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Peter Hambro Mining (POG)

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Wednesday 17 October, 2007

Peter Hambro Mining

Exercise of Greenshoe

Peter Hambro Mining PLC
17 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

                                       
                            PETER HAMBRO MINING PLC
      EXERCISE OF GREENSHOE ON GOLD EQUIVALENT EXCHANGEABLE BONDS OFFERING


Wednesday, 17 October 2007


Peter Hambro Mining Plc (the "Company"), announces that further to the
announcement made on 5 October 2007, the greenshoe of US$10m for the Gold
Equivalent Exchangeable Bonds due 2012 (the "Bonds") has been successfully
exercised in full, taking the total issue size to US$180m.

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% per annum 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) up to 180,000 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 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 call period up to the fifteenth day before the date
fixed by the call for redemption. If not exchanged or previously redeemed the
Bonds will be redeemed at par on or about 19 October 2012.

Application has been made 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 facilities at Pioneer and to fund the exploration and development of
a number of other assets within the Group's portfolio.

JPMorgan Cazenove Limited is acting as the sole bookrunner of the offering and
is joint broker to the Company. Cannacord Adams Inc. and VTB Bank Europe plc are
acting as co-lead managers. Settlement is expected on or about 19 October 2007,
following receipt of the necessary consent to the raising of the proposed funds
from the Guernsey Financial Services Commission.

JPMorgan Cazenove Limited may, to the extent permitted by applicable law,
over-allot and effect other transactions with a view to supporting the market
price of the Bonds at a higher level than that which might otherwise prevail in
the open market. JPMorgan Cazenove Limited is not required to enter into such
transactions. Such activity if commenced may be discontinued at any time. In
connection with the offer of Bonds, the Company and the Issuer have agreed to
over-allotments being made and the Issuer agreed to issue the  additional Bonds
referred to in this release to satisfy such over-allotments if required at the
option of JPMorgan Cazenove Limited.

Note: this announcement updates and corrects the announcement made on 5 October
2007 where it was stated that the upsized issue size of US$170m, with a
greenshoe of US$10m could be exchangeable in aggregate into the cash equivalent
of 150,000 Troy ounces of gold. This announcement states that the US$180m issue
size can be exchangeable in aggregate into the cash equivalent of up to 180,000
Troy ounces of gold.

-END-


For further information:

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

Tom Randell            Merlin Financial             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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