North River Resources raises one million pounds through placing

AIM-listed mineral exploration and development company North River Resources has conditionally raised gross proceeds of approximately one million pounds through the placing of 285.7m new ordinary shares at a price of 0.35p per ordinary share.

The company reported that the placing would allow North River to accelerate a program of re-opening the Namib Lead-Zinc mine in Namibia. The proceeds would be used to fund the structural geology review currently underway by CSA Global, underground and surface drilling, and for general working capital purposes.

Application has been made for the placing shares - which will rank pari passu in all respects with the existing ordinary shares of the company - to be admitted to trading on AIM, which is expected to be effective from 8.00 a.m. on May 1st, the company said.

Martin French, Executive Director of North River, commented: "We are pleased to have completed this placing in the most difficult of market conditions for junior mining companies. We believe this is a testament to our strong operational plan and the excellent value represented by our shares at this level."

North River Resources' portfolio of projects in Namibia and Mozambique includes large areas under exploration licence, advanced studies over previously producing assets and joint ventures with other exploration companies.

The company is approximately 38% owned by Kalahari Minerals, the wholly-owned subsidiary of Taurus Mineral, a company formed at the direction of CGNPC Uranium Resources Company Limited and the China-Africa Development Fund.

North River Resources' share price was down 5.88% to 0.40p at 11:21 on Friday.

MF