14 February 2013
Papua Mining plc (PML.L)
Placing to raise £2,496,000
Papua Mining plc (“Papua” or the “Company”), a UK company focused on the exploration for and, if commercially feasible, development of gold and copper deposits in Papua New Guinea (“PNG”) is pleased to announce that it has raised £2,496,000 before expenses (the “Placing”) through the issue of 3,120,000 new Ordinary Shares of £0.10 each (the “Placing Shares”) to private and institutional investors at a price of £0.80 per Placing Share.
The net proceeds of the Placing will be utilised to assist in the funding of the Company’s exploration programmes on its licences in PNG and, in particular, the new funds will enable the Company to increase the amount of drilling to be carried out on its existing and emerging targets in the Nakru area of West New Britain where recent exploration results have been particularly positive.
The Placing is being carried out under the Company’s current authority from its shareholders obtained at last year’s Annual General Meeting to issue shares for cash on a non pre-emptive basis. The Placing Shares being issued will represent approximately 8.9 per cent of the issued share capital of the Company, as enlarged by the Placing (the “Enlarged Issued Share Capital”).
Application has been made to the London Stock Exchange for the Placing Shares, which will rank pari passu with the existing Ordinary Shares in issue, to be admitted to trading on AIM (“Admission”). Admission is expected to become effective at 8.00 a.m. on 21 February 2013.
The Enlarged Issued Share Capital will be 34,996,334 Ordinary Shares and the Company does not currently hold any shares in treasury. This figure of 34,996,334 Ordinary Shares may be used by shareholders in the Company 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 under the FSA’s Disclosure and Transparency Rules.
Commenting on the Placing, Hugh McCullough, CEO of Papua stated:
“Our recent exploration results on Exploration Licence 1462, West New Britain, have shown that there are a number of very strong targets emerging there. We expect to start drilling the Junction target next month while the zones at Flying Fox and Tripela also appear to be developing into highly mineralized, very important targets which will also require extensive drilling. This Placing will increase the amount of drilling we are able to do thereby providing a greater chance that we will discover the porphyry body that we believe may be present within our licence area.”
For further information please contact:
Papua Mining plc
Hugh McCullough CEO +353 1532 9535
Cenkos Securities – Nominated Adviser & Broker
Ken Fleming/Alan Stewart +44 131 220 6939
+44 207 397 8900
Square1 Consulting – Financial Public Relations
David Bick/Mark Longson +44 207 929 5599