Ascot Mining PLC
SHARE PLACINGS - FORWARD GOLD SALE
London; 28 August 2009: Ascot Mining PLC ("Ascot" or the "Company") (PLUS
Markets: ASMP, XETRA(R): AM3.DE) announces that it has placed 363, 647 shares at
US$0.60 (£0.36 / Euro0.42) for cash proceeds of US$218,188 and has sold an
additional 110 Troy ounces of gold through its previously announced forward sale
programme for additional cash proceeds of US$82,770. The forward sale programme
is in response to interest being demonstrated by active purchasers and reflects
confidence in Ascot Mining and the future value of gold. The forward gold sale
programme meets demand for physical gold by arranging future delivery at an
attractive discount to the current spot price. Ascot has limited its forward
sales to 7,000 Troy ounces, a modest percentage of its projected production over
the next 12 - 18 months. 1,647 Troy ounces has now been taken up. Combined with
equity placings, Ascot's forward gold sale programme provides the Company with a
cost effective and competitive mix of financing options. Additionally, the Board
has determined it to be in the best interest of the Company and its shareholders
to remove accumulated financial obligations from its books. With immediate
effect, the Company announces the issuance of 3,202,789 shares all at US$0.60,
(equivalent to £0.36/Euro0.42) for proceeds of US$1,921,673 to give a total raised
of US$2,222,631. Included in the above issuance are 34,455 shares issued to a
director, Dr Michael Green at US$0.60 (£0.36).
David Jackson, CEO of Ascot, commented; "By removing these financial obligations
the Company has strengthened its balance sheet and can use its cash resources to
advance production. In agreeing to accept shares at US$ 0.60, the recipients are
emphasizing their confidence in Ascot's future. It underlines how far Ascot has
advanced and how quickly it has moved from development to being a near term gold
producer. In testing times in financial markets Ascot's ability to augment
equity placings with forward gold sales places the Company on a strong financial
footing".
A slide show presentation illustrating progress has been placed on the front
page of the website. This presentation will be updated as mine and mill
development progresses. See: www.ascotmining.com
In compliance with Rule 55, following this announcement there are 33,628,188
shares (nominal amount £336,282) in issue with the aggregate Directors'
interests totaling 11,645,418 shares (34.63%).
Enquiries:
Ascot Mining PLC +44 (0) 7880 55 46 47
Damien Daly info@ascotmining.com
The Directors take responsibility for the contents of this announcement.