Completion of £3.4 million Subscription

RNS Number : 6421K

GoldBridges Global Resources PLC

20 April 2015

 



20 April 2015

GoldBridges Global Resources plc
("GoldBridges" or the "Company")

Completion of £3.4 million Subscription

GoldBridges Global Resources plc (LSE: GBGR), the gold mining and development company, is pleased to announce that it has raised gross proceeds of approximately £3.4 million through a subscription of 123,000,000 new Ordinary Shares of 0.1 pence each (the "Subscription Shares") through Visor Capital (UK) Limited ("Visor"), who acted as broker on behalf of the Company in relation to the subscription, at a price of 2.8 pence per Ordinary Share (the "Subscription").  This was at a premium of 6.67% to the closing price on 17 April 2015 of 2.625 pence per share.

The net proceeds of the Subscription will be used for general working capital purposes, and will form part of the funding to enable the Company to develop the underground mine at Sekisovskoye in accordance with the Company's business plan.

The Company has applied for admission of the Subscription Shares to trading on the Official List of the UK Listing Authority (by way of a Standard Listing under Chapter 14 of the Listing Rules) and to trading on the London Stock Exchange's Main Market for listed securities ("Admission"). Admission of the Subscription Shares, which will rank pari passu in all respects with the existing Ordinary Shares of the Company, is expected to occur on or around 24 April 2015.

Total Voting Rights

The Company has no Ordinary Shares held in treasury. The total number of voting rights in the Company following the Subscription will therefore be 2,334,342,130. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

For further information please contact:

GoldBridges Global Resources Plc

Louise Wrathall [phone]

Strand Hanson (Financial Adviser and Joint Broker)

Andrew Emmott / James Spinney / Ritchie Balmer [phone]

Cantor Fitzgerald Europe (Joint Broker)

Stewart Dickson / Jeremy Stephenson [phone]

Bell Pottinger (Financial PR)

Daniel Thole / Marianna Bowes / Richard Crowley [phone]

Information on the Company

The Company is a gold mining, exploration and development group based in Kazakhstan. Whilst the Company was initially established to develop and operate the Sekisovskoye gold and silver mine in the East Kazakhstan Region, it is now actively targeting additional gold mining opportunities in Kazakhstan, including the prospective Karasuyskoye ore field which adjoins the Sekisovskoye deposit.

The Company's principal assets is the exclusive right to explore and extract gold and silver ore from the Sekisovskoye deposit in the Glubokovsky District of the East Kazakhstan Region, and the potential to develop the Karasuyskoye ore fields. The Company holds a 100 per cent shareholding in DTOO Gornorudnoe Predpriatie Sekisovskoye ("DGPS") which holds a subsoil use contract in relation to the Sekisovskoye deposit, covering a total area of 0.855km². The subsoil use contract is valid until 2020 and the Company currently intends to seek to extend the contract in accordance with its terms. The Company also holds a 100% shareholding in DTOO Altai Ken-Bayitu LLP which owns and operates the processing plant at the Sekisovskoye deposit. The Sekisovskoye deposit is located at the village of Sekisovka, approximately 40km north of the town of Ust-Kamenogorsk, the capital city of the East Kazakhstan Region. The current operation is exploiting two open pits where the near-vertical deposits extend to the surface. The open pits are nearing their end of life in 2015, and the Company is developing an underground extension to exploit the deposits to depth. The Company intends that the Sekisovskoye deposit shall become a selective-mining underground operation.

The Company produced approximately 30,669oz of gold and 34,902oz of silver in the year ended 31 December 2013 and 32,994oz of gold and 41,390oz of silver in the year ended 31 December 2014.

As at 31 May 2014, the Company's proven and probable reserves consisted of 2.3Moz of gold and 3.0Moz of silver, and the Company's measured, indicated and inferred resources consisted of 5.1Moz of gold and 3.5Moz of silver, in each case as classified in accordance with JORC.

In the year ended 31 December 2013, the Company's consolidated revenue was $42.4 million and its EBITDA was US$(0.6) million. In the six months ended 30 June 2014, the Company's consolidated revenue was US$16.7 million and its EBITDA was US$5.9 million.

Further details can be found in the Company's website www.goldbridgesplc.com

 

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