19th Dec 2006 16:29
The information contained herein is restricted and is not for publication, release or distribution in or into Australia, Canada, Japan, South Africa or the United States.
For immediate release 19 December 2006
Gemfields Resources plc ("Gemfields" or "the Company") Result of Cash Placing (the "Placing")
Gemfields announces that a total of 8,000,000 new ordinary shares of 1 pence each in the capital of the Company (the "Placing Shares") have been conditionally placed by Canaccord Adams Limited at a price of 40 pence per Placing Share, raising ‚£3,200,000, before expenses to provide funds for the development of the Kariba Amethyst Mine and the Jagoda Pink Tourmaline Mine.
The Placing Shares will be issued credited as fully paid and will rank pari passu in all respects with Gemfields' existing ordinary shares, including the right to receive all future dividends and other distributions declared, made or paid after the date of the issue of the Placing Shares.
Application has been made for, and the Placing is conditional on, inter alia, admission of the Placing Shares to trading on AIM ("Admission"). It is expected that settlement will occur and Admission will become effective and dealings in the Placing Shares will commence at 8.00am on 21 December 2006.
Commenting on the successful placing, Peter Kitchen, Chief Executive Officer of Gemfields, said, "The proceeds of this share placing will help the Company to make further progress towards its objective of creating a portfolio of producing coloured gemstone assets".
Further to the placing, the Company also announces a brief update on various operational points:
* The washing plant purchased for the Mbuva-Chibolele mine, announced on 4 May 2006, has been installed although it is not expected to be fully commissioned until March 2007; * As stated in the Company's admission document dated 23 November 2005, the planned improved security features at Mbuva-Chibolele have been implemented; * The Company announces that a privatisation agreement to purchase a further 26% of the Kariba Amethyst Mine from the Zambian government is expected to be signed by March 2007; * The Kariba Amethyst Mine has handled approximately 200,000 tonnes of rock over the past year at a stripping ratio of 24:1 and a yield per tonne of ore of over 75,000 carats. Management believes that production can be increased significantly.
Enquiries:
Gemfields Tel: 020 7016 9416
Peter Kitchen
Richard James
Canaccord Adams Limited Tel: 020 7050 6500
Mike JonesRobin BirchallTyler Broda
Conduit PR Ltd Tel: 020 7429 6605
Leesa Peters
Laurence Read
This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any ordinary shares in the capital of the Company. Persons needing advice should consult an independent financial adviser who specialises in advising in connection with shares and other securities.
Canaccord, which is regulated in the United Kingdom by the Financial Services Authority, is acting solely for the Company and nobody else in connection with Admission and the Placing and will not be responsible to any person other than the Company for providing the protections afforded to its customers or for providing advice in relation to the Placing. No representation or warranty, express or implied, is made by Canaccord as to the contents of this announcement and without limiting the statutory rights of any person to whom this announcement is issued, no liability whatsoever is accepted by Canaccord for the accuracy of any information or opinions contained in this announcement or for the omission of any material information, for which the Directors of the Company are solely responsible.
GEMFIELDS RESOURCES PLCRelated Shares:
Gemfields Grou.