Serabi Mining plc
30 March 2006
SERABI MINING PLC ANNOUNCES SHARE PLACING
LONDON 30 March 2006: Serabi Mining plc ('Serabi' or 'the Company'), the
Brazilian gold mining and exploration company, is pleased to announce that it
has conditionally placed, in aggregate, 6,500,000 new ordinary shares of 10p
each (the 'Placing Shares') at a price of 40p per Placing Share. Once completed,
the Placing will raise approximately £2.46 million (net of expenses).
The proceeds raised from the Placing will be used to fund several productivity
enhancing initiatives designed to improve the profitability of the Palito Gold
Mine in the short-term, and to accelerate its exploration programme throughout
the Jardim do Ouro District and Tapajos Region.
The Placing Shares will be placed with institutional investors, and dealings in
the Placing Shares are expected to commence on AIM at 8.00 a.m. on 5 April,
2006.
The Placing Shares are equivalent to approximately 6.3% of the Company's
existing issued ordinary share capital, and when issued, will represent
approximately 5.9% of the Company's enlarged issued share capital.
KBC Peel Hunt is acting as nominated adviser and broker to Serabi, and Ambrian
Partners is acting as joint broker.
Commenting on the Placing, Serabi Chairman, Graham Roberts said:
'The funds raised will enable Serabi to reduce operating costs at Palito,
improve productivity throughout the operation and enhance the infrastructure
required to grow Palito into a long life, low cost mining operation. As a result
of these initiatives, we expect to declare commercial production at Palito in
the second half of 2006.
Ongoing work at the Company's portfolio of projects in the Tapajos is yielding
encouraging results which we believe justifies an accelerated exploration
programme for 2006. We expect we will be able to report to shareholders the
first set of drilling results from this drilling programme in the near future.'
For further information please contact:
Graham Roberts Tel: +44 (0)20 7220 9550
Chairman
Clive Line Tel: +44 (0)20 7220 9553
Finance Director
Chris Sattler Tel: +44 (0)20 7220 9552
Manager, Corporate Development
David Davies/Matt Goode Tel: +44 (0)20 7418 8900
KBC Peel Hunt
Richard Chase Tel: +44 (0)20 7776 6461
Ambrian Partners
Email: contact@serabimining.com
Web: www.serabimining.com
This information is provided by RNS
The company news service from the London Stock Exchange
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