VANE Minerals PLC (AIM:VML) is pleased to announce that the Company has provisionally allocated an issue of 28,571,428 ordinary shares ("Ordinary Shares") to placees with a view to raising gross proceeds of approximately £5 million at a placing price of 17.5p per Ordinary Share ("Proposed Placing").
Completion of the Proposed Placing remains subject to the placees who comprise institutional investors in Canada and the United Kingdom, entering into formally binding subscription agreements. The Proposed Placing is also conditional, inter alia, on the approval of the Company's shareholders being granted for the issue of the Ordinary Shares.
The net proceeds of the Proposed Placing are to be used primarily for accelerating VANE's breccia pipe drilling campaign in northern Arizona, where the Company has 39 drill targets, and for proceeding to further rounds of drilling on the Company's six properties in Utah. It is envisaged that further drilling at the North Alice Extension and North Wash in Utah should enable the Company to produce a Canadian National Instrument 43-101 complaint resource statement in the early part of 2008.
As previously notified to shareholders, VANE continues to be in discussions with a number of entities regarding potential joint venture/ acquisition opportunities, all of which the Company is confident could add significantly to the Company's portfolio of assets.
Westwind Partners (UK) Limited is acting as lead agent (the "Lead Agent") for the Proposed Placing in Canada and the United Kingdom and Ambrian Partners Limited is acting as broker to the Proposed Placing in the United Kingdom.
Matthew Idiens, Executive Director, commented "The Board of VANE is extremely pleased with the interest shown in the capital raising by new investors, especially from North America where our assets are primarily based and we are looking forward to accelerating drilling with the intention of producing a resource statement early next year".
It is expected that the necessary Extraordinary General Meeting (the "EGM") will be convened and that the Placing will be completed on or before 30 November 2007 (or such later date as the Company and the Lead Agent may agree being not later than 31 December 2007). A circular to the Company's shareholders convening the EGM will be despatched shortly.