London, 8 June 2009: Ascot Mining PLC ("Ascot" or the "Company") (PLUS Markets:
ASMP, XETRA: AM3.DE)
is pleased to announce that it will sell up to a maximum
of 7,000 Troy ounces of its planned near term
production of gold, of which
1,486 ounces of gold has been subscribed for, resulting in proceeds to
the
Company of US$1,000,885.60.
This forward sale programme is in response to the interest being
demonstrated
by active investors and reflects their confidence in Ascot Mining and the
future value
of gold. Ascot has structured its forward gold sale programme to
meet this investor demand for physical
gold by arranging future delivery at
an attractive discount to the current spot price. Ascot has
determined this
forward sale to be a prudent business scenario and is limiting its forward
sales to
7,000 ounces, which represents a modest percentage of its projected
near term production over the next
12 - 18 months. As noted above,
1,486 ounces has already been taken up. This is non dilutive to
Ascot's
shareholders and could be potentially immensely profitable to the
participating investors.
Proceeds will accelerate production from Ascot's
operating companies and allow sufficient capital for
the Company to
aggressively expand its gold production.
The Board of Ascot has strived to minimize
shareholder dilution and today
the Company is pleased that it has four permitted gold mines planned to
go into production in the near term with still fewer than 30 million
shares in issue. This forward
gold sale programme provides a cost
effective and competitive financing solution to Ascot's capital
requirements.
David Jackson, CEO of Ascot, commented; "Despite intense pressure, Ascot
has
resisted several proposals for discounted and dilutive financing.
While the effect has been to
somewhat delay its production schedule it
has enabled the Company to maintain future shareholder
value. This
forward gold sale programme puts the Company on a much stronger footing
and allows us to
achieve our objectives without the dilution normally
associated with early stage equity financing
whilst potentially rewarding
participating investors with returns substantially in excess of other
investment options. Once processing operations commence, Ascot's focus
will be to grow its
production toward its declared objective of 100,000
ounces per year".
About Ascot Mining:
Ascot
Mining PLC ("Ascot") is developing and rehabilitating previously
producing gold mines in Costa Rica.
Since its inception just two years
ago, the Company has been working intensively through its three
wholly
owned subsidiaries:
1. Veritas Gold - Chassoul Gold Mine
2. Veritas Mining - Tres
Hermanos, El Recio and Boston Gold Mines
3. Veritas Ressources - La Toyota Mine Joint Venture Gold
Mine
Each of these three subsidiaries is now close to production, at which
stage they will generate
substantial cash flow. See: www.ascotmining.com
Enquiries:
Ascot Mining PLC
Damien Daly
+44 (0)
7880 55 46 47
info@ascotmining.com
The Directors take responsibility for the contents of this
announcement.
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