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Peter Hambro Mining (POG)

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Friday 05 October, 2007

Peter Hambro Mining

Gold Exchangeable Bonds

Peter Hambro Mining PLC
05 October 2007



THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN
OR INTO THE UNITED STATES, CANADA, AUSTRALIA, THE RUSSIAN FEDERATION OR JAPAN
OR TO US, CANADIAN, AUSTRALIAN, RUSSIAN OR JAPANESE PERSONS

Friday, 5 October 2007


                            PETER HAMBRO MINING PLC

                  GOLD EQUIVALENT EXCHANGEABLE BONDS OFFERING


Peter Hambro Mining Plc (the "Company") today announces that, through JPMorgan
Cazenove, it has launched an offering of up to US$150 million of Gold Equivalent
Exchangeable Bonds due 2012 (the "Bonds").

The Bonds will be issued at par by the Company's wholly-owned subsidiary Peter
Hambro Mining Group Finance Limited (the "Issuer") and will be guaranteed by the
Company. The Bonds will carry a coupon of 7% payable semi-annually in arrear and
will be exchangeable at the option of the holders into the cash equivalent at
the time of the exchange of (in aggregate) 150,000 Troy ounces of gold at any
time from the second anniversary of the settlement of the bonds up until 20 days
prior to the maturity of the Bonds. The conversion price of US$1,000 per Troy
ounce represents a premium of approximately 38% to yesterday's London afternoon
gold price fixing. The Issuer has the option to call the Bonds at par plus
accrued interest after the fourth anniversary of the settlement provided that
the London afternoon gold price fixing reaches a level of US$ 1,500 per Troy
ounce, with investors retaining the right to convert within the 30 day call
period. If not exchanged or previously redeemed the Bonds will be redeemed at
par on or about 19 October 2012.

It is intended that application will be made in due course for the Bonds to be
admitted to trading on the Channel Islands Stock Exchange, but not on any other
stock exchange.

The Company intends to use the net proceeds of the offering for the development
of its Malomir deposit and its Yamal assets, the modular enlargement of its
processing facilites at Pioneer and to fund the exploration and development of a
number of other assets within the Group's portfolio.

Commenting on the transaction, the Company's Executive Chairman, Peter Hambro,
said:

"This capital raising provides us with greater funding certainty and the ability
to accelerate and expand our exploration and development plans. The interest
rate on the bonds is substantially lower than that which our advisers inform us
we would have had to pay if we had not offered gold price exposure at US$1,000 per
ounce. The price of gold has risen substantially since we started the Company
and at US$1,000 per ounce is almost three times higher than the low point it
reached. Accordingly it seemed reasonable to take advantage of this rise in
order to secure cheap and certain funding for our major project development.

The 150,000 ounces which are the subject of the option we have granted,
represent less than half of our anticipated production in 2008 and an even
smaller proportion when the new projects are on stream."


JPMorgan Cazenove Ltd. is acting as the sole bookrunner of the offering and is
joint broker to the Company. Cannacord Adams is acting as co-lead manager.
Settlement is expected on or about 19 October 2007, following receipt of the
necessary consent to the raising of the proposed capital from the Guernsey
Financial Services Commission.

                                    - END -


For further information:

Alya Samokhvalova        Peter Hambro Mining          T: +44 207 201 8900

Tom Randell              Merlin                       T: +44 207 653 6620

Ian Hannam              JPMorgan Cazenove            T: +44 207 588 2828
Patrick Magee           JPMorgan Cazenove
Joe Seifert             JPMorgan Cazenove


THIS DOCUMENT IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE
UNITED STATES. THIS DOCUMENT IS NOT AN OFFER OF SECURITIES FOR SALE INTO THE
UNITED STATES. THE SECURITIES DESCRIBED IN THIS DOCUMENT MAY NOT BE OFFERED OR
SOLD IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS
(AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933,
AS AMENDED) UNLESS THEY ARE REGISTERED OR EXEMPT FROM REGISTRATION. THERE WILL
BE NO PUBLIC OFFER OF SECURITIES IN THE UNITED STATES.

The distribution of this document and other information in connection with the
Bonds in certain jurisdictions may be restricted by law and persons into whose
possession any document or other information referred to herein comes should
inform themselves about and observe any such restrictions. Any failure to comply
with these restrictions may constitute a violation of the securities laws of any
such jurisdiction.

This document is directed only at persons who (i) are outside the United Kingdom
or (ii) have professional experience in matters relating to investments or to
whom this document may otherwise be directed without contravention of section 21
of the Financial Services and Markets Act 2000 (all such persons together being
referred to as "Relevant Persons"). This document is directed only at Relevant
Persons and must not be acted on or relied on by persons who are not Relevant
Persons. Any investment or investment activity to which this document relates is
available only to Relevant Persons and will be engaged only with Relevant
Persons. In addition, if and to the extent that this document is communicated
in, or the offered securities to which it relates is made in, any EEA member
state that has implemented Directive 2003/71/EC (together with any applicable
implementing measures in any member state, the "Prospectus Directive"), this
document and the Bonds are only addressed to and directed at persons in that
member state who are qualified investors within the meaning of the Prospectus
Directive (or who are other persons to whom the offer may lawfully be addressed)
and must not be acted on or relied on by other persons in that member state.

This document does not constitute or form part of an offer to sell, or the
solicitation of an offer to subscribe for, any securities to any person in the
United States or in any jurisdiction to whom or in which such offer or
solicitation is unlawful. None of the securities described herein have been or
will be registered under the U.S. Securities Act of 1933 (as amended) (the
"Securities Act") or under the securities laws or with any securities regulatory
authority of any state or other jurisdiction of the United States or of any
province or territory of Australia, Canada or Japan. The securities described
herein are being placed and sold only outside the United States to non-U.S.
persons in offshore transactions in reliance on Regulation S under the
Securities Act. None of the securities described herein may be offered or sold
in the United States or to U.S. persons absent an exemption from the applicable
registration requirements of the Securities Act.


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