MMS.L Regulatory News (MMS)

5 Jun 2007 12:15

Maghreb Minerals PLC05 June 2007 Fundraising and notice of Extraordinary General Meeting Maghreb Minerals Plc ("Maghreb" or the "Company"), the AIM-quoted explorationcompany developing base metal and industrial mineral deposits in North Africa,announces that it has completed a conditional placing raising approximately£2.6m. The monies raised will be used to accelerate drilling and resource evaluation onthe Company's exploration permits that cover the former producing lead-zincmines at Bou Jabeur and Fej Lahdoum as well as its Zaghouan Zriba - Guebliindustrial minerals exploration permit allowing their development to minepre-feasibility stage. The Company will also continue to meet its commitments onits other highly prospective exploration permits in Tunisia. The existing power to allot shares for cash granted by Maghreb's shareholders tothe Directors is insufficient to allow the issue of the requisite number ofshares to meet the demand for Maghreb shares. As a result, the Placing is beingcarried out in two tranches with the second tranche being placed subject to thepassing of certain resolutions at an Extraordinary General Meeting of theCompany ("EGM"). The total placing will comprise 36,842,837 ordinary shares representingapproximately 42 per cent. of the enlarged share capital of the Company. Ofthese, 10,799,984 ordinary shares will be issued subject to the passing of thenecessary resolutions at the EGM to be held on 28 June 2007. It is expected thatdealings in the first tranche of ordinary shares, comprising 26,042,853 shareswill commence at 8.00 a.m. on 11 June 2007 and that the ordinary shares placedconditional upon the passing of the necessary resolutions at the EGM be admittedat 8.00 a.m. on 4 July 2007. In relation to the above, the Company has today posted a circular toshareholders convening the EGM to be held at the registered offices of theCompany at 25 Moorgate, London, EC2R 6AY at 10:00 a.m. on 28 June 2007. The Board is very encouraged by the investment community's support of MaghrebMinerals Plc. Gordon Riddler, Executive Chairman commented: "This is a welcome and very positive endorsement of the Company and its clearstrategy to focus on those assets which are most likely to be brought intoproduction at the earliest possible opportunity, principally throughacceleration of its drilling programmes." "Following the successful conclusion of negotiations with the Office Nationaldes Mines in January 2007, the Company now has a clear path to earn a 90%interest in the Bou Jabeur and Fej Lahdoum exploration permits. Both permits aspreviously reported cover past producing lead-zinc mines and have knownresources but not to International Reporting Standards. The Directors believethat both the Bou Jabeur and Fej Lahdoum exploration permits and the Company'sDjebba exploration permit offer the potential to re-establish mining operationsfor lead-zinc in Tunisia and provide the opportunity for the Company to join theranks of junior mining companies." "In addition, the Zaghouan Zriba-Guebli exploration permit covers the pastproducing Zriba fluorite mine. Subject to establishing additional resources,this area also holds the potential to become a mine and conditional uponreaching the pre-feasibility stage, the Company has received indications inprinciple of development funding for its industrial mineral interests." "The Board is particularly pleased that the Company is beginning to receiverecognition of the development potential of its assets in Tunisia and the fundsraised will allow us to develop those assets that may potentially generate cashflow in the medium term." The technical content of this press release has been reviewed by the ExecutiveChairman of Maghreb Minerals plc, Gordon Riddler, BSc, MBA, FIMMM, CEng, CSciwho has 40 years of experience in the mining sector and is a Fellow of theInstitute of Materials, Minerals and Mining, a recognised professionalassociation. 5 June 2007 ENQUIRIES: Maghreb Minerals Plc Tel: +44 (0) 20 7556 7038Gordon Riddler, Executive Chairman Hanson Westhouse Limited Tel: +44 (0) 20 7601 6100Tim Metcalfe / Anita Ghanekar Bankside Consultants Tel: +44 (0) 20 7367 8888Michael Padley / Michael Spriggs This information is provided by RNS The company news service from the London Stock Exchange