West-Perth based diamond exploration and development company Lonrho Mining Ltd has successfully raised almost $4 million through the placing of 14 million fully paid ordinary shares at 28 cents per share to a number of significant European based institutional investors.
The placement follows a recently completed roadshow in London and Europe where a strong level of support was received for the Company from several key institutional investors.
Funds raised via the placement will be used to accelerate exploration activities at the company's flagship project in Angola, the Lulo Diamond Concession and for working capital purposes.
Lonrho Mining is due to commence an aero-magnetic survey at the Lulo Diamond Concession, with results expected in January 2008.
The company is also pleased to report significant progress in relation to its proposed listing on the Alternative Investment Market of the London Stock Exchange ("AIM").
The company is finalising the appointment of its nominated advisor and broker and has engaged other advisors and expects to complete a further placing of shares on admission to AIM in February/March 2008. The terms of the placing have not been finalised, however the company has received significant interest from several strategic European institutions.
The proposed AIM listing is intended to raise the company's profile, enhance investor awareness and offer existing international investors easier access to the company's securities. It will also improve the company's flexibility and access to international investors for future capital raisings that may be required to support its minerals exploration activities in Africa.
The placement shares will be issued immediately under the company's 15 per cent placement capacity.
