18th Sep 2009 16:30
FRONTIER MINING LTD
("Frontier" or "the Company")
ISSUE OF EQUITY
NOTIFICATION OF TRANSACTIONS OF DIRECTORS, PERSONS DISCHARGING MANAGERIAL RESPONSIBILITY (PDMR) OR CONNECTED PERSONS
SEDA Facility
Frontier Mining Ltd (AIM: FML), the AIM listed gold and copper exploration and Development Company focused on Kazakhstan, announces that following the first draw down of £120,000 under the £5 million Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd ("YA"), as announced on 25 August 2009, the Company has allotted 1,805,856 ordinary shares of US$0.01 each ("Shares") in the Company to YA at a price of 6.65 pence per share. This price is calculated by a formula based on the prevailing market price and specified under the terms of the SEDA.
In addition, Frontier announces the issue of a further 1,038,208 shares to Yorkville Advisors LLC ("Yorkville"), which represents the remaining 50% of the total agreed fee payable to Yorkville under the terms of the SEDA as announced on 28 August.
Directors Interests
Pursuant to the financing agreement announced on 30th April 2009, the Company has today issued the final 80,000,000 Shares of US$0.01 each in the Company and 326,032,344 warrants due under the terms of the agreement to River House Consultants Ltd, a company that is controlled by Mr Erlan Sagadiev, the CEO of Frontier. The warrants entitle the holder to subscribe for new Shares at an exercise price of 1.5p per Share.
Following this transaction, Mr. Sagadiev has an interest in 97,500,000 Shares in the Company, representing 19.1% of the issued share capital of the Company, and 372,540,430 Warrants
Application has been made for the admission of the new ordinary shares to trade on the AIM market. The new ordinary shares will rank pari passu with the existing ordinary shares of US$0.01 each in the Company and dealings in these new ordinary shares are expected to commence on or around Friday 25 September 2009.
Enquiries:
|
Frontier Mining Ltd |
Thomas Sinclair |
+44 (0)20 7898 9019 |
|
Libertas Capital |
Sandy Jamieson |
+44 (0)20 7569 9695 |
|
Walbrook PR |
Louise Goodeve / 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.
Following the issue of the new Shares, Frontier will have 509,795,789 issued and 21,812,009 reserved and outstanding options giving 531,607,798 fully diluted ordinary shares. In addition, there are 407,540,430 Warrants issued and outstanding pursuant to the financing agreement announced on 30 April 2009.
For further information please visit; www.frontiermining.com
Related Shares:
FML.L