Share Buyback

RNS Number : 2242V

Griffin Mining Ld

27 May 2008

 



27th  May 2008

SHARE BUY BACK OF 79 MILLION SHARES FROM CITADEL

THE COMPANY BOOKS $42 MILLION GAIN FROM SALE

Griffin Mining Limited ('Griffin' or the 'Company') is pleased to announce that it has agreed to buy back for cancellation from Citadel Equity Fund Ltd ('Citadel'), 79,851,818 shares at £0.765 per share (68,181,818 of which were issued to Citadel at £1.10 per share in July 2007) for a total sum payable of £61.1 million, realising a net gain to the Company of £18.7 million or $41.9 million. After the transaction has been consummated, the Company will have reduced the outstanding shares in the Company from 261,509,549 to 181,657,731 whilst retaining some $90 million in cash and no debt.

The directors of Griffin, having consulted with its nominated adviser, consider that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Chairman Mladen Ninkov commented, 'The Company is extremely pleased with this share buy-back. It enables Griffin to significantly reduce its outstanding share capital, increase per share earnings, maintain a large cash balance for future acquisitions and crystallises a $42 million gain for shareholders. The Company's operations continue unabated with the final stage of the mill expansion at Caijiaying due for completion by the end of this summer. I look forward to further good news as the year continues.'  

Further information

Mladen Ninkov - Chairman                      Telephone: [phone]

Roger Goodwin - Finance Director

Griffin Mining Limited

Adrian Hadden                                          Telephone: [phone]

Collins Stewart Europe Limited    

Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM).

The Company's news releases are available on the Company's web site: www.griffinmining.com

 

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