TIDMANGM

RNS Number : 4111K

Angel Mining PLC

21 August 2012

21 August 2012

ANGEL MINING PLC

("Angel Mining" or the "Company", AIM: ANGM)

Issue of Shares

The board of Angel Mining plc announces that it has raised GBP258,000 through the issue of 25,800,000 new ordinary shares of 1p each in the Company ("Ordinary Shares") to YA Global masters SPV Ltd. at 1p per share, under the terms of the Standby Equity Distribution Agreement ("SEDA") announced on 28 July 2011. The proceeds will be used to reduce the Company's repayment obligations under the promissory note facility with Yorkville which was announced at the same time as the SEDA. The promissory note liability of US$3,654,000 has now been reduced to US$1,407,127.

Application has been made for the 25,800,000 new Ordinary Shares to be admitted to trading on AIM ("Admission"). It is expected that admission will become effective and that dealings will commence on Thursday, 23 August 2012.

Enquiries:

 
 Angel Mining plc 
  Nicholas Hall, Chief Executive 
   Officer                              07931 709 053 
  Kevin McNair, Chief Financial 
   Officer                               07900 690 908 
 Fox-Davies Capital (Broker) 
  Daniel Fox-Davies/Simon Leathers       0203 463 5000 
 
 Bishopsgate Communications Limited 
  Nick Rome                              0207 562 3350

Background to Angel Mining

Nalunaq

The Company first poured gold at Nalunaq on 27th May 2011 following final completion of the processing plant and is targeting optimal production during Q3 2012 of approximately 24,000 oz per annum thereby providing the Company with cash flow which will be dedicated to funding development at Black Angel, further exploration at Nalunaq and reducing debt. The current mining plan anticipates a mine life of two to five years, subject to further exploration work. The directors anticipate that Nalunaq may enter into toll treatment arrangements with other potential gold mining activities in the region where appropriate. Angel Mining currently operates the only operational gold mine in the region and anticipates that its operation may be suitable for processing ore from other gold mining companies in the region in the future.

Black Angel

The Black Angel project is a high grade zinc/lead project based around a previously developed mine in the north of Greenland. The table below sets out the JORC Code compliant mineral resources estimate for the Black Angel project which includes three sets of zones within the mine and three satellite deposits which have been explored.

 
        Summary of Black Angel Mineral Resources (JORC) as of 31 December 
                                       2007 
================================================================================ 
                     Category      Tonnage    Zinc    Lead   Silver    Mineable 
                                     (kt)      (%)     (%)    (g/t)    reserves 
                                                                         (kt) 
================  =============  ==========  ======  =====  =======  =========== 
 Angel Zone        Indicated            791    13.0    4.5     25.0          218 
================  =============  ==========  ======  =====  =======  =========== 
 Cover Zone        Indicated            522     8.3    2.4     18.0          231 
================  =============  ==========  ======  =====  =======  =========== 
 Other zones 
  within the 
  Black Angel 
  mine             Indicated            697    10.4    3.3     13.0            - 
================  =============  ==========  ======  =====  =======  =========== 
 South Lakes 
  Glacier          Indicated          1,726     6.9    2.5     14.5            - 
================  =============  ==========  ======  =====  =======  =========== 
 Ark               Inferred             492     4.7    2.2     20.4            - 
================  =============  ==========  ======  =====  =======  =========== 
 Nunngarut 2       Indicated            196     9.0    3.4     31.0            - 
================  =============  ==========  ======  =====  =======  =========== 
 Nunngarut 2       Inferred               1     4.5    1.9      9.0            - 
================  =============  ==========  ======  =====  =======  =========== 
 Total                                4,425                                  449 
===============================  ==========  ======  =====  =======  =========== 
 Source: Wardell Armstrong International Ltd. 
================================================================================

The project consists of three phases:

Phase I: Complete the rehabilitation of infrastructure to allow access to the mine, the mine camp and related facilities.

Phase II: Complete the detailed review of the pillar extraction programme within the Angel and Cover Zones, including the construction of the process plant and related systems to allow for the shipment of concentrate from the site.

Phase III: Develop a further exploration programme for the existing JORC resources at the Ark and Glacier deposits as well as identified mineralisation at Deep Ice, Nunngarut and a number of other exploration targets within the licence area (see the announcements made by the Company on 6 June 2006 titled "Black Angel 2006 Resource Statement" and on 30 November 2007 titled "Black Angel 2007 Resource Statement").

Dr Bob Dowdell is the qualified person that has reviewed and approved the technical information contained in this announcement. Dr Dowdell holds a BSc and Doctorate in Mining Engineering from Newcastle University and is a Chartered Engineer and Member of the Institution of Mining and Metallurgy.

More information on the Company is available on the website, please click here: http://www.angelmining.com/

This information is provided by RNS

The company news service from the London Stock Exchange

END

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