Placing

RNS Number : 3799C

Kenmare Resources PLC

29 August 2008

 



29 August 2008

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN

Kenmare Resources plc

Placing

Kenmare Resources plc (“Kenmare” or the “Company”), the owner and operator of the Moma Titanium Minerals Mine in Mozambique, is pleased to announce that it has entered into arrangements with its brokers, Canaccord Adams, Davy and Mirabaud Securities, to place 51,229,700 new Ordinary Shares of €0.06 each in the Company at STG£0.32 per share (the “Placing Shares”) to raise approximately STG£16.4 million (US$30 million) before expenses (the “Placing”).

 

The proceeds will be used to enable the Company to increase the production rate at the Moma mine to achieve production targets as set out in the Interim Management Report of the Interim Results Announcement released today and for general corporate purposes.

 

Michael Carvill, Managing Director of Kenmare, has agreed to subscribe for 170,800 Placing Shares bringing his interest in the Company to 3,810,709 Ordinary Shares or 0.47% of the enlarged share capital. Tony Lowrie, a Non-Executive Director of Kenmare, has agreed to subscribe for 200,000 Placing Shares bringing his interest in the Company to 2,464,230 Ordinary Shares or 0.31% of the enlarged share capital.

 

The Placing Shares represent 6.9% per cent of Kenmare's issued ordinary share capital as at 29 August 2008 and will rank pari passu in all respects with the existing Ordinary Shares in the Company.

N M Rothschild and Sons Limited acted as financial adviser to the Company.

Application will be made to the Irish Stock Exchange and to the UK Listing Authority for the Placing Shares to be admitted to, respectively, the Official List of the Irish Stock Exchange and to the Official List of the UK Listing Authority and application will be made to the Irish Stock Exchange and the London Stock Exchange for the Placing Shares to be admitted to trading on their respective main markets for listed securities (together 'Admission'). It is expected that Admission will become effective on 4 September 2008 and that dealings in the Placing Shares will commence at that time.

In conformity with Regulation 20 of the Transparency (Directive 2004/109/EC) Regulations 2007, the total number of Ordinary Shares of €0.06 each in issue following the Placing will be 795,129,245. Each Ordinary Share carries one vote. The Company holds no Ordinary Shares in treasury. Therefore, the total number of voting rights in Kenmare is 795,129,245. This figure may be used by shareholders as a denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Kenmare under the Transparency (Directive 2004/109/EC) Regulations 2007.

For further information:

Kenmare Resources plc

Michael Carvill, Managing Director

Tel: + 353 1 671 0411

Mob: + 353 87 674 0110

Tony McCluskey, Financial Director

Tel. [phone]

Mob. [phone]

Murray Consultants

Jim Milton

Tel: [phone]

Mob: [phone]

Conduit PR Ltd

Charlie Geller

Tel: [phone]

Mob: [phone]

www.kenmareresources.com 

This announcement is for information purposes only and does not constitute an offer or an invitation to acquire or dispose of any securities or investment advice in any jurisdiction. Without limitation to the foregoing, this announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire any securities in the capital of Kenmare in the United States, Canada, Australia, the Republic of South Africa or Japan or any jurisdiction in which such an offer or solicitation is unlawful and should not be relied upon in connection with any decision to acquire any securities in the capital of the Company. The Placing Shares have not been and will not be registered under the US Securities Act of 1933 as amended (the 'Securities Act') or under the securities laws of any state of the United States and may not be offered or sold within the United States unless they are registered with the US Securities and Exchange Commission or an exemption from registration is available. No public offering of the Placing Shares will be made in the United States or elsewhere.

End

 

END

 

 

MSCILFLRTVIAFIT