Minority investment in Dragon Mining Limited
December 04 2009 - 5:43AM
UK Regulatory
TIDMBRM
RNS Number : 6015D
Brinkley Mining PLC
04 December 2009
For Immediate Release
4 December 2009
Brinkley Mining PLC
"Brinkley Mining" or the "Company")
Minority investment in Dragon Mining Limited
The Board of Brinkley Mining is pleased to announce today that it has purchased
an investment of 8.13 per cent. in Dragon Mining Limited ("Dragon") for a cash
consideration of A$5.4 million, equivalent to approximately GBP3 million at
current exchange rates. The investment has been financed from Brinkley Mining's
cash balances.
Dragon Mining is listed on the Australian Stock Exchange (ASX Code: DRA) with a
market value of approximately A$66 million and operates the Svartliden Gold Mine
in Sweden and the Orivesi and Jokisivu Gold Mines in Finland, which collectively
produced 74,206 ounces of gold in 2008. As reported in Dragon's audited report
and accounts for the year ended 31 December 2008, Dragon had a group total JORC
compliant reserve and resource as at that date as follows:
+----------------------------+-----------+-------------+------------+
| Classification | Tonnes | Gold (g/t) | Gold |
| | | | (ounces) |
+----------------------------+-----------+-------------+------------+
| Measured | 453,700 | 3.9 | 56,900 |
+----------------------------+-----------+-------------+------------+
| Indicated | 3,411,700 | 5.1 | 555,960 |
+----------------------------+-----------+-------------+------------+
| Inferred | 3,246 | 5.2 | 542,800 |
+----------------------------+-----------+-------------+------------+
| Total | 7,111,700 | 5.1 | 1,155,660 |
+----------------------------+-----------+-------------+------------+
Notes:
1. Source: Dragon Mining Limited 2008 audited Report and Accounts. These reserves
and resources have not been independently verified by Brinkley Mining.
2. Total above includes Dragon's 20% interest in Zara.
In the nine months ended 30 September 2009, Dragon announced that it had
produced to date 49,097 ounces of gold. In the year ended 31 December 2008,
Dragon made a profit before taxation of A$8.167 million on a turnover of A$69.98
million. As at 31 December 2009 Dragon's net assets amounted to A$44.163
million. For the six months ended 30 June 2009, Dragon announced that it had
made a loss before taxation of A$7.532 million (after a foreign exchange loss of
A$16.293) on a turnover of A$40.904 million. Net assets as at 30 June 2009
amounted to A$43.618 million. Further information on Dragon is available at its
website, www.dragon-mining.com.au.
Eurogold Limited, which owns 29.04 per cent. of Brinkley Mining is also
interested in 0.9 per cent. of Dragon andPeter Gunzburg, a Director of both
Brinkley and Eurogold has an interest, through other related entities, in 0.1 pr
cent. of Dragon.
For further information please contact:
Brinkley Mining Plc
Peter GunzburgTel: +618 94810572
Beaumont Cornish Limited
Michael CornishTel: +44 (0) 20 7628 3396
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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