Angel Mining PLC Financing Update - Short Term Loan (4444I)
25 July 2012 - 5:21PM
UK Regulatory
TIDMANGM
RNS Number : 4444I
Angel Mining PLC
25 July 2012
ANGEL MINING PLC
("Angel Mining" or the "Company", AIM: ANGM)
Financing Update - Short Term Loan
The Board of Angel Mining, the Greenland - focused mining and
exploration company, is pleased to announce that it has agreed a
further advance under its secured short term loan with FBC Holdings
Sarl ("FBC") and its agent, Cyrus Capital Partners LP ("Cyrus") for
US$1,750,000. The advance will be made available in two tranches.
The first tranche of US$1.0 million will be drawn immediately. The
second tranche of US$750,000 will be available to draw from 8th
August 2012. The funds will be used for general working capital
purposes. The advance is interest free and must be repaid by 30th
November 2012.
The Company has also agreed to increase its management fee to
Cyrus as originally announced on 31st August 2010 from 5% of deemed
cash margin on sales to 6%. This change is in recognition of
additional strategic advisory services which are being provided by
Cyrus in relation to the funding of the Black Angel project.
Nick Hall, CEO of Angel Mining, commented: "The Company has made
excellent progress since production recommenced following the
failure of the main generator earlier this year. The additional
working capital being provided will make a significant impact on
our ability to achieve target production levels over the next few
months. I am very grateful for the fact that FBC and Cyrus continue
to provide us with vital support."
Enquiries:
Angel Mining plc
Nicholas Hall, Chief Executive
Officer 07931 709 053
Kevin McNair, Chief Financial
Officer 07900 690 908
Fox-Davies Capital (Broker)
Daniel Fox-Davies/Simon Leathers 0203 463 5000
Bishopsgate Communications Limited
Nick Rome/ Anna Michniewicz/ Ivana
Petkova 0207 562 3350
Background to Angel Mining
Nalunaq
The Company first poured gold at Nalunaq on 27th May 2011
following final completion of the processing plant and is targeting
optimal production during Q3 2012 of approximately 24,000 oz per
annum thereby providing the Company with cash flow which will be
dedicated to funding development at Black Angel, further
exploration at Nalunaq and reducing debt. The current mining plan
anticipates a mine life of two to five years, subject to further
exploration work. The directors anticipate that Nalunaq may enter
into toll treatment arrangements with other potential gold mining
activities in the region where appropriate. Angel Mining currently
operates the only operational gold mine in the region and
anticipates that its operation may be suitable for processing ore
from other gold mining companies in the region in the future.
Black Angel
The Black Angel project is a high grade zinc/lead project based
around a previously developed mine in the north of Greenland. The
table below sets out the JORC Code compliant mineral resources
estimate for the Black Angel project which includes three sets of
zones within the mine and three satellite deposits which have been
explored.
Summary of Black Angel Mineral Resources (JORC) as of 31 December
2007
================================================================================
Category Tonnage Zinc Lead Silver Mineable
(kt) (%) (%) (g/t) reserves
(kt)
================ ============= ========== ====== ===== ======= ===========
Angel Zone Indicated 791 13.0 4.5 25.0 218
================ ============= ========== ====== ===== ======= ===========
Cover Zone Indicated 522 8.3 2.4 18.0 231
================ ============= ========== ====== ===== ======= ===========
Other zones
within the
Black Angel
mine Indicated 697 10.4 3.3 13.0 -
================ ============= ========== ====== ===== ======= ===========
South Lakes
Glacier Indicated 1,726 6.9 2.5 14.5 -
================ ============= ========== ====== ===== ======= ===========
Ark Inferred 492 4.7 2.2 20.4 -
================ ============= ========== ====== ===== ======= ===========
Nunngarut 2 Indicated 196 9.0 3.4 31.0 -
================ ============= ========== ====== ===== ======= ===========
Nunngarut 2 Inferred 1 4.5 1.9 9.0 -
================ ============= ========== ====== ===== ======= ===========
Total 4,425 449
=============================== ========== ====== ===== ======= ===========
Source: Wardell Armstrong International Ltd.
================================================================================
The project consists of three phases:
Phase I: Complete the rehabilitation of infrastructure to allow
access to the mine, the mine camp and related facilities.
Phase II: Complete the detailed review of the pillar extraction
programme within the Angel and Cover Zones, including the
construction of the process plant and related systems to allow for
the shipment of concentrate from the site.
Phase III: Develop a further exploration programme for the
existing JORC resources at the Ark and Glacier deposits as well as
identified mineralisation at Deep Ice, Nunngarut and a number of
other exploration targets within the licence area (see the
announcements made by the Company on 6 June 2006 titled "Black
Angel 2006 Resource Statement" and on 30 November 2007 titled
"Black Angel 2007 Resource Statement").
Dr Bob Dowdell is the qualified person that has reviewed and
approved the technical information contained in this announcement.
Dr Dowdell holds a BSc and Doctorate in Mining Engineering from
Newcastle University and is a Chartered Engineer and Member of the
Institution of Mining and Metallurgy.
More information on the Company is available on the website,
please click here: http://www.angelmining.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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