Placing of ?1.1million to Accelerate Drill Program

RNS Number : 5994V

FinnAust Mining PLC

29 October 2014

 



FinnAust Mining Plc / EPIC: FAM / Sector: Natural Resources

29 October 2014

FinnAust Mining Plc ('FinnAust' or 'the Company')

Placing of £1.1million at 2.25 pence per share to accelerate drilling at Hammaslahti Copper, Zinc Discovery

FinnAust Mining plc, the AIM listed exploration company with a multi-project copper, zinc and nickel portfolio in Finland and Austria, is pleased to announce that it has raised £1.1 million (before expenses) by way of a placing of 48,888,890 new ordinary shares of 2 pence each in the capital of the Company ('the Placing Shares') at 2.25 pence per share, with new and existing shareholders ('the Placing'). The funds raised will rapidly accelerate the Company's rolling campaign which is being implemented across its three prospective Finnish projects, and is currently focused on the Hammaslahti Copper-Gold-Zinc Project ('Hammaslahti').

The Company's major shareholder and Australia's third largest nickel producer, Western Areas Limited ('WSA'), has subscribed for 11,111,112 Placing Shares. Accordingly, following admission of the Placing Shares to trading on AIM, WSA will have an interest in 178,611,112 ordinary shares of 2 pence each, representing 60.34 per cent. of the issued ordinary share capital of the Company as enlarged by the Placing.

FinnAust Executive Director Alastair Clayton said, "The positive results received to date from the Hammaslahti discovery have fuelled our desire to strengthen our knowledge of the mineralisation at the asset and, as evidenced by strong market support for this placement from both new and existing investors including WSA, we are not alone in this. With these funds now secured, our drilling campaign will be accelerated and we look forward to providing consistent news flow from Hammaslahti and our other projects on the back of this, going forward."

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM ('Admission'). It is expected that Admission will become effective on or around 4 November 2014.

Total Voting Rights

Following Admission of the Placing Shares and for the purposes of the FCA's Disclosure and Transparency Rules, the Company advises that the total number of shares in issue and total voting rights will be 295,986,560 Ordinary Shares of 2 pence each.

FinnAust does not currently hold any shares in treasury and, therefore, the above figure may be used by shareholders 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.

**ENDS**

For further information please visit www.finnaustmining.com or contact:

Alastair Clayton	FinnAust Mining Plc	Company	Tel: [phone]
Ewan Leggat	S. P. Angel Corporate Finance LLP	Nomad & Joint Broker	Tel: [phone]
Katy Birkin	S. P. Angel Corporate Finance LLP	Nomad & Joint Broker	Tel: [phone]
Lindsay Mair	Sanlam Securities UK	Joint Broker	Tel: [phone]
James Thomas	Sanlam Securities UK	Joint Broker	Tel: [phone]
Elisabeth Cowell	St Brides Media & Finance Ltd	PR	Tel: [phone]
Charlotte Heap	St Brides Media & Finance Ltd	PR	Tel: [phone]

 

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