GGG Resources plc

GGG Resources plc

November 11, 2010 02:04 ET

GGG Resources plc: Placing of New Ordinary Shares to Raise GBP 7.5 Million

LONDON, UNITED KINGDOM--(Marketwire - Nov. 11, 2010) - GGG Resources plc ("GGG" or the "Company") (LSE:GGG) is pleased to announce that it has conditionally placed 63,829,781 new ordinary shares (the "Placing Shares") at a price of 11.75 pence per share to raise gross proceeds of £7.5 million (the "Placing"). 

The Company has a 50% interest in the Bullabulling project, a former open pit gold mine located in Western Australia currently with an inferred gold resource of 1.98m ounces. The net proceeds of the Placing will enable the Company to continue to progress Bullabulling towards production, targeted for the first quarter of 2013; to strengthen the Company's balance sheet; and to fund future exploration drilling outside of the 2km mining feasibility study area.

The Placing Shares will rank pari passu in all respects with the Company's existing ordinary shares in issue. The Placing has been conditionally placed with institutional and other investors by Collins Stewart Europe Limited. Application has been made to London Stock Exchange plc for the Placing Shares to be admitted to trading on AIM ("Admission"), with Admission expected to occur on 16th November 2010. Following Admission, the total number of shares in issue will be 290,847,781.

Peter Ruxton, Chairman, comments:

"We are delighted with the interest shown in the Placing, which was oversubscribed, and has resulted in us adding an impressive list of new institutional shareholders to the register. The fund raising puts the Company on a firm financial footing as it looks to take Bullabulling through to anticipated gold production in early 2013."

Collins Stewart Europe Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as placing agent to GGG Resources PLC and is acting for no-one else in connection with the Placing and will not be responsible to anyone other than GGG Resources PLC for providing the protections afforded to clients of Collins Stewart Europe Limited nor for providing advice in connection with the Placing or any other matter referred to herein.

Contact Information

  • Dr. Jeffrey Malaihollo
    01992 531820
    Westhouse Securities Limited (Nominated Adviser)
    Tim Metcalfe / Martin Davison
    020 7601 6100
    Gresham PR
    Neil Boom
    07866 805 108
    Collins Stewart Europe Limited (Broker)
    John Prior / Adam Miller
    020 7523 8350