4th May 2006 07:01
Allied Gold Limited04 May 2006 FOR IMMEDIATE RELEASE 4 May 2006 ALLIED GOLD LIMITED ALLIED PLACES US$10,000,000 INCLUDING PLACEMENT TO MAJOR INTERNATIONAL INSTITUTIONS Allied Gold Limited (AGLD), the emerging gold producer with gold and base metalexploration projects located in eastern Papua New Guinea Tabar Islands todayannounces the completion of the placement of 21,800,000 ordinary shares atA$0.60 per share to raise A$13,080,000 (approximately US$10,000,000) beforeexpenses. The placement has been made to international institutional clients of UK basedMirabaud Securities Limited. The placement has been made under the Company's 15%placement capacity in terms of ASX LR 7.1. and accordingly no shareholder orregulatory approvals are required under the ASX Rules. This placement brings the total raised in equity markets since December 2005 toA$64.8 million (approximately GBP27 million). Wayne Loxton, Allied Gold's Managing Director, commented: "The funds raised in the placement will be applied to enhancing development ofthe Simberi Oxide Gold Project into gold production in Q2 2007 as well asproviding additional funding for wider exploration in the Tabar Islands. Inparticular Allied Gold will investigate the outright purchase of key logisticalequipment such as a barge for transportation of heavy goods and equipment to andfrom the Tabar Islands and the mainland, and the purchase of one or more drillrigs. Such purchases of key items of equipment will not only provide operatingcost savings, but will enable the Company to schedule critical path logisticalmovements to suit its own planning, and to plan further ahead for explorationdrilling. "The company is continuing to broaden its international shareholder base whichprovides global recognition from the investment community for the Company andthe Tabar Islands assets .This placement demonstrates the continued investorsupport for the robust economics of the Simberi Oxide Gold Project together withthe significant exploration upside potential in a rising gold market." The new ordinary shares will when issued rank pari passu with the existingordinary shares in issue. Application will be made for the new ordinary sharesto be admitted to trading on the ASX and AIM, and trading in such shares isexpected to become effective on 11 May 2006. The placing is subject tosettlement and admission of the new ordinary shares to trading on the ASX andAIM. For more information:+-----------------------------------+-----------------------------------+|Wayne Loxton |T:+61 8 93533638 ||Managing Director | || | |+-----------------------------------+-----------------------------------+|Abigail Singleton / Leesa Peters |T: +44 (0) 20 7429 6606 ||Conduit PR - FPR |M: +44 (0) 77 39461061 || |Emails: [email protected] || |[email protected] |+-----------------------------------+-----------------------------------+|Roland Cornish |T: +44 (0) 20 7628 3396 ||Beamont Cornish - Nomad | |+-----------------------------------+-----------------------------------+ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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