16th Dec 2005 10:29
Pan Pacific Aggregates PLC16 December 2005 16 December 2005 PAN PACIFIC AGGREGATES PLC PLACING AND ADMISSION TO AIM LONDON: 16 December 2005 - Pan Pacific Aggregates plc ("PPA" or "the Company")has raised £2.54 million before expenses, through the Placing of 3,175,000 newOrdinary Shares at £0.80 per share giving the Company a market capitalisation atthe placing price of £50.85 million. The shares will begin trading on AIM today(16 December 2005). Insinger de Beaufort is the Nominated Advisor and Brokerwith VSA Resources Limited acting as joint Broker to the Placing. The proceeds of the Placing will be used to fund working capital requirements ofthe Company based on stage 1 of the development and mining plan whichincorporates further resource definition, a bankable feasibility study for theNorthern Project and Large Producer permit applications. Company Directorsbelieve PPA's future growth potential will be enhanced by an AIM flotation whichis hoped to generate increased visibility and credibility for the Company withthe possibility of accessing further capital in the future. Pan Pacific Aggregates was established to consolidate the mineral claims over aland package of approximately 72,300 acres situated on the Sechelt Peninsula,British Columbia, Canada and to develop these claims in order to produceindustrial minerals and construction aggregates with the aim of serving localand global markets. The world class deposit of approximately 750 million tonnesof potentially quarry extractable resource, which the Directors believe willincrease with further exploration work, is located on tidewater and comprisesconstruction aggregates and industrial minerals. The Sechelt Claims are dividedinto the Southern Project, containing black gabbro, limestone, wollastonite andindustrial garnet and the Northern Project, chiefly containing carbonates. TheDirectors believe that several of these rock types represent the only knowndeposits of their kind along the western seaboard of North America. Samples ofcertain of these minerals have indicated high quality. In July 2005, the Group commenced small scale production of aggregates withinthe Southern Project and initial sampling and local orders have been shipped. Inaccordance with the Group's existing permits, the Group intends to re-commencesmall scale production of gabbro at the Southern Project in late 2006 to servelocal markets. In order to expand production, the Group has commenced thebiophysical baseline studies required in order to apply for Large Producerstatus which, when obtained, will allow for production of up to 6 million tonnesfrom the Southern Project. The Group has already commenced the EnvironmentalAssessment Process necessary for a Large Producer Permit for the NorthernProject. When obtained, this will also allow for annual production of up to 6million tonnes. MINERAL TARGETS AND RESOURCE INDICATED RESOURCE AREA MILLION TONNESTotal carbonate rock Northern Project 76.1 POTENTIAL QUARRY EXTRACTABLE AREA MILLION TONNESRESOURCECarbonates Northern Project 36.5Gabbro Northern project 1.4Gabbro Southern Project 713.0 TOTAL 750.9 Mining operations are to be developed in two stages, as follows: Stage 1 • Drilling to develop and increase resource• Application for Large Producer mining permits• Customer development• Bankable feasibility studies• Expansion of small scale production within existing Permits• Temporary barge load out facilities Stage 2 • Large scale production of up to 6 million tpa• Develop potential for Panamax loading facility PPA's business and sales strategy is focussed on developing strategic allianceswith large volume consumers of construction aggregates and high performanceindustrial minerals to form long term supply relationships. Discussions havetaken place with potential customers in San Francisco who have confirmed agrowing demand and potential supply shortage for construction materials. Enquiries to: Don Nicholson, Chairman and CEO 001 604 637-7581 William Voaden, Non-Executive Director 020 7628 3989 Louis Castro/Alex Collins, Insinger de Beaufort 020 7190 7000 Simon Rothschild, Bankside Consultants 020 7367 8871/07703 167 065 BACKGROUND INFORMATION DIRECTORS AND MANAGEMENT DONALD NICHOLSON, Chairman and CEO Mr. Nicholson, a professional engineer, is an experienced business executive,having managed natural resource projects, including environmental and permittingissues. He has held various management and directorship positions at variouscompanies, including several successful junior mining and exploration companies. ALAN WHITEHEAD, President and COO Mr. Whtehead has an extensive career comprising senior roles in various chemicalcompanies, including developing new business opportunities for Tenneco Inc, andPresident and CEO of Raisio Chemicals Americas. JAMES LADNER, Corporate Secretary Mr. Ladner is a Swiss investment banker and economist, experienced in thenatural resources sector. He is the former EVP of Coutts and Co in Switzerland,and a former member of the Swiss National Bank Capital Markets Commission. He iscurrently a director of several public companies with international operations. WILLIAM VOADEN, Non-Executive Director Mr. Voaden is the Managing Director of VSA Resources. He has many years'experience in the Mineral and Waste Management industries and has excellentindustry connections. He has expertise in Mergers and Acquisitions and goodcontacts with key Financial Institutions in both the UK and Europe. DR ANTON SCHRAFL, Non-Executive Director Dr. Schrafl has over 40 years' experience working with Holcim Ltd. He heldvarious positions with that company, including Deputy Chairman of the Board ofDirectors. He is also a board member of various privately held companies. BOB HASELL, Non-Executive Director Mr. Hasell is the CEO of Emil Anderson Construction, and has worked for thecompany for 43 years. During this time he has been involved in all aspects ofthe construction industry, including open pit mining operations, as well as manylarge industrial site projects. He is a former Director and President of theB.C. Roadbuilders and Heavy Construction Association. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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