Peter Hambro Mining PLC
12 June 2003
12 June 2003
Peter Hambro Mining SIGNS Tokur acquisition
vendor PLACING OF 6 million shares
The Board of Peter Hambro Mining plc announces that it has today entered into a
conditional agreement with Reagrove Services Limited ("the Vendor") for the
acquisition of the Tokur Deposit mining licence (the "Licence") on terms
substantially the same as those set out in the Heads of Agreement dated 7 March
2003 and disclosed in the circular to shareholders dated 24 March 2003.
The consideration for the acquisition is a payment of US$6 million in cash and
the issue of 6,000,000 Shares (with a deemed aggregate value of US$24,000,000),
which are being placed by Canaccord Capital (Europe) Ltd. Under the acquisition
agreement the Vendor has additionally agreed to deposit part of the
consideration with the Company for 12 months as surety for any claim against
the Vendor. Subject to drilling on the Tokur Deposit satisfying a pre- agreed
test within the 12 month period from thedate of Admission and to there being no
claims against the Vendor, the Company will repay this deposit to the Vendor.
On the second anniversary of the date of Admission (or earlier at the sole
discretion of the Company and subject to satisfaction of the pre agreed test and
only if the relevant evaluation has been completed), the Company will issue an
additional 1,500,000 Shares to the Vendor provided that it is established that
the Tokur deposit contains at least 60 tonnes of gold in category C2 reserves
available for open pit exploitation under the Tokur Licence.
Commenting on the announcement, Peter Hambro, Executive Chairman said:
"For some time now there has been a move to consolidate the gold mining business
in Russia and our acquisition of the Tokur deposit is part of this process.
Tokur is an important gold mining asset in the Amur Region, where our subsidiary
Pokrovskiy Rudnik is a major producer, and the acquisition fits with our limited
programme of non-organic growth.
I hope that the placing of the vendor shares with institutional investors will
further increase liquidity in the Company's shares and am pleased to see new
institutions joining our share register."
Notes to Editors:
The Tokur Deposit is located in the Amur Region (far East Russia) some 450 kms
from the Pokrovskiy mine and is served by road and rail connections. Independent
resource estimates for the deposit indicate reserves and resources 8.1 million
ounces. On this basis, completion of the acquisition takes the Group's estimated
total Category P and C resources and reserves for the Group to approximately 19
Peter Hambro Peter Hambro Mining PLC
+44 20 7393 0102
David Simonson/Nicola Davidson Merlin Financial
+44 20 7606 1244/+44 7711 70 91 70
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