Patagonia Gold (AIM: PGD, TSX: PAT) is pleased to announce it has raised, through Mirabaud Securities LLP, gross proceeds of £8.0 million (approximately $12.29 million) through a placing (the "Placing") of 5,769,000 new ordinary shares of 1p each in the Company (the "Placing Shares") and a subscription (the "Subscription") of 26,231,000 new ordinary shares of 1p each in the Company (together with the Placing Shares, the "New Ordinary Shares") each at a price of 25 pence per New Ordinary Share (the "Issue Price"). The Issue Price represents a discount of approximately 10.7 per cent. to the closing middle market price of 28 pence per ordinary share on 1 June 2012, being the last trading day prior to this announcement and the new shares represent approximately 4.3% of the enlarged issued share capital. The Placing Shares will be subscribed for in accordance with, and subject to, the terms and conditions set out in appendix I to this Announcement.
The net proceeds of the Placing and Subscription will be used to fund the development expenditure for the Lomada de Leiva gold production project, continuing exploration expenditure on the Cap-Oeste project in Argentina and to provide general working capital for the Company.
Pursuant to the Subscription, New Ordinary Shares were subscribed for by certain directors of the Company and persons connected with them, whose discloseable interests are as set out below.
Commenting on today's announcement, Bill Humphries, CEO of Patagonia Gold, said:
"We are very pleased to have received the continuing strong support from existing shareholders and in particular from the Miguens-Bemberg family of Argentina who show unstinting commitment to our company. We continue to make excellent progress on each of our principal properties and we look forward to achieving our first gold production at Lomada in the second half of this year. "
The accompanying investor presentation used for the Placing and Subscription is available on the Company's website: www.patagoniagold.com
Further details on the Placing
The Placing and Subscription are conditional on admission of the New Ordinary Shares to trading on AIM ("Admission"). The New Ordinary Shares will be fully paid and will rank pari passu in all respects with the Company's existing ordinary shares 1p each ("Ordinary Shares"). Application has been made to the London Stock Exchange for Admission and application has been made to list the New Ordinary Shares on the Toronto Stock Exchange. It is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 a.m. on Monday, 11 June 2012. Following Admission the Company's issued share capital will consist of 779,665,878 Ordinary Shares with voting rights. Patagonia Gold does not hold any Ordinary Shares in treasury.
The aforementioned figure of 779,665,878 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 to their interest in, Patagonia Gold under the Financial Service Authority's Disclosure and Transparency Rules.
The participation of Carlos Miguens (and connected persons) and William Humphries in the Subscription is deemed to be a related party transaction under the AIM Rules. The Company's independent Directors consider, having consulted with Strand Hanson Limited, the Company's nominated adviser, that their participation in the Subscription is fair and reasonable insofar as the Company's shareholders are concerned.
About Patagonia Gold
Patagonia Gold Plc is an advanced mining exploration company that seeks to grow shareholder value through the acquisition, exploration and development of gold and silver projects in the southern Patagonia region of Argentina. The Company is primarily focused on the development of two properties: the flagship Cap-Oeste project and the nearby COSE project, which is expected to begin generating free cash flow by 2013. Patagonia Gold, indirectly through its subsidiaries or under option agreements, has mineral rights to over 220 properties in several provinces of Argentina and Chile, covering approximately 800,000 hectares, being one of the largest landholders in the province of Santa Cruz. The Company is headquartered in London, with subsidiary offices in Buenos Aires and Toronto.
Patagonia Gold is listed on the Toronto Stock Exchange (TSX) under the symbol PAT and has been listed on the AIM market of the London Stock Exchange under the symbol PGD since 2003.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain information that may constitute "forward-looking information" under applicable securities legislation. Forward looking information includes, but is not limited to, statements about the expected closing of the Placing and Subscription, the admission of the New Ordinary Shares to trading and the use of proceeds from the Placing and Subscription. Forward-looking information is necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's public disclosure, the risk that regulatory approvals required in connection with the Placing and Subscription may not be received and the risk that other conditions of the Placing and Subscription may not be met. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Bill Humphries/Nigel Everest
Patagonia Gold Plc
Tel: +44 (0) 20 7409 7444
Philip Yee, CFO
Patagonia Gold Plc
Tel: +1 (416) 572 2007
Mirabaud Securities LLP
Tel: +44 (0) 20 7878 3360
David Bick/Mark Longson
Square 1 Consulting
Tel:+44 (0) 20 7929 5599
Simon Raggett/Angela Hallett
Strand Hanson Limited
Tel: +44 (0) 20 7409 3494
Barnes Communications Inc.
Tel: +1 (416) 367 5000
|Teléfono||Tel: +44 (0)20 7409 7444|
|Dirección||15 Upper Grosvenor Street - London W1K 7PJ|
|PATAGONIA GOLD SA|
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