25th Aug 2009 15:45
AIM: FML
FRONTIER MINING LTD
("Frontier" or "the Company")
FRONTIER SECURES ADDITIONAL £5m FUNDING
Frontier Mining Ltd, the AIM listed gold and copper exploration and development company focused on Kazakhstan, announces that it has today entered into a £5,000,000 Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV LTD, which is advised by Yorkville Advisors LLC ("Yorkville"), an investment group headquartered in New Jersey and active across North America, Europe and the Asia Pacific region.
This agreement enables the Company, at its discretion and subject to certain conditions being met, to obtain funding from Yorkville at any time during the next 30 months by way of subscription for new shares in the Company.
Subscriptions will be priced at a discount to the market price at the time of subscription and will take place at timings and intervals and in sizes determined by the Company, subject to the agreed mechanisms specified under the SEDA. The SEDA offers Frontier a low risk, cost effective way of optimising its capital structure in pursuit of its growth strategy.
Erlan Sagadiev, CEO of Frontier Mining Ltd, commented: "Yorkville's commitment to FML is another positive step for Frontier as it strengthens the Company's financial security and flexibility, further enabling us to continue significant progress at our Naimanjal and Benkala projects. Having access to both credit and equity lines gives us the flexibility to draw our credit line to minimise dilution during periods of share price weakness or draw our equity line to minimise debt levels as our share price increases, thus optimising our capital structure."
Enquiries:
|
Frontier Mining Ltd |
Thomas Sinclair |
+44 (0)20 7898 9019 |
|
Libertas Capital |
Sandy Jamieson |
+44 (0)20 7569 9695 |
|
Walbrook PR |
Leah Kramer |
+44 (0)20 7933 8780 |
Notes to Editors:
About Frontier Mining Ltd:
Frontier Mining Ltd. is a mineral exploration and development Company that was incorporated in the state of Delaware, USA, on 5 August 1998 for the purpose of exploring and developing gold and copper deposits in the Republic of Kazakhstan. Through its subsidiaries and affiliates, Frontier locates, evaluates, acquires, explores and develops mineral properties
Frontier currently owns two licenses in Kazakhstan. They are the Naimanjal exploration and mining licence, held by FML Kazakhstan, and, 50% of U.S. Megatech BVI which holds the Benkala licence. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd. Frontier has one producing gold mine, Naimanjal; one pre-feasibility stage gold project, Koskuduk; and the recently acquired 50% interest in the Benkala copper mine.
Frontier also has a potential copper porphyry deposit with associated gold and molybdenum, Baitimir; and several copper/gold prospects along a 25-km trend including both VMS and porphyry types. Metallurgical tests on its Beschoku and Yubileiny copper projects confirm the oxide copper ore is amenable to extraction using low cost SX-EW technology.
Frontier owns a 50% interest in KazCopper LLP, the joint venture company that owns the Benkala copper-molybdenum-gold deposit located in north-western Kazakhstan within the Urals gold/copper ore belt. A Competent Persons Report ("CPR") on the Benkala project completed by Wardell Armstrong International ("WAI") in March 2007 estimates 47.75 Mt at an average grade of 0.36% Cu for the oxide mineralization, and 873.75 Mt at an average grade of 0.30% Cu for the sulphide mineralisation, representing some 2.8 million tonnes of contained copper, and at a 10% Discount Rate and a $1.5/lb Cu price, the Benkala Project has an NPV approaching $500M. A conceptual study team and advisory team have both been appointed to fast track the development of this project forward towards a pre- feasibility study, with a view to beginning production at the end of 2010.
Issued Share Capital
Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.
Frontier currently has 425,913,522 issued and 21,812,009 reserved and outstanding options giving 447,725,531 fully diluted ordinary shares. In addition, there are 407,540,430 Warrants outstanding pursuant to the funding agreement announced on 30 April 2009, of which 81,508,086 have been issued. A further 80 million new Shares are due to be issued in respect of arrangement fees for the funding agreement.
For further information please visit; www.frontiermining.com
About Yorkville Advisors and Yorkville Advisors UK
Yorkville Advisors UK, LLP (Yorkville UK) is the London-based sub-advisor to the New Jersey, US-based Yorkville Advisors, LLC (Yorkville), which is the investment manager to a family of funds with approximately USD 900 million assets under management.
Founded in January 2001 by Mark Angelo, Yorkville specialises in providing flexible, innovative debt and equity investments and financing in publicly listed companies worldwide in a variety of sectors including energy, mining, technology media & telecommunication (TMT), healthcare and shipping. Yorkville has a broad investment mandate and the flexibility to invest across many geographies as well as sectors.
Yorkville tailors its financings according to each company's need and offers a mix of debt structures, bridge financings, asset backed loans, equity facilities and, in some cases, equity injections.
Yorkville has offices in Jersey City, New Jersey; Jupiter, Florida; London and Hong Kong. It also has joint venture agreements in Italy, Greece, and Israel.
www.yorkvilleadvisors.com
Related Shares:
FML.L