Fresnillo places 19.6m shares with existing investor

Mining group Fresnillo has announced plans to issue just over 19.6m shares - equal to around 2.74 per cent of the current shares in the company - to funds and accounts managed by First Eagle Investment Management, an existing shareholder.

The shares will be subscribed for at a price of 1,130p each, marking a 1.99% discount to the closing price on April 26th.

The group said the proceeds of the placing will be used for general corporate purposes and its working capital needs.

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Mario Arregun, Chief Financial Officer of the Company said: "We are pleased that First Eagle, one of the company's largest existing shareholders has agreed to increase its shareholding in the company. We have made clear that we value our inclusion in the FTSE index and this placing will ensure that we retain that position."

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