REG - Frontier Mining Ltd - Issue of Shares

Fri Dec 31, 2010 5:44am EST

* Reuters is not responsible for the content in this press release.

RNS Number : 7875Y
Frontier Mining Ltd
31 December 2010
 

Frontier Mining Ltd

("Frontier" or "the Company")

Issue of Shares

 

Further to the announcement on 18 October 2010 regarding the proposed acquisition of interests in the Benkala copper deposit in northern Kazakhstan currently under development (the "Benkala Copper Project") and the Maminskoye gold deposit in the southern Ural region of Russia currently under exploration (the "Maminskoye Gold Project"), the Company has today issued 873,215,000 new ordinary shares which is equal to 47 per cent of the enlarged issued share capital of Frontier.

However the transfer of title of the remaining 50% interest in US Megatech BVI, which owns the Benkala Copper Project, currently held by Coville to Frontier is subject to receipt of consent to the transaction from the Kazakhstan Ministry of Industry and New Technology ("MINT").   Accordingly Frontier has taken a legal charge over all the outstanding shares of US Megatech BVI.  Once the consent for the acquisition has been received from MINT, the Benkala Copper Project and Maminskoye Gold Project will become 100% owned by Frontier.

It is expected that the share admission to AIM will become effective at 8 a.m. on 7 January 2011. The new shares are subject to a 12 month lock-in period.

Further announcements in connection with the completion of the acquisition 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

+44 (0) 20 7933 8780

 

 

Notes to Editors

 About Frontier Mining Ltd:

Frontier Mining Ltd. is a mineral exploration and development Company that is incorporated in the Cayman Islands 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.

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 U.S. Megatech BVI, the joint venture company that owns  KazCopper LLP, which in turn owns 100% of 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 represents development 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 1,857,747,306 ordinary shares issued.

 

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

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IOELLFSIFLLLVII
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.