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Angel Mining PLC (ANGM)

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Wednesday 09 May, 2012

Angel Mining PLC

Trading Statement and Issue of Equity

RNS Number : 9605C
Angel Mining PLC
09 May 2012
 



ANGEL MINING PLC

("Angel Mining" or the "Company")

AIM:   ANGM

 

TRADING UPDATE AND ISSUE OF SHARES

 

The board of Angel Mining plc is pleased to announce that, since the main generator was repaired and processing of ore recommenced on 5th April, the mining and processing operations have progressed well at the Nalunaq Gold Mine. The circuit is now well primed with gold and on 6th May the Company completed a gold doré pour of 19.295kg (538oz).  Future gold pours are planned on a three weekly cycle and, following the next gold pour, the mine and plant are expected to settle into a much more consistent period of cash generative production.

 

The Company also announces that it has raised approximately £260,000 through the issue of 18,618,073 new ordinary shares of 1p each in the Company ("Ordinary Shares") to YA Global masters SPV Ltd. at 1.40p per share under the terms of the Standby Equity Distribution Agreement ("SEDA") announced on 28 July 2011. The proceeds will be used to meet the Company's repayment obligations for April 2012 under the promissory note facility with Yorkville which was announced at the same time as the SEDA.

 

Application will be made for the 18,618,073 new Ordinary Shares to be admitted to trading on AIM ("Admission"). It is expected that admission will become effective and that dealings will commence on Monday, 14 May 2012.

 

Nicholas Hall, CEO, commented:  "Nalunaq now has a good stockpile of high grade ore and a plant that is working well, so I am expecting a summer of good progress and steady cash generation.  The Black Angel team is now preparing to present its project to potential investors during the next two months.  This zinc/lead project is the Company's principle asset, which it plans to bring into production in Q2 2014."

 

Enquiries:

 

Angel Mining plc

Nicholas Hall, Chief Executive Officer

Kevin McNair, Chief Financial Officer

 

07931 709 053

07900 690 908

 

Fox-Davies Capital (Nominated Adviser & Broker)

Daniel Fox-Davies

Simon Leathers

 

                     0203 463 5010

 

Bishopsgate Communications Limited

Nick Rome/Shabnam Bashir

 

 0207 562 3350

 

Background to Angel Mining

 

Nalunaq

 

The Company first poured gold at Nalunaq on 27 May 2011 following final completion of the processing plant and is targeting optimal production by Q1 2012 of approximately 24,000 oz per annum thereby providing the Company with cash flow which will be dedicated to funding development at Black Angel, further exploration at Nalunaq and reducing debt.  The current mining plan anticipates a mine life of two to five years, subject to further exploration work. The directors anticipate that Nalunaq may enter into toll treatment arrangements with other potential gold mining activities in the region where appropriate. Angel Mining currently operates the only operational gold mine in the region and anticipates that its operation may be suitable for processing ore from other gold mining companies in the region in the future. 

 

Black Angel

 

The Black Angel project is a high grade zinc/lead project based around a previously developed mine in the north of Greenland.  The table below sets out the JORC Code compliant mineral resources estimate for the Black Angel project which includes three sets of zones within the mine and three satellite deposits which have been explored.

 

Summary of Black Angel Mineral Resources (JORC) as of 31 December 2007


Category

Tonnage (kt)

Zinc

(%)

Lead

(%)

Silver (g/t)

Mineable reserves (kt)

Angel Zone

Indicated

791

13.0

4.5

25.0

218

Cover Zone

Indicated

522

8.3

2.4

18.0

231

Other zones within the Black Angel mine

Indicated

697

10.4

3.3

13.0

-

South Lakes Glacier

Indicated

1,726

6.9

2.5

14.5

-

Ark

Inferred

492

4.7

2.2

20.4

-

Nunngarut 2

Indicated

196

9.0

3.4

31.0

-

Nunngarut 2

Inferred

1

4.5

1.9

9.0

-

Total


4,425




449

Source: Wardell Armstrong International Ltd.

 

The project consists of three phases:

 

Phase I: Complete the rehabilitation of infrastructure to allow access to the mine, the mine camp and related facilities.

 

Phase II: Complete the detailed review of the pillar extraction programme within the Angel and Cover Zones, including the construction of the process plant and related systems to allow for the shipment of concentrate from the site.

 

Phase III: Develop a further exploration programme for the existing JORC resources at the Ark and Glacier deposits as well as identified mineralization at Deep Ice, Nunngarut and a number of other exploration targets within the license area (see the announcements made by the Company on 6 June 2006 titled "Black Angel 2006 Resource Statement" and on 30 November 2007 titled "Black Angel 2007 Resource Statement").

 

Dr Bob Dowdell is the qualified person that has reviewed and approved the technical information contained in this announcement.  Dr Dowdell holds a BSc and Doctorate in Mining Engineering from Newcastle University and is a Chartered Engineer and Member of the Institution of Mining and Metallurgy.

 

More information on the Company is available on the website, please click here: http://www.angelmining.com/ 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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