OilVoice - Aminex Announces Placing and Open Offer

Aminex Announces Placing and Open Offer

Tuesday, June 30, 2009

Highlights
• Intention to place 116,330,998 new Ordinary Shares at Stg6p per share to raise Stg£6.98 million (approximately US$11.45 million) before expenses (the “Placing”);
• Intention to conduct a non-underwritten Open Offer to qualifying shareholders of up to 30,266,841 Ordinary Shares on the basis of 1 new Ordinary Share for every 8 existing Ordinary Shares held on a record date (to be determined) at Stg6p per share to raise up to Stg£1.82 million (approximately US$3 million) before expenses (the “Open Offer”);
• Proceeds of the intended Placing and Open Offer to fund Aminex’s exploration and development programme;
• The Placing and the Open Offer are conditional, inter alia, upon shareholder approval to be sought at an extraordinary general meeting of the Company;
• 2007 warrants to be extended for 12 months to August 2010; and
• Appointment of Astaire Securities as the Company’s London broker.

Proposed Placing and Open Offer
The Board of Aminex announces that Astaire Securities (as bookrunner) and Davy are arranging a Placing to raise gross proceeds of approximately Stg£6.98 million (approximately US$1.45 million) by way of a placing of 116,330,998 new Ordinary Shares of nominal value €0.06 each at a price of Stg6p each (“Placing Shares”) with new and existing institutional investors. The Placing will represent approximately 47% of the existing issued share capital.

The Board also announces its intention to give Aminex shareholders an opportunity to participate in the fundraising by way of a 1 for 8 Open Offer of up to 30,266,841 new Ordinary Shares of nominal value €0.06 each at a price of Stg6p each (“Open Offer Shares”) to raise up to an additional Stg£1.82m (approximately US$3million). Participants in the Placing will not have an entitlement to participate in the Open Offer in respect of their Placing Shares. Shareholders will be able to apply under the Open Offer for shares in excess of their entitlements. To the extent that excess applications are received, such applications will be scaled back pro rata such that funds raised from the Open Offer will not exceed Stg£1.82 million. Astaire Securities and Davy have reserved the right to place any unsubscribed Open Offer Shares for the benefit of the Company at the Placing Price of Stg6p, for a period of up to 7 days following the closing date of the Open Offer.

Relative to the closing market price per Ordinary Share on the London Stock Exchange on 29 June 2009 (the last business date prior to this announcement) of Stg8p, the issue price under the Placing and the Open Offer represents a discount of approximately 25%.

The net proceeds of the Placing of approximately Stg£6.2 million (after estimated expenses) are intended to be used, in conjunction with the Company’s existing cash resources, to facilitate Aminex’s exploration and development programme and to supplement working capital. The proceeds will primarily be used for exploration and appraisal activity in East Africa and in particular to finance the Company’s share of the Mikindani-1 well which is scheduled to be drilled on the Company’s Ruvuma licence in the third quarter of 2009 in partnership with Tullow Oil plc. The ultimate cost of this well to Aminex may be less than budgeted as the Company is in the process of seeking farm-in partners. Net proceeds of the Open Offer are intended to be used to advance the Company’s exploration and development programme in the USA and East Africa.

Brian Hall, Chairman commented:
“The oversubscribed placing being arranged by Astaire Securities and Davy will enable Aminex to move forward with its exploration and development programmes, commencing with the drilling of the first well in the Ruvuma Basin of Tanzania where a first well is scheduled to be spudded in the next three months. We are pleased to welcome Astaire Securities as our London broker which will be working alongside Davy, our existing Irish broker.”