Fundy Minerals

October 12, 2010 05:45 ET

Suspension and expected Cancellation

   FOR IMMEDIATE RELEASE                                                                    12 OCTOBER 2010
                                              FUNDY MINERALS LTD
                                          ("Fundy" or "the Company")
                                                 (PLUS: FUND)
                                     Suspension and expected Cancellation

Further  to the announcement made by the Company on 27 September 2010 with regard to its intention to  withdraw
its  securities  from  the PLUS market, the Company announces that the regulation team  at  PLUS  has  received
objections  from  certain  shareholders  and as a result the Company  would  ordinarily  be  required  to  seek
shareholder  approval for the withdrawal under Rule 82 of the PLUS Rules for Issuers ("Rules").  Unfortunately,
the  Company  does not have sufficient working capital to allocate towards a shareholder circular, convene  the
associated meetings, legal opinions, and will therefore be in breach of the Rules. As a result of the Company's
inability  to  comply  with  the Rules, Daniel Stewart & Company Plc has resigned as  the  Company's  Corporate
Adviser with immediate effect.

The  Company's  shares will be suspended from trading on PLUS and it is expected that trading in the  Company's
securities will be cancelled in due course.

Reasons for the withdrawal

The  Company was admitted to PLUS in 2005 with the expectation that this would provide the Company with  access
to  capital  and  facilitate  the  execution  of the Company's strategy;  namely  the  exploration  of  mineral
properties.  Subsequent to the admission, the Company has proceeded on several mineral exploration projects  in
accordance  with this strategy.  However, in recent times it has not proved possible for the Company  to  raise
further  funds  on PLUS. At this juncture, Fundy does not have the capital to continue meeting  the  burden  of
maintain a listing on PLUS.

The  Directors have been considering, for some time, the merits of maintaining the Company's securities on PLUS
and  have  concluded that the costs and administrative requirements outweigh the benefits. Consequently,  at  a
Board Meeting on 24 September 2010, the Directors unanimously agreed that the best strategy for the Company  is
to focus on and develop its existing business as a private company.

The  Directors strongly believe that for the reasons referred to above, withdrawing from trading on PLUS is  in
the best interests of the Company and its shareholders.

Alternative arrangements for dealing in Fundy's securities

Fundy  is  negotiating  with  J.  P. Jenkins as an alternative arrangement for the  dealing  in  the  Company's
securities following its withdrawal from PLUS.

As a result of the resignation of Daniel Stewart & Co. Plc, Fundy does not have a PLUS Corporate Advisor.

                   The Directors of the Company accept responsibility for this announcement.

For further information:
Fundy                                                            Tel: +44(0)207.669.4479
Jeff Michel

Contact Information

  • Fundy Minerals