TORONTO, Feb. 27, 2013 /CNW/ - Patagonia Gold Plc (TSX: PAT), (AIM: PGD) today announced it has raised gross proceeds of
approximately £6.2 million (approximately US$9.4 million) through a
subscription (the "Subscription") of 41,196,687 new ordinary shares of
one pence each in the Company (the "Subscription Shares") each at a
price of 15 pence per Subscription Share (the "Issue Price").
The Issue Price represents a discount of approximately 3.23 per cent to
the closing middle market price of 15.5 pence per ordinary share on
February 26, 2013, being the last trading day prior to this
The net proceeds of the Subscription will be used to fund exploration
and drilling expenditure on the Cap-Oeste and COSE projects in
Argentina and to provide general working capital for the Company.
Subscription Shares were subscribed for by Carlos Miguens and William
Humphries, each a Director of the Company, and their disclosable
interests are as set out below.
The participation of Carlos Miguens and William Humphries in the
Subscription is deemed to be a related party transaction under the AIM
Rules. The Company's independent Directors consider, having consulted
with Strand Hanson Limited, the Company's nominated adviser, that the
terms of their participation in the Subscription are fair and
reasonable insofar as the Company's shareholders are concerned. The Subscription Shares will represent 4.82 per cent of the enlarged
issued share capital of the Company and the Subscription is conditional
on admission of the Subscription Shares to trading on AIM
The Subscription Shares will rank pari passu in all respects with the existing ordinary shares of the Company.
Application has been made to the London Stock Exchange for Admission of
the Subscription Shares and application has been made to list the
Subscription Shares on the Toronto Stock Exchange. It is expected that
Admission will become effective and dealings in the Subscription Shares
to trading on AIM will commence at 8:00 a.m. on March 5, 2013.
Following the Subscription, the Company will have 853,827,565 ordinary
shares in issue. This figure may be used by shareholders 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, the Company, under the Disclosure and Transparency Rules.
About Patagonia Gold
Patagonia Gold Plc is a mining company that seeks to grow shareholder
value through exploration, development and production of gold and
silver projects in the southern Patagonia region of Argentina. The
Company is primarily focused on three projects: the flagship Cap-Oeste
project, the nearby COSE project and the Lomada heap leach project,
which is generating free cash flow. 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.
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 Subscription, the admission of the
Subscription Shares to trading and the use of proceeds from the
Subscription. 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 Subscription may not be received and the risk that other
conditions of the Subscription 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.
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 NEW ORDINARY 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.
SOURCE: Patagonia Gold plc
For further information:
Bill Humphries / Nigel Everest
Patagonia Gold Plc
Tel: +44 (0)20 7409 7444
Philip Yee, CFO
Patagonia Gold Plc
Tel: +1 (416) 572 2007
Barnes Communications Inc.
Tel: +1 (416) 367-5000
Angela Hallett / James Dance
Strand Hanson Ltd
Tel: +44 (0)20 7409 3494
Mirabaud Securities LLP
Tel: +44 (0)20 7878 3360
David Bick / Mark Longson
Square 1 Consulting
Tel: +44 (0)20 7929 5599