28th Aug 2009 16:30
AIM: FML
FRONTIER MINING LTD
("Frontier" or "the Company")
ISSUE OF EQUITY
Frontier Mining Ltd, the AIM listed gold and copper exploration and development company focused on Kazakhstan, announces that it has today issued 1,038,203 new ordinary shares to Yorkville Advisors LLC ("Yorkville"), in part settlement of their fee under the Standby Equity Distribution Agreement ("SEDA") announced on 25 August 2009. The second half of the Yorkville fee will be paid upon first draw-down under the SEDA.
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 Thursday 3 September 2009.
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.
Following this issue of equity, Frontier will have 426, 951,725 issued and 21,812,009 reserved and outstanding options giving 448,763,734 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
Related Shares:
FML.L