Mamba plans $1.15m capital raising

Mamba Minerals plans to raise more than $1 million via a placement and non renounceable rights issue for on-going project cost and evaluation, new project acquisition and to provide further working capital.

The $1.15 million capital raising will be made up of a rights issue of one new share for every two shares held at the record date at 3 cents per share to raise approximately $560,000 and a placement of 18,625,000 ordinary shares at 3 cents per share to raise approximately $560,000.

There will also be a placement of 18,625,000 options to subscribe for a further share at an exercise price of 5 cents per share with an expiry date of 30 June 2013 at an issue price of 0.1 cents per option to raise approximately $19,000.

The rights issue is not underwritten, but the Directors and IOC will reserve the right to place and shortfall within a period of 3 months following the close of the offer period.

The company is in discussion with potential new joint venture partners and should these be successful, Mamba expects to be mining in 2010 or a potential buyout may result.

Full announcement below:

MAMBA ANNOUNCES $1.15M CAPITAL RAISING
Mamba Minerals Limited ("Mamba") (ASX:MAB) is pleased to announce a placement and non renounceable rights issue to raise gross proceeds of approximately $1.15 million.

Indian Ocean Capital ("IOC") has been appointed Lead Manager to the capital raising.

The capital raising will incorporate:

- A non renounceable rights issue of one (1) new share for every two (2) shares held at the record date at 3 cents per share to raise approximately $560,000. In addition for every two (2) rights shares applied for, one (1) free option to subscribe for a further share at an exercise price of 5 cents per share with an expiry date of 30 June 2013 will be issued. The rights issue is not underwritten, but the Directors and IOC will reserve the right to place and shortfall within a period of 3 months following the close of the offer period.

- A placement of 18,625,000 ordinary shares at 3 cents per share to raise approximately $560,000. In addition for every two (2) placement shares applied for, one (1) free option to subscribe for a further share at an exercise price of 5 cents per share with an expiry date of 30 June 2013 will be issued. The placement will be made following shareholder approval at a general meeting which will be convened in due course in accordance with ASX Listing Rule 7.1.

- A placement of 18,625,000 options to subscribe for a further share at an exercise price of 5 cents per share with an expiry date of 30 June 2013 at an issue price of 0.1 cents per option to raise approximately $19,000.

Funds from the capital raising will be used for on-going project cost and evaluation, new project acquisition and to provide further working capital.

The Directors are in discussion with potential new Joint Venture partners; should these be successful, Mamba expects to be mining in 2010 or a potential buyout may result.