ZZL Zeehan Zinc

    RNS Number : 8202K
  Zeehan Zinc Limited
  29 December 2008
   

    29 December 2008


    Zeehan Zinc Limited
    ('Zeehan Zinc' or the 'Company')

    Issue of Equity


    Zeehan Zinc announces that it has today received payment of �3,083,000 (approximately A$6.525million) from Creat Group (HK) Limited
("Creat Group") in accordance with the Share Subscription Agreement (refer details below).  The Company will now proceed with the issue of
the Subscription Shares to Creat Group.


    Share Subscription Agreement

    The Company announced on 14 November 2008 that it had entered into a Share Subscription Agreement with Creat Group to regulate the
acquisition of up to 308.3 million ordinary shares in the capital of the Company at 1 pence per share ("Subscription Shares") to raise
�3,083,000. 

    The Share Subscription Agreement, as amended, included the provision that completion would occur within 25 business days after the AGM
("Completion") and that Zeehan Zinc will issue the Subscription Shares to Creat Group on receipt of payment.

    Use of funds

    The Company intends to utilise the funds raised in the following manner:

    *     Around A$4.0 million to fund its exploration plan and budget focussing on nickel; and 
    *     The remaining amounts to meet its ongoing overhead and administrative liabilities.

    Completion 

    Following this issue of equity, Creat Group's shareholding in the Company will increase to 317,300,000 ordinary shares with voting
rights representing an increase from 6.2% to 70.0% of the entire issued share capital of the Company. As such, the interest of the existing
shareholders will be significantly reduced from 93.8% to 30% of the entire share capital.  

    The total issued share capital in the Company following the issue of shares to the Creat Group will be 453,276,674 ordinary shares with
voting rights and the Subscription Shares will, when issued, rank pari passu in all respects with the existing issued ordinary shares.
Application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM and it is expected that
admission will become effective and that trading in the Placing Shares will commence on or around 2nd January 2009.



    For further information please visit www.zeehanzinc.com or enquire to:


Zeehan Zinc plc                                                  c/o Bankside
Tad Ballantyne                                                     Tel: +44 (0)20 7367 8888
 
 
Libertas Capital                                                 Tel: +44 (0)20 7569 9650
Jakob Kinde, Anthony Rowland
 
 
Bankside Consultants                                       Tel: +44 (0)20 7367 8888
Simon Rothschild, Oliver Winters





This information is provided by RNS
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