Mine Opening Closer After Angus and Ross Raises Pounds 3.5m

ZINC and lead mining firm Angus & Ross said today it had raised Pounds 3.5m from shareholders.

The Kirkbymoorside-based firm, which wants to re-open the Black Angel Mine in Western Greenland, will put the money towards completing the installation of its cable car and beginning to add equipment to make the mine operational.

However it admitted the date of the start-up of the mine was likely to be behind schedule.

The money raised came from the placing of 70,639,000 ordinary shares at 5p, raising Pounds 3,531,950 before expenses.

It will also be used to repay a short term loan of $1.65m due in August 2008 from Cyrus Capital Partners Europe.

A & R said the start-up of production in Greenland will depend on the weather, the availability of further project finance, the work schedules of sub-contractors and the delivery dates of machinery.

The actual date of the start-up of mining is likely to be behind the original timetable, but the current financing will allow the installation of the cable car to be completed, the firm said.

Access to the mine will, in due course, allow further exploration within the mine and in particular the Deep Ice zone where significant resources remain to be defined.

Chairman Robin Andrews said: “It is gratifying that so many shareholders have supported this placing despite the current difficulties in capital markets.

“In particular we welcome RAB Capital’s significant and increased stake in Angus & Ross which should give confidence to all fellow shareholders.

“With zinc and lead prices currently depressed all major zinc miners throughout the world are struggling and their share prices reflect this.

“The Black Angel mine was historically one of the richest in the world. This fact will be a major advantage for your company during a period of low metal prices.”

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