16th Oct 2009 07:00
Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining
16 October 2009
Beacon Hill Resources plc ('Beacon Hill' or 'the Company')
Placing to Raise £725,000
Beacon Hill Resources plc, the AIM listed resource company, announces that it has conditionally raised £725,000 (before expenses) by way of a placing of 290,000,000 new ordinary shares of the Company ('the Placing Shares'), with new and existing shareholders at a price of 0.25 pence per Placing Share ('the Placing Price') ('the Placing'). The funds raised will be used, together with the £1 million raised in conjunction with the recent acquisition of Tasmanian Magnesite NL ('Tasmanian Magnesite') ('the Acquisition'), to develop the Company's significant magnesite assets in North West Tasmania.
Beacon Hill Chairman Justin Lewis said, "This fund raising, together with the £1 million raised as part of the Acquisition, will provide the Company with additional funds to advance our defined development plan at Tasmanian Magnesite, with the aim of achieving production in the next 24 months. This development will include additional exploration and drilling to upgrade the current 39Mt magnesite resource, of which 13Mt is measured to JORC standard, and fund mine design and begin construction of the mine which we anticipate to commence in the latter half of 2010."
The Placing Shares will represent 4.9% of the enlarged issued share capital, which will then comprise 5,923,000,000 ordinary shares of 0.1p each.
The Placing is inter alia conditional on admission of the Placing Shares being admitted trading on AIM ('Admission'). It is expected that Admission will occur, and dealings in the Placing Shares will commence on Friday 23 October 2009.
The Placing Shares will, when issued, rank pari passu in all respects with the existing issued shares of Beacon Hill, including the right to receive any dividends and other distributions declared following Admission.
**ENDS**
For further information on the Company, visit: www.bhrplc.com or contact:
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Justin Lewis
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Chairman, Beacon Hill Resources Plc
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+61 (0) 3 8637 1540
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William Vandyk
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Astaire Securities Plc
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+44 (0) 20 7448 4400
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Hugo de Salis
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St Brides Media & Finance Ltd
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+44 (0) 20 7236 1177
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Susie Callear
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St Brides Media & Finance Ltd
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+44 (0) 20 7236 1177
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