London Mining Developing Mines

London Mining  PLC (LOND.L)

London Mining Plc is developing mines to supply the global steel industry. The Company has iron ore exploration and development projects located in Sierra Leone, Saudi Arabia, Greenland, China and Chile, and a coking coal project in Colombia. The Company’s products include pellet feed, P1 sinter feed / P2 sinter/pellet and DR pellets. The Marampa mine is a 13.82 square kilometers brownfields site. The Company focuses to develop Marampa in two phases. The Wadi Sawawin Project is located in the north-west corner of Saudi Arabia, 125 kilometers from Tabuk and 60 kilometers from the Red Sea port of Duba. Greenland includes the Isua Project. Isua is located 150 kilometers Northeast of Nuuk. Isua will produce a 70% Fe pellet feed concentrate. London Mining had completed three seasons of exploration drilling on the Isua Project.

London Mining raises shares of Vits

London Mining Announcement.

London Mining Plc is pleased to announce its intention to issue between 14.5 and up to 17.8 million new shares in a private placement. The private placement is expected to generate gross proceeds of NOK 320 million, and is managed by Pareto Securities ASA.

Chris Brown, Managing Director of London Mining Plc, is pleased to announce that the Board has decided to increase the Company's equity base through a private placement of up to 17.8 million new shares in a book building process directed towards professional and institutional investors raising gross proceeds of up to NOK 320 million. Price range in the transaction has been set to NOK 18 to NOK 22. The purpose of the private placement is to finance the capital expenditure at the Company's wholly owned Marampa iron ore mine in Sierra Leone, and to fund general working capital requirements.

Mining

What is your main objective?
 
London Mining’s objective is on identifying, developing and operating mines to become a significant producer of high quality iron ore to the global steel industry.

When was the company incorporated?
April 2005.

How many people do you employ?
In Q1 2012 the average monthly number of employees for continuing operations (including Directors) was:

Marampa (Sierra Leone)	1288
Wadi Sawawin (Saudi Arabia)	4
Isua (Greenland)	5
Colombia	54
Corporate	30
Technical Service team	5
Total	1386

Q2 2012 PRODUCTION REPORT

Highlights

• Quarterly production of 397,000 wmt (369,000 dmt) of iron ore from Marampa mine in Sierra Leone, up 26% on previous quarter
• Sales of 350,000k wmt (326,000 dmt), up 36% on previous quarter
• Consistent premium quality specification ore of 65.3% Fe with low impurities
• Expansion to 5Mtpa progressing well  with second plant  expected to be commissioned in Q1 2013
• Ramp up tracking production of 1.5Mt in 2012

Post period highlights

• Appointment of James North as Chief Operating Officer

Graeme Hossie, Chief Executive Officer of London Mining said "The ramp up at Marampa is going well and we are on track with our production plans. We continue to ship our premium quality ore to customers in China where the product has been extremely well received. We have made excellent progress with our expansion plans at Marampa to 5Mtpa next year and will complete our bankable feasibility study for the next stage growth to 9Mtpa later this year as planned. The combination of near term softening of spot prices, along with an extended commissioning period of the transhipment platform has reduced current margins, however we expect a significant margin uplift once we commence loading of larger, ungeared vessels in Q3 2012. Overall, we are pleased with the progress we have made this quarter, with logistics from mine to ship proven to be robust in the earlier than expected wet season. The hedging of some of our 2012 volume at USD148/dmt has also helped our realised price.

I am also delighted about the recent appointment of James North, who will replace Luciano Ramos as COO of the Company. James brings over 20 years of mining experience to London Mining and will play a vital role as we continue the ramp up at Marampa and execute our planned expansion plans. I am also extremely pleased that Luciano remains on the board and continues to provide ongoing support and technical advice.”