11th Apr 2007 13:49
Centamin Egypt Limited11 April 2007 Centamin Egypt Limited ("the Company") Closing of Second Tranche Centamin Egypt Limited ("Centamin" or the "Company") (TSX:CEE, AIM:CEY, ASX:CNT)is pleased to announce that it has successfully closed the second tranche (the"Second Tranche") of the previously announced offering of ordinary shares (the"Ordinary Shares"). The Second Tranche consisted of 88,593,578 Ordinary Sharespriced at C$0.86 for gross proceeds of C$76,190,477. Together with the firsttranche of 75,028,620 Ordinary Shares (the "First Tranche"), also priced atC$0.86 per share, which closed on April 5, 2007, the total offering (the"Offering") consisted of 163,622,198 Ordinary Shares for total proceeds ofC$140,715,090. Based on the Bank of Canada noon exchange rate on the day ofpricing, this implies pricing of approximately 38p or A$0.94, and gross proceedsof approximately GBP 62,382,599 or A$153,602,325. The Second Tranche closedfollowing the approval by shareholders of the Company, at a meeting ofshareholders held on April 10, 2007, of the issuance of 100 million shares underthe Offering. Westwind Partners Inc. acted as sole agent (the "Agent") for the Offering.Westwind Partners (UK) Limited, an affiliate of the Agent, acted as financialadviser to the Company. In addition, the Agent has been granted anover-allotment option to purchase up to an aggregate of 12,271,665 additionalordinary shares at C$0.86 per share, exercisable as to 5,627,147 ordinary sharesfor 30 days from the closing of the First Tranche and exercisable as to6,644,518 ordinary shares for 15 days from the closing of the Second Tranche. A prospectus dated March 23, 2007 was filed with and receipted in all provincesin Canada, except Quebec. The proceeds from the Offering are to be used for partial funding of thedevelopment of the Sukari project, drilling to test for extensions to resourcesat the Sukari project, regional exploration programs, working capital, generalcorporate purposes, and expenses of the Offering. As a result of this raising,the Company has now secured the equity component of the project finance requiredto bring the Sukari project to production. The remaining capital required tofund the development of the Sukari project is expected to be raised through thecompletion of a project finance facility, the process of securing such facilityis currently underway. The board of directors of the Company are extremely pleased with the stronginterest shown in this capital raising by both existing shareholders and newinvestors, and are looking forward to developing Egypt's first modern gold minefollowing this successful funding milestone. Exploration is ongoing with 10 rigson site continuing to build on the Company's already substantial resource andreserve base. For more information please contact: Centamin Egypt LimitedPh: + 61 (8) 9316 2640Josef El-Raghywww.centamin.com Bishopsgate Communications Ltd+ 44 (0) 20 7562 3350Maxine Barnes / Nick Romewww.bishopsgatecommunications.com Evolution Securities+ 44 (0) 20 7071 4300Frank Moxon / Simon Leatherswww.evosecurities.com April 11, 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Centamin PLC