Oriel Resources plc
TSX : ORL
AIM : ORI

Oriel Resources plc

June 08, 2007 12:07 ET

Oriel Resources Confirms the Completion of Pounds Sterling 48,800,000 Private Placement

LONDON, UNITED KINGDOM--(Marketwire - June 8, 2007) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN THE UK AND IN CANADA ONLY AND IS NOT INTENDED FOR PUBLICATION, RELEASE OR DISTRIBUTION IN OR INTO AUSTRALIA, JAPAN, SOUTH AFRICA, THE RUSSIAN FEDERATION, OR THE UNITED STATES OF AMERICA.

Oriel Resources plc, (TSX:ORL)(AIM:ORI)("Oriel", or the "Company") the London-based chrome and nickel mining and processing company, announces the completion of a private placement to raise Pounds Sterling 48,800,000 (approximately C$104 million).

80,000,000 ordinary shares at a price of 61p (approximately C$1.30) per share have been issued to qualified investors in the United Kingdom, Canada and certain other jurisdictions, under applicable regulations (the "Private Placement").

Pursuant to the Private Placement, Eanermoon Limited, an existing shareholder of the Company holding 56,300,292 ordinary shares (approximately 10.12 % of the current issued share capital of the Company), has agreed to subscribe in cash for an additional 56,000,000 ordinary shares. Immediately following completion of the Private Placement, Eanermoon Limited will hold approximately 112,300,292 ordinary shares or 17.7% of the enlarged issued share capital of the Company. Following completion of the Private Placement, the issued share capital of the Company will be 636,211,821 ordinary shares.

Eanermoon Limited is a subsidiary of PPF Investments Limited, a Jersey holding company of a private equity group established in 2005 which is connected with Mr Petr Kellner. PPF Investments Limited and its subsidiaries manage two investment companies which have investments in certain assets in China, Central and Eastern Europe and Russia.

The Directors consider, having consulted with Canaccord Adams Limited, the Company's nominated adviser, that the terms of the transaction with Eanermoon Limited are fair and reasonable in so far as the Company's shareholders are concerned.

The closing of the Private Placement will be conditional, inter alia, on admission of the new ordinary shares to trading on the AIM market of the London Stock Exchange ("AIM"). The Toronto Stock Exchange ("TSX") has conditionally approved the listing of the new ordinary shares, subject to the Company fulfilling all of the requirements of the TSX within two business days of closing, and in any event, no later than 13 July 2007. It is expected that dealings in the ordinary shares will commence on AIM at 8 a.m. (UK time) on Monday 11 June 2007 and trading in the ordinary shares will commence on the TSX following receipt by the TSX of all necessary documentation in connection with the Private Placement, subject to applicable hold periods under Canadian securities laws.

Dr Sergey V Kurzin, Executive Chairman of Oriel commented:

"The Company intends to use the net proceeds as general working capital and for assessment, evaluation and engineering works for additional FeCr production and further progressing of the Shevchenko project."

Canaccord Adams Limited has been appointed as its sole Agent and Bookrunner in connection with the Private Placement.

Notes to Editors:

Oriel Resources was formed in July 2003 with Dr Sergey V. Kurzin as Executive Chairman and CEO and is a London-based chrome and nickel mining and processing company with its Ordinary Shares and Warrants admitted to trading on the Alternative Investment Market (AIM) and its Ordinary Shares listed on the TSX Stock Exchange.

Its primary focus is on the identification, acquisition, exploration and development of advanced chrome, nickel, and other alloying opportunities in the countries of the FSU, including The Republic of Kazakhstan and The Russian Federation. The Oriel group currently has three projects, namely the Tikhvin smelter project, Russia, the Voskhod chrome project and the Shevchenko nickel project, both situated in north-western Kazakhstan. Following the results of recent feasibility studies for the Russia and Kazakh-based projects and given the current high demand for chrome and nickel products, the directors are fast-tracking the Voskhod chrome and Tikhvin smelter projects into production while further developing the Shevchenko nickel project.

This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any ordinary shares of the Company (the "Oriel Securities"). The distribution of this announcement and the offering or sale of the Oriel Securities in certain jurisdictions may be restricted by law.

This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or subscribe for ordinary shares in the capital of the Company in Australia, Canada, Japan, South Africa, the United States or in any jurisdiction in which such offer or solicitation is unlawful and the information contained herein is not for publication or distribution, directly or indirectly, in or into Australia, Canada, Japan, South Africa, the United States or any jurisdiction in which such publication or distribution is unlawful.

No action has been taken by the Company or Canaccord that would permit an offering of such securities or possession or distribution of this announcement or any other offering or publicity material relating to such securities in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required by the Company and Canaccord to inform themselves about and to observe any such restrictions.

This announcement is not for publication or distribution, directly or indirectly, in or into the United States. This announcement is for information only and does not constitute an offer or invitation to acquire or dispose of Oriel Securities in the United States. The Oriel Securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, (the "Securities Act") and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There will be no public offer of Oriel Securities in the United States, the United Kingdom or elsewhere.

Persons into whose possession this announcement comes are required by the Company and Canaccord to inform themselves about and to observe any such restrictions.

No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Canaccord or by any of its affiliates or agents as to or in relation to, the accuracy or completeness of this announcement, or any other written or oral information made available to or publicly available to any interested party or its advisers and any liability therefore is hereby expressly disclaimed.

Canaccord, which is authorised and regulated by the FSA, is acting for Oriel in connection with the Private Placement and no one else and will not be responsible to anyone other than Oriel for providing the protections afforded to clients of Canaccord nor for providing advice in relation to the Private Placement.

The TSX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Oriel Resources plc
    Dr. Sergey V Kurzin
    Executive Chairman
    +44 (0) 20 7514 0590
    or
    Oriel Resources plc
    Nick Clarke
    Managing Director
    +44 (0) 20 7514 0590
    or
    Oriel Resources plc
    Gavin Dallas
    Marketing and PR
    +44 (0) 20 7514 0590
    Website: www.orielresources.com
    or
    Bankside Consultants
    Michael Padley / Michael Spriggs
    +44 (0) 20 7367 8888
    or
    Vanguard Shareholder Solutions
    Keith Schaefer
    (604) 608-0824
    or
    Canaccord Adams Limited
    Robin Birchall / Ryan Gaffney
    +44 (0) 20 7050 6500