BVI company announces offering and raises about £17.1 million

Sable Mining Africa Limited, AIM-listed resource company incorporated in the British Virgin Islands and mainly focused on coal and iron ore mining in Africa, announced its plans to undertake a private placement of ordinary shares to raise gross proceeds of approximately £15 million (US$24.1 million). The net proceeds of the offering will be applied to develop BVI company’s Nimba Iron Ore Project in Guinea, and for general corporate purposes.

The Offering is led by GMP Securities Europe LLP, as sole Bookrunner. Sable Mining and GMP Securities have entered into a placing agreement in connection with the Offering. The BVI company also entered into direct subscription agreements with certain investors to raise in aggregate £17.1 million (US$27.5 million) before expenses from the issue of 180,000,000 ordinary shares of no par value, at a price of £0.095 per Share.

The closing of the Offering is subject to certain conditions including the admission of the Placing Shares to trading on AIM. Application was made to the London Stock Exchange for the Placing Shares to be admitted to trading. The Placing Shares will represent approximately 16.2% of the Company’s enlarged issued share capital after Admission, which enlarged issued share capital will then comprise 1,108,473,474 ordinary shares of no par value.

By virtue of its substantial shareholding in the Company Ashendon Investments Inc is considered to be a related party of the Company within the meaning of the AIM Rules. Pursuant to a Direct Subscription Agreement Ashendon has agreed to purchase 26,315,000 Placing Shares in the Offering, at the Offering Price.

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