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December 19, 2007 |
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SINO GOLD MINING: Completes AU$170 million Placement Sino Gold Mining Limited has completed the bookbuild of a AU$170 million placement through the issue of 26.46 million shares to institutional investors. The Placement was conducted through a bookbuild process joint lead managed by Macquarie Equity Capital Markets and Merrill Lynch with a final price of AU$A6.45 per share. The 26.46 million shares issued pursuant to the Placement represents 13.2% of the existing issued share capital of the Company. The number of the Placees will not be less than six. The issue price, net of the estimated expenses of the Placement, will be approximately A$6.32 per share. The shares will be issued to clients of the joint lead managers or Placees. To the best of the knowledge and belief of the directors of the Company, and after making all reasonable enquiry, each of the Placees and their ultimate beneficial owner(s) are third party independent of the Company and its connected persons save for Gold Fields Australasia BVI Ltd, being a substantial shareholder of the Company with approximately 16.5% interest in the Company immediately before and after completion of the Placement. The final price represents a 5.4% discount to the volume weighted average price of Sino Gold’s shares in the five trading days immediately prior to the Placement. The final price represented a 4.4% discount to the closing price of Sino Gold shares of AU$6.75 on the day immediately prior to the announcement of the Placement. Commenting on the Placement, Jake Klein, President and CEO of Sino Gold, said: "The support by new and existing shareholders for the Placement is a strong endorsement of the Company's strategy. The successful execution of the Placement provides the financial resources to progress Eastern Dragon and Beyinhar towards becoming Sino Gold's third and fourth gold mines after White Mountain and Jinfeng." The Placement will be settled in two tranches: -- Unconditional Tranche: 9.79 million shares, equal to Sino Gold’s available placement capacity from its 15% general mandate to be settled on 20 December 2007; and -- Conditional Tranche: 16.67 million shares, which will be settled subject to approval at an Extraordinary General Meeting of Sino Gold shareholders, expected to be held on January 24, 2008. In addition, the Placement is subject to, among other things, the granting of the listing approval of, and permission to deal in, the shares to be issued pursuant to the Placement. Completion of the unconditional and conditional tranches of the Placement will take place on or before December 20, 2007, and January 31, 2008, respectively. The Company will apply to the Listing Committee of the Stock Exchange for the listing of, and permission to deal in, the shares to be issued pursuant to the Placement. Proposed Use of Proceeds Item Amount ---- ------ Eastern Dragon acquisition & associated costs $105,000,000 Eastern Dragon exploration & working capital $5,000,000 Construction, pre development, feasibility and exploration of various assets including Beyinhar, Nibao, Biogold and White Mountain along with general working capital $40,000,000 General working capital and exploration and development of other existing assets $20,000,000 ------------ Total: $170,000,000 About Sino Gold Headquartered in Sydney, Australia, Sino Gold Mining Limited -- http://www.sinogold.com.au/ -- is engaged in mining and processing of gold ore and the sale of recovered gold, as well as exploration and development of mining properties. Sino Gold incurred net losses of AU$21.14 million, AU$26.21 million and AU$20.05 million for the years ended Dec. 31, 2004, through 2006. |
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