SMA Sovereign Mne

TIDMSMA

RNS Number : 4601H

Sovereign Mines of Africa PLC

01 December 2015

1 December 2015

Sovereign Mines of Africa PLC

("SMA" or "the Company")

Suspension of discussions with potential partner

Future funding requirements

Further to the announcement made by the Company on 10 November 2015, the Company announces that it has taken the decision to suspend discussions with the potential partner with respect to the development of the Company's Mandiana project, as approval by the potential partner's board has not been forthcoming in a timely manner.

David Pearl, Chairman of SMA, said:

"We have been engaged in intensive and protracted negotiations with a substantial mining company. It is therefore very disappointing that no agreement has been signed and I would like to apologise to shareholders for the uncertainty that this has caused."

Future funding requirements

At the time of the release of the Company's interim results on 28 September 2015 the Board received a firm commitment from one of its directors to underwrite a limited capital raise, as well as indications of support from certain shareholders. This commitment and indications of support were made at a pricing level below the closing mid-market price of 0.175 pence on 28 September 2015, and significantly below the current market price.

A capital raise is expected to take place shortly, and in any event before 31 December 2015. However, shareholders should be aware that without a refinancing in the immediate term, the Company will not be able to continue in operation.

A further announcement will be made shortly regarding the capital raise.

Ends

Enquiries:

SOVEREIGN MINES OF AFRICA PLC

   David Pearl, F.C.A. - Chairman                                             +353 696 8961 

david.pearl@pearlcp.com

   Nathan Steinberg - Finance Director                                     +44 20 7269 7680 

SHORE CAPITAL - NOMINATED ADVISER & BROKER

Toby Gibbs/Bidhi Bhoma - Corporate Finance

   Jerry Keen - Corporate Broking                                              +44 20 7408 4090 

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCFMMFMNGKGKZM

(END) Dow Jones Newswires

December 01, 2015 02:00 ET (07:00 GMT)

Sovereign (LSE:SMA)
Historical Stock Chart
From Dec 2024 to Jan 2025

Sovereign (LSE:SMA)
Historical Stock Chart
From Jan 2024 to Jan 2025