Zimbabwe focused mineral exploration company African Consolidated Resources PLC has conditionally raised up to EUR 10 million in a placing of 70.77 million new shares with new and existing shareholders and a subscription for a further 1.95 million shares both at 13.75 pence per share.

The new funds of approximately EUR 9.5 million together with the existing cash resources as at October 31st 2009 of approximately EUR 1.8 million and cash flow from the recently announced Pickstone gold tailings retreatment project are earmarked to fund an aggressive programme of exploration activities across ACR’s portfolio of projects in Zimbabwe.

In particular, the company's intended exploration work program includes a drilling program at the Blue Rock gold project with the aim of defining a maiden JORC resource, drilling at the Pickstone Peerless gold project with the aim of expanding and upgrading the project's existing 513,000 ounces inferred JORC resource and a drilling program at the Giant Mine gold project to expand the existing 300,000 oz indicated and inferred resource.

ACR also plans drilling of the Chishanya phosphate project to define a resource at Baradanga Hill, pitting at the Horseshoe nickel project with the aim of defining a maiden JORC resource and the progression of exploration activities across its portfolio of projects including electromagnetic survey and drill target definition work at the Perseverance nickel project, selective diamond drilling at the Snakes Head platinum project and Cedric copper project and regional diamond exploration.

The company has continued to make representations to the Zimbabwean government that it is willing to cooperate in developing, in an orderly manner, a diamond mining operation at its claims on the Marange diamond fields and it remains the desire of the company to enter into arrangements to benefit both the company and the people of Zimbabwe.

ACR however notes the failure of various parties to comply with the ruling of the Zimbabwe High Court which confirmed the title of the company's subsidiaries to their claims over the diamond fields. It is aware that the state owned Zimbabwe Mining Development Corp has failed to vacate the diamond fields as instructed by the High Court and has entered into a joint venture arrangement with a third party with the aim of establishing a commercial mining operation. ACR is to continuing to seek the enforcement of the High Court ruling.

Mr Andrew Cranswick CEO of ACR said that "The proceeds of this placing enable us to accelerate our extensive drilling programme on what we believe could prove to be world class assets. The initial focus will be on gold and rock phosphate. The board believe that the business environment in Zimbabwe has improved dramatically over the last twelve months and will continue to do so, and African Consolidated remains well positioned for such recovery.”