Expiry of bank mandate
01 March 2010 - 6:00PM
UK Regulatory
TIDMAR.
RNS Number : 7394H
Archipelago Resources PLC
01 March 2010
ANNOUNCEMENT
ARCHIPELAGO RESOURCES PLC
EXPIRY
of
BANK MANDATE
following
EQUITY RAISING
for
TOKA TINDUNG GOLD PROJECT
Archipelago Resources Plc ("Archipelago" or "the Company") advises that the
mandate entered into with a group of prospective loan providers as announced on
5th January 2010, expired on 28th February thereby releasing the Company from
any obligations to proceed with the proposed facility including hedging by way
of the purchase of expensive put options.
On 26th February 2010 the Company announced the completion of a successful
placing to shareholders and institutional investors, raising equity funding of
GBP30m towards the cost of construction of the Company's 85% owned Toka Tindung
Gold Project in North Sulawesi, Indonesia, together with plans for raising the
balance of the construction costs in due course.
The Company remains debt free and as a result of the equity raising is in a
strong position going forward.
The Toka Tindung Gold Project has a resource of 1.75M ozs of gold equivalent, of
which at least 1.1M ozs will initially be mineable by open pit. When in
operation, the Project will produce at an average annualised production rate of
160,000 ounces of gold equivalent per annum for at least 6 years together with
an additional 2 years processing lower grade stockpiles. The Company's pits are
currently designed at a very conservative US$600/oz gold price and as a result
the Company is confident that with further exploration and sustained gold prices
it will be able to substantially extend the life of the Project.
Archipelago is a mining company listed on the AIM market of the London Stock
Exchange. The Company's principal activities are gold mining and exploration in
Indonesia (as 85% owner of the Toka Tindung Gold Project in Sulawesi), Vietnam
(as majority party in the Pac Lang and Cam Thuy/Ba Thuoc joint ventures with
VINACOMIN a Vietnamese Government mining company) and the Philippines (as option
holder over a 100% interest in the Corplex tenements).
Further Info: Colin Loosemore, Managing Director, Archipelago Resources
Plc.
Tel: 00-618-9364-8301
Shaun Whyte / Richard Swindells, Ambrian
Partners Ltd
Tel: 020-7634-4700
Ron Marshman / John Greenhalgh, Lothbury
Financial
Tel: 020-7011-9411
Gerry Beaney / Fiona Kindness, Grant Thornton
Corporate Finance
Tel: 020 7383 5100
www.archipelagoresources.com.au
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCKKADPCBKKOBB
Archipelago Resources (LSE:AR.)
Historical Stock Chart
From Jun 2024 to Jul 2024
Archipelago Resources (LSE:AR.)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Archipelago Res (London Stock Exchange): 0 recent articles
More Archipelago Resources News Articles