TIDMSRX

RNS Number : 3851V

Sierra Rutile Limited

15 April 2016

Sierra Rutile Limited

Full Exercise of Bookrunner Option

London, UK, 15 April 2016: Sierra Rutile Limited (AIM: SRX) ("Sierra Rutile" or the "Company") is pleased to announce that, further to the successful placing of 70,052,539 new ordinary shares in the Company ("Placing Shares") announced on 14 April 2016 (the "Placing"), the option granted to the bookrunners to issue an additional 3,502,627 ordinary shares at a price of 20.0 pence per share (the "Option Shares"), in connection with the Placing, has been exercised in full. The issue of the Option Shares has raised a further $1.0 million and, therefore, the Company has raised an aggregate gross proceeds of $21.0 million (GBP14.7 million)(1) from the Placing.

John Sisay, CEO of Sierra Rutile, said: "We are delighted with the continued support of our existing shareholders and welcome our new institutional shareholders, including Legal & General, to Sierra Rutile as we continue to implement our strategy of increasing production through expansion of our dry mining operations in a way that aligns production with anticipated customer demand."

The Option Shares will be issued on the terms and conditions set out in the Company's announcement dated 14 April 2016, and dealings in the Option Shares are expected to commence on AIM at 8.00am on 19 April 2016. Following the issue of the Placing Shares and the Option Shares, the Company confirms there will be 595,786,674 ordinary shares of no par value in issue.

(1) Exchange rate of 1.4275 USD:GBP at close 12 April 2016

For Further Information:

 
 Sierra Rutile Limited 
  John Sisay, Chief Executive 
  Officer 
  Matthew Hird, Chief Financial      +44 (0)20 
  Officer                            7074 1800 
 Investec Bank 
  Nominated Adviser and 
  Joint Corporate Broker 
  Chris Sim / George Price           +44 (0)20 
  / Jeremy Ellis                     7597 4000 
 Numis Securities Limited 
  Joint Corporate Broker 
  John Prior / James Black           +44 (0)20 
  / Paul Gillam                      7260 1000 
 
   RBC Capital Markets 
   Joint Corporate Broker            +44 (0)20 
   Jonny Hardy / Elliot Thomas       7653 4000 
 Kreab 
  Marc Cohen / Christina             +44 (0)20 
  Clark                              7074 1800

About Sierra Rutile Limited

Sierra Rutile is a leading, multi-mine mineral sands company, operating world-class assets and developing a portfolio of growth projects in the south west of Sierra Leone, with its primary commodity mined being natural rutile, a titanium feedstock. The Company has an established operating history spanning approximately 50 years and a resource mine life of another 50 years with one of largest natural rutile deposits in the world and a JORC-Compliant Mineral Resource for measured, indicated and inferred resources for the Sierra Rutile mine of over 866 million tonnes (as at 30 September 2015). Sierra Rutile expects to be the world's largest primary producer of natural rutile in 2016.

www.sierra-rutile.com

This information is provided by RNS

The company news service from the London Stock Exchange

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April 15, 2016 09:08 ET (13:08 GMT)

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