REG - Frontier Mining Ltd - Completion of Re-Domicile

Fri Dec 17, 2010 2:00am EST

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RNS Number : 1460Y
Frontier Mining Ltd
17 December 2010
 



Frontier Mining Ltd (AIM: FML)

("FML (Delaware)" or the "Company")

Completion of Re-domicile

 

 

Further to the announcement on 18 October 2010 regarding the proposed re-domicile of the holding company of the group from Delaware, USA to the Cayman Islands (the "Re-domicile"), in which it was stated that the proposals required certain permits, waivers and consents from certain Kazakhstan government bodies to be granted, the Company has been advised that, in respect of the Re-domicile, it is only required to submit a notification to the Kazakhstan Ministry of Industry and New Technology (the "Ministry"). The Company has now submitted the notification and accordingly the Re-domicile will now be implemented and will become effective on Tuesday 21 December 2010.

 

It is expected that the admission to AIM will become effective and dealings will commence in the new FML (Cayman) shares at 8 a.m. on 22 December 2010. The admission of FML (Delaware) shares to trading on AIM is also expected to be cancelled at 8.00 a.m. on 22 December 2010.

 

Further announcements regarding the completion of the acquisition of the remaining 50% interest in the Benkala Copper Project and the 100% interest in the Maminksaya Gold Project from Coville Intercorp Ltd will be made in due course.

 


For further details please contact:

 

Frontier Mining Ltd

George Cole

+44 (0) 20 7898 9019




Libertas Capital

Sandy Jamieson

+44 (0) 20 7569 9695




Walbrook PR

 

Bob Huxford (media relations)

Paul Cornelius (investor relations)

+44 (0) 20 7933 8783

+44 (0) 20 7933 8794

 

 

Notes to Editors

 

About Frontier Mining Ltd:

 

Frontier Mining Ltd. is a mineral exploration and development Company that was incorporated in the state of Delaware, USA, on 5 August 1998 for the purpose of exploring and developing gold and copper deposits in the Republic of Kazakhstan. Through its subsidiaries and affiliates, Frontier locates, evaluates, acquires, explores and develops mineral properties.

 

The Company announced on 18 October its intention to re-domicile the holding company of the Group from Delaware, USA to the Cayman Islands (the "Re-domicile") and the proposed acquisition of interests in the Benkala copper deposit in northern Kazakhstan currently under development (the "Benkala Copper Project") and the Maminksaya gold deposit in the southern Ural region of Russia currently under exploration (the "Maminksaya Gold Project") (the "Asset Acquisition"). The Proposals were duly passed by shareholders in a Special Meeting held on 8 November 2010.

 

On the Re-domicile becoming effective, each outstanding ordinary share of the Company will be converted into and represent the right to receive one share in the new Cayman Company ("FML (Cayman)") save that each outstanding ordinary share of the Company whose holder is not an "accredited investor", as such term is defined in Rule 501 of Regulation D promulgated under the United States Securities Act, will be converted into and represent the right to receive a cash payment in U.S. Dollars.  The shares of the Company will then be admitted to trading on AIM. Upon the Re-domicile becoming effective, ordinary shares in the Company will be cancelled, resulting in the respective holdings of shareholders in the FML (Cayman) (excluding holders who are not "accredited investors") being the same as the respective holdings of shareholders in the Company immediately prior to the Merger becoming effective.

 

Frontier currently owns two licenses in Kazakhstan.  They are the Naimanjal exploration and mining licence, held by FML Kazakhstan, and, 50% of U.S. Megatech BVI which holds the Benkala licence. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd.  Frontier has one producing gold mine, Naimanjal; one pre-feasibility stage gold project, Koskuduk; and the recently acquired 50% interest in the Benkala copper mine.

 

Frontier also has a potential copper porphyry deposit with associated gold and molybdenum, Baitimir; and several copper/gold prospects along a 25-km trend including both VMS and porphyry types.  Metallurgical tests on its Beschoku and Yubileiny copper projects confirm the oxide copper ore is amenable to extraction using low cost SX-EW technology.

 

Frontier owns a 50% interest in KazCopper LLP, the joint venture company that owns the Benkala copper-molybdenum-gold deposit located in north-western Kazakhstan within the Urals gold/copper ore belt.

 

A Competent Persons Report ("CPR") valuation report on the oxide section  of the Benkala project completed by Wardell Armstrong International ("WAI") in June 2010 has resulted in an NPV of $190 million  based on 0.5% diluted copper grade, 63% recovery and 185 000 ton of contained metal and 6,000 USD per tonne copper price. The oxide copper project representsdevelopment of approximately 10% of the total resource at Benkala and Frontier will use the production platform of the SX-EW project to finance further evaluation and technical studies required to advance development of the significant Benkala sulphide resource.

 

Frontier maintains an administrative office in Almaty, the former capital city of Kazakhstan and the main business centre in the southeast. The Company also maintains an office in Semipalatinsk, close to the Naimanjal operations, which is the base for all exploration and development personnel with additional administrative support for exploration. Semipalatinsk is 830 kilometres north of Almaty, connected by regular commercial airline services.

 

Issued Share Capital:

 

Frontier Mining's shares are traded on the AIM market of the London Stock Exchange.

Frontier has 917,336,206 ordinary shares issued.

 

 

For further information please visit: www.frontiermining.com.

 

 


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