Patagonia Gold Announces Raising of Additional £1 million ($1.6
million) Through Placement of Ordinary Shares
TORONTO,
Nov. 27, 2012 /CNW/ - Patagonia
Gold (AIM: PGD), (TSX: PAT) ("Patagonia Gold" or "the Company")
is pleased to announce that further to the announcement on
October 25, 2012 it has raised,
through Mirabaud Securities LLP, additional gross proceeds of
approximately £1 million
(approximately $1.6 million) through
a placing (the "Placing") of 3,920,000 new ordinary shares of
1 pence each in the Company (the
"Placing Shares") at a price of 25.5
pence per Placing Share (the "Issue Price"). The Issue Price
represents a discount of approximately 0.97 per cent to the closing
middle market price of 25.75 pence
per ordinary share on November 26,
2012, being the last trading day prior to this announcement
and the new shares represent approximately 0.48 per cent of the
enlarged issued share capital.
In addition, the subscriber for the Placing Shares has been
issued with three quarters of a warrant for every such Placing
Share so subscribed (with fractional entitlements rounded down to
the nearest whole warrant) (the "Warrants") comprising a total of
2,940,000 Warrants. The Warrants are exercisable into Ordinary
Shares on a one for one basis at a price of 28.05 pence each (being equal to a 10 per cent
premium to the Placing Price) at any time prior to November 30, 2016. The Warrants are
non-transferable save in limited circumstances. No application will
be made for admission of the Warrants to trading on AIM or to be
listed on the Toronto Stock Exchange.
The net proceeds of the Placing will be used to fund the
development expenditure for the Lomada de Leiva gold production
project, continuing development expenditure on the Cap-Oeste and
COSE projects in Argentina and to
provide general working capital for the Company.
The Placing is conditional on admission of the Placing Shares to
trading on AIM ("Admission"). The Placing Shares will be fully paid
and will rank pari passu in all respects with the Company's
existing ordinary shares 1 pence each
("Ordinary Shares"). Application has been made to the London Stock
Exchange for Admission and application has been made to list the
Placing Shares on the Toronto Stock Exchange. It is expected
that Admission will become effective and that dealings in the
Placing Shares will commence at 8.00
a.m. on Friday, November 30,
2012. Following Admission, the Company's issued share
capital will consist of 812,605,878 Ordinary Shares with voting
rights. Patagonia Gold does not hold any Ordinary Shares in
treasury.
The aforementioned figure of 812,605,878 Ordinary Shares may be
used by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in,
Patagonia Gold under the Financial Service Authority's Disclosure
and Transparency Rules.
About Patagonia Gold
Patagonia Gold Plc is an advanced mining exploration company that
seeks to grow shareholder value through the acquisition,
exploration and development of gold and silver projects in the
southern Patagonia region of Argentina. The Company is primarily focused on
the development of three projects: the flagship Cap-Oeste project,
the nearby COSE project and the Lomada heap leach which is expected
to begin generating free cash flow by 2013. Patagonia Gold,
indirectly through its subsidiaries or under option agreements, has
mineral rights to over 220 properties in several provinces of
Argentina and Chile, and is one of the largest landholders
in the province of Santa Cruz.
Patagonia Gold is listed on the Toronto Stock
Exchange (TSX) under the symbol PAT and has been listed on the AIM
market of the London Stock Exchange under the symbol PGD since
2003.
NEITHER THIS ANNOUNCEMENT NOR ANY PART OF IT
CONSTITUTES AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN
OFFER TO BUY, SUBSCRIBE OR ACQUIRE ANY PLACING SHARES IN ANY
JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE
UNLAWFUL. THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT
FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY,
IN OR INTO THE UNITED STATES (SAVE
IN CERTAIN LIMITED CIRCUMSTANCES FURTHER DETAILS OF WHICH ARE SET
OUT IN THE TERMS AND CONDITIONS ATTACHED TO THIS ANNOUNCEMENT),
AUSTRALIA, CANADA, JAPAN
OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR
DISTRIBUTION WOULD BE UNLAWFUL.
Cautionary Statement Regarding Forward-Looking
Information
This news release includes certain information that may constitute
"forward-looking information" under applicable securities
legislation. Forward looking information includes, but is not
limited to, statements about the expected closing of the Placing,
the admission of the Placing Shares to trading and the use of
proceeds from the Placing. Forward-looking information is
necessarily based on a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown
risks, uncertainties, and other factors which may cause the actual
results and future events to differ materially from those expressed
or implied by such forward-looking information, including the risks
identified in the Company's public disclosure, the risk that
regulatory approvals required in connection with the Placing may
not be received and the risk that other conditions of the Placing
may not be met. There can be no assurance that such information
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on
forward-looking information. All forward-looking information
contained in this press release is given as of the date hereof and
is based upon the opinions and estimates of management and
information available to management at the date hereof. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
www.patagoniagold.com
SOURCE Patagonia Gold plc