Information  X 
Enter a valid email address

Central Afr. Min&Exp (CFM)

  Print          Annual reports

Monday 10 March, 2008

Central Afr. Min&Exp

Placing Announcement

Central African Mining&Exploration
10 March 2008

  Central African Mining & Exploration Company Plc ('CAMEC' or 'the Company')

                CFM / Index: AIM / Sector: Mining & Exploration

10 March 2008

                Central African Mining & Exploration Company Plc

                      To Raise £43.5 Million For Expansion

CAMEC, the fully integrated exploration, mining and production company, has
conditionally raised £43.5 million through the placing of 72,500,000 new
ordinary shares of 0.1p each in the Company ("New Ordinary Shares") at 60p per
share, with both new and existing institutions.

The money raised will be used to accelerate the development of the Company's
assets in the DRC, in particular the Luita copper cobalt SX/EW facility, with a
view to rapidly achieving CAMEC's existing production targets of 100,000 tonnes
of copper cathode per annum, and then seeking to develop further production
capacity as quickly as possible. The funds raised through this placing will also
be used for the development of CAMEC's own sulphuric acid plant, upgrading the
Kakanda concentrator and to expedite intensive exploration of the concession
areas C17, C18, C19 and C21. The Board believes that its investment strategy
underlines CAMEC's commitment to the DRC and to developing the country's assets
in partnership with Gecamines for the benefit of all stakeholders and the DRC

The placing monies will initially be held in escrow, as the placing is
conditional on the formal completion of the joint venture agreement between the
Company and Prairie International Limited ("Prairie"), the receipt by the
Company of the necessary approval from the Mining Cadastre in the DRC in respect
of the licences held by Boss Mining and Mukondo Mining, the production of
certain extracts from the mining registry books evidencing that the mining
rights are effective and enforceable as against third parties (in accordance
with Articles 190 and 323 of the DRC mining code) and no announcement being made
by the Government of the DRC contradicting such approval from the Mining
Cadastre following the successful conclusion of the Agreements between
Gecamines, the Company and Prairie. It is anticipated that the necessary
approval will be forthcoming from the Cadastre within the month.

CAMEC Chief Executive Officer Andrew Groves said, "We are pleased by the success
of this placing. We continue to see significant opportunities to invest and grow
our business in the DRC, to the benefit of CAMEC's shareholders and all our

Application will be made for the Admission of the 72,500,000 new ordinary shares
to trading on the AIM market once the conditions referred to above have been

                                  ** E N D S**

For further information please visit or contact:

Phil Edmonds                   CAMEC                          Tel: 0845 108 6060
Andrew Groves                  CAMEC                          Tel: 0845 108 6060
Jonathan Wright                Seymour Pierce Ltd             Tel: 020 7107 8000
Ben Brewerton                  Financial Dynamics             Tel: 020 7831 3113

                      This information is provided by RNS
            The company news service from the London Stock Exchange          LMBTMMIMTTP

a d v e r t i s e m e n t