For Immediate Release                                                                                                                     29 September 2014

London Mining Plc

Quoted on London AIM (LOND)

("London Mining" or the "Company")

Financing Update


The Company is now in detailed negotiations with a potential strategic investor to make an investment in the Group with a deal structure under consideration. This currently contemplates funding of the life of mine expansion and a material cash injection into the Company which will give rise to a significant dilution to the existing equity and a revised capital structure. The proposed investment as currently structured is expected to require a number of weeks to implement, and there can be no certainty that such discussions will be successful.

At present the Company does not have sufficient liquidity to enable it to continue to trade through this period without raising further finance. Funds from Afreximbank are not expected to be available in the required time period with discussions on structure ongoing. The Company's lenders are working constructively with us to enable investment into the Group and in addition are currently considering the provision of further finance. While the lenders remain supportive of the process there can be no certainty at this time that such arrangements can be put in place ‎to facilitate such an investment.

For more information please contact:

London Mining Plc

Graeme Hossie, Chief Executive Officer

Benjamin Lee, Chief Financial Officer

Thomas Credland, Head of Investor Relations

+44 (0)20 7408 7500

Liberum Capital (Nominated Adviser/Broker)

Richard Crawley / Tom Fyson

+44 (0)20 3100 2000

J.P. Morgan Cazenove (Broker)

Ben Davies / Ignacio Borrell

+44 (0)20 7742 4000

Buchanan

Bobby Morse / Louise Mason

+44 (0)20 7466 5000

About London Mining

London Mining is an expanding producer of high specification iron ore concentrate for the global steel industry and is focused on identifying, developing and operating sustainable mines. The Company is on track to produce c. 5Mwmt in 2014, from its 100% owned Marampa Mine in Sierra Leone, increasing to 6.5Mwmt/a following the next phase of expansion. Marampa has  resources of c.1Bnt to support a mine life of over 40 years and a staged expansion to 20Mwmt/a of iron ore production. London Mining has also completed bankable feasibility studies outlining plans for the development of its projects in Greenland and Saudi Arabia, with an aggregate JORC attributable resource of 1,203Mt. The Company listed on AIM on 6 November 2009 and trades under the symbol LOND. More information about London Mining can be found at  www.londonmining.com.


This information is provided by RNS
The company news service from the London Stock Exchange
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