Placing of new ordinary shares to raise GBP2.76 Million
London, Mar 26, 2012 AEST (ABN Newswire) - Baobab Resources plc 
LON:BAO), the iron ore, base and precious metals explorer with a portfolio of mineral projects in Mozambique is pleased to announce that it has raised GBP2.76 million (before expenses) through a placing by Shore Capital Stockbrokers Limited of 23,000,000 new ordinary shares of 1p each (together the "Placing Shares") at a price of 12p per Placing Share (the "Placing"). The Placing utilises the full extent of Baobab's existing authority to issue shares for cash.
The proceeds of the Placing will, primarily, assist the Company to fund work on the Tete Pre-Feasibility Study ("PFS") on its core iron ore assets in Mozambique.
Jeremy Dowler, Chairman of Baobab, commented:
"We are pleased to welcome the new shareholders to the register and this funding will allow us to advance our Pre-Feasibility Study on our flagship Tete project strategically located in the emerging mining hub of the Tete province, Mozambique, one of Africa's fastest developing economies, with unique access to existing and expanding power and infrastructure as well as abundant coal reserves."
Ben James, Baobab's Managing Director, added:
"Following the Scoping Study, announced in November last year, which established the compelling economics of a vertically integrated mine-mouth smelting operation to produce a higher value, higher demand, pig iron product for distribution and sale in the growth regions of Asia, and the expanded resources at the Company's Tenge prospect, Baobab is now able to press ahead with the Pre-Feasibility Study, engaging internationally respected independent consultants to cover off key components under the management of a highly experienced in-house technical team. Baobab looks forward to keeping investors up to date as the PFS develops over what is promising to be a very exciting year for the Tete Project."
Admission and dealings
The Placing Shares will rank paripassu in all respects with the Company's existing issued ordinary shares and will be equivalent to 10.8% of the enlarged issued share capital. Application will be made for the admission of the Placing Shares to trading on AIM and it is expected that admission will occur and that dealings will commence at 8.00 a.m. on 2 April 2012.
For the purposes of the Financial Services Authority's Disclosure and Transparency Rules, the Company announces that following the issue of the Placing Shares, the Company will have 213,137,900 Ordinary Shares in issue.
The Company has no ordinary shares held in treasury. The total number of voting rights in the Company will therefore be 213,137,900. This figure may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.
About Baobab Resources plc
Baobab Resources plc (LON:BAO) is a Mozambican-focused explorer with a large landholding in the central north of the country. The company's flagship project is the Tete iron ore deposit.
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