6th May 2005 07:00
Highland Gold Mining Limited06 May 2005 6 May 2005 Barrick Subscription in Highland Gold Highland Gold Mining Limited ("Highland Gold") announces that it has todaysigned a subscription agreement with Barrick Gold Corporation ("Barrick") ofCanada whereby Barrick will subscribe in cash for 11,377,937 new ordinary sharesin Highland Gold at a price of 230 pence per new ordinary share. Thesubscription is conditional only on admission of the shares to trading on AIM.Following completion of the share subscription Barrick's shareholding, which iscurrently 13.7%, will increase to 20%. The proceeds of approximately US$50 million will be used to reduce short termdebt and to help fund Highland Gold's capital expenditure and developmentprogramme. As part of these arrangements Barrick has also agreed to provideHighland Gold with operational and financial management assistance at HighlandGold's existing operations, in addition to its commitment to joint explorationand its participation in Taseevskoye with Highland Gold. On 18 April 2005, Alex Davidson(1)joined the Board of Highland Gold asBarrick's nominated director under the terms of the parties' existingarrangements. The Board of Highland Gold welcomes this, together with theirincreased investment in and closer working relationship with Highland Gold, as ademonstration of Barrick's commitment to Highland Gold and is consistent withBarrick's long term strategic commitment to Russia. Following completion of the feasibility study at Mayskoye, which is due to bedelivered shortly, Highland Gold and Barrick will discuss possible participationarrangements in connection with the development of the deposit. Application has been made to the London Stock Exchange for the new shares to beadmitted to trading on the AIM market and admission is expected to be effectiveon 11 May 2005. As Barrick's shareholding is in excess of 10% Barrick is treated as a relatedparty under the AIM rules. The Directors of Highland Gold consider, havingconsulted with JPMorgan Cazenove, the Nominated Adviser, that the terms of thesubscription by Barrick are fair and reasonable in so far as shareholders inHighland Gold are concerned. Enquiries: +44 (0) 20 7404 5959Highland Gold James Cross, Chairman Dmitry Korobov, Managing Director Denis Alexandrov, Finance Director Dmitry Yakushkin, Director of Communications Grant Sinitsin, Director of Investor Relations Brunswick Andrew Garfield, Mark Antelme 1. There are no details that require to be disclosed under Schedule 2 para f (iii) to (viii) of the AIM Rules. Highland Gold Mining Limited trades under the ticker, HGM.L www.highlandgold.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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