London Mining made public on Monday that it has completed a “US$91 million institutional share placing” announced in January after the second tranche of shares was admitted to trading on the AIM market. London Mining announced on the 24th of January that 22,685,000 new ordinary shares in the Company “had been successfully placed” by J.P. Morgan Securities Ltd. Which it said conducts its UK investment banking activities as J.P. Morgan Cazenove and Liberum Capital Limited (together, the “Banks”) to “institutional and other investors at a placing price of 255p per share (the “Placing”).
The Placing it disclosed was in two tranches: a firm placing of 11,199,214 new ordinary shares (the “Firm Placing Shares”); and a conditional placing of 11,485,786 new ordinary shares (the “Conditional Placing Shares”).
London Mining has so far “issued” a total 22.6 million shares at a price of 255 pence per share including 11.2 million in a firm company placing and a further 11.5 million in a conditional placing Proactive Investors reported on Tuesday.
Following the admission of Firm Placing Shares (FPS) on London’s AIM in January, the second tranche of Conditional Placing Shares were admitted on Monday after “securing” shareholder approval.
The new funds will allow LM to increase the rate of iron ore production at its flagship Marampa mine in Sierra Leone and accelerate the expansion of the mine to reach five million tonnes per annum (Mtpa) by 2014 instead of the 4.6 Mtpa, previously targeted.
The acceleration drive will cover the expansion of the existing plant, develop a second processing plant and the enhancement of logistics required to ensure delivery of higher volumes of production. Bankable feasibility study (BFS) for a further expansion to an output rate of nine Mtpa, production at Marampa could reach 17 Mtpa.
“This increased production provides the operation with significant economies of scale, improving near term operating margins and secures the development of the infrastructure enhancements and support services required for a larger, longer life operation.” Proactive Investor said on Tuesday.
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