London Mining may raise $90 million through private placement of stock

Proceeds used at Marampa Project; J.P. Morgan, Liberum are bookrunners

By Devika Patel

Knoxville, Tenn., Jan. 24 - London Mining plc said it has negotiated a $90 million private placement of shares.

The company offered up to 11,199,214 ordinary shares in a firm placing, and additional shares will be sold on a conditional basis after shareholder approval is secured at a Feb. 13 meeting.

J.P. Morgan Cazenove and Liberum Capital Ltd. are the joint bookrunners.

Proceeds will be used to accelerate production at the Marampa iron ore project in Sierra Leone.

"The equity issue announced today will enable London Mining to accelerate the growth of the Marampa Project in Sierra Leone, as well provide us with greater headroom to execute our long term strategy and withstand short term fluctuations in the iron ore price," chief executive officer Graeme Hossie said in a press release. "Marampa has already been significantly technically de-risked following the start of production of high quality sinter concentrate from the first plant and the full commissioning of the logistics required to supply the seaborne iron ore market."

London Mining is a London-based iron ore mining company.

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