electro-Winning (''SX-EW'').  A pilot scale SX-EW plant has been commissioned at the site and has been operating successfully since August 2008.  To date the Company has produced over 320 tonnes of cathode copper from the processing of material in the dumps for sale to third parties. Initial construction ground-works for the commercial SX-EW plant have already been started.

Central Asia Metals plans to construct a commercial SX-EW plant at the the old Kounrad mine in a joint venture with a Kazakh government entity, Saryarka.  Capital expenditure for the commercial SX-EW plant is estimated to be USD46.9 million with low direct cash operating cost estimated at USD0.38 per pound of copper produced.  Production at the plant is expected to commence in the fourth quarter of 2011, which will provide the Company with an early revenue stream.

Central Asia Metals also has exploration opportunities with the potential to deliver substantial additional upside.  One of these is Alag Bayan, an early stage exploration project in Mongolia, where Central Asia Metals is focused on outlining a potentially significant copper/gold porphyry target.  This asset is situated close to the Oyu Tolgoi copper mine being developed by Rio Tinto and Ivanhoe Mines.  In addition Central Asia Metals plans to develop further its molybdenum exploration project, Handgait, in Mongolia.

The Company has an experienced management team that has a proven track record of developing and commercialising mining opportunities in Central Asia.  Central Asia Metals plans to use this experience to look at additional opportunities in the region and is already in early stage discussions in respect of a new exploration and development opportunity.

Further details about Central Asia Metals can be found on the Company's website: www.centralasiametals.com

 Nick Clarke, CEO of Central Asia Metals, commented:

"We are delighted that the Company's shares have commenced trading on AIM.  Central Asia Metals has a well balanced asset portfolio of production, development and exploration assets, with the Kounrad Project on track to increase production at a very low operating cost.  We already have an established presence in Kazakhstan and Mongolia along with a track record of successful operations in each country.

"We also have the added benefit of being in close proximity to China, which is by far the world's largest consumer of copper and many other industrial commodities.  This growing market and the positive forecast for the copper price positions the Company well.  We look forward to keeping our new shareholders informed of the Company's forthcoming developments."

Enquiries:

Central Asia Metals Nick Clarke, CEO Nigel Robinson, CFO	[phone]
KPMG Corporate Finance Nominated Adviser Susan Walker	[phone]
Mirabaud Securities LLP Broker Peter Krens	[phone]
Pelham Bell Pottinger Charles Vivian Klara Kaczmarek	[phone] / [phone]

KPMG Corporate Finance, a division of KPMG LLP which is authorised and regulated by the Financial Services Authority for investment business activities, is acting for the Company as nominated adviser in relation to the matters set out in this announcement and is not acting for any other person in relation to these matters.  KPMG Corporate Finance will not be responsible to anyone other than Company for providing the protections afforded to its clients or for providing advice in relation to the contents of this announcement.

 

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