ASCOT MINING PLC
ASCOT INCREASES FOCUS ON GOLD PRODUCTION AND CASHFLOW, REDUCES DEBT & DIVESTS
STAKE IN MINERAL HILL INDUSTRIES
London, 7 July 2012. Ascot Mining Plc (PLUS Markets: ASMP, XETRA®: AM3.DE, GXG: ASMP.DD, "Ascot", the "Company").
In response to current challenging market conditions for junior resource companies, which favour production and cashflow, and to conserve and maximize the use of management and financial resources, Ascot has agreed to divest its stake in Mineral Hill Industries ("Mineral Hill"), a Canadian based junior resource company, and has accordingly eliminated US$500,000 in associated debt. As announced on 27 January, the Company issued US$500,000 of Unsecured Convertible Bonds and associated warrants over 2,000,000 of its shares in connection with the acquisition of the stake, which as a result of this agreement, will be cancelled. The Company has agreed with the Convertible Bond holder, Terra Equity LLC, to exchange its financial obligation for the acquired stake in Mineral Hill with immediate effect. Nevertheless, Ascot will continue to maintain close management ties with Mineral Hill in the future, with a view to developing new projects in the Americas on a mutually favourable basis.
David Jackson, Ascot's CEO, states: "After much struggle, Ascot is now in an enviable position because it has a functioning gold mine and an operating mill. In recognition of current market sentiment, the Company believes that shareholders will benefit far more by the Company focusing its resources toward increasing gold production and cashflow. Management's attention must be directed to improving operations, including obtaining better recovery of gold and facilitating the recovery of silver, together with a concerted exploration effort in the highly prospective exploration concession at Chassoul".
The Directors take responsibility for this announcement.
For further information on this announcement please phone:
Ascot Mining Plc info@ascotmining.com www.ascotmining.com Alex Panko, Director +44 (0)7766 080 925 Daniel Stewart & Co Plc www.danielstewart.co.uk (PLUS Markets Adviser & Broker) Paul Shackleton Colin Rowbury +44 (0)207 776 6550
