Vane raises cash : News from McNeill.org.uk

Vane raises cash

24 November 2010
Vane raises cash

£665k raised in second round of recent fund-raising

VANE Minerals plc is pleased to announce that it has completed a placing of 29,555,550 new ordinary shares of 0.1 pence each (the "Placing Shares") in the Company at a price of 2.25p per share, raising £665,000 (before expenses) for the Company (the "Placing").

The net proceeds of the Placing, which has been arranged by Allenby Capital Limited, will be primarily used by the Company to:

  • bring on line the new projects acquired through the recently agreed joint venture with the Ruiz brother;
  • develop four high grade mines in the La Rastra district;
  • advance the new 200T/d mill planned for the La Rastra district; and
  • provide general working capital.

Additional funds will be used to fund the exploration of the Company's uranium and porphyry copper assets. The Placing Shares will represent 9.04% of the Company's enlarged issued ordinary share capital.

Steve Van Nort, CEO of VANE, commented; "I am delighted that there has been such strong demand from investors and we are subsequently able to announce a placing of £665,000. The additional financing will be used principally to enable us to increase the mining capabilities at our gold/silver production and exploration programme in Mexico."

The Placing has been carried out up to the limit of Company's current share authorities and application has been made for the Placing Shares, which will be issued paid up and rank pari passu with all existing ordinary shares, to be admitted to trading on AIM ("Admission"). It is expected that Admission will be effective on or around 30 November 2010.