Extension to Bridging Loan

    RNS Number : 8173G
  Van Dieman Mines plc
  28 October 2008
   

    
    28 October 2008
    VAN DIEMAN MINES PLC (the "Company")

    Extension to Bridging Loan

    Van Dieman Mines Plc, (AIM:VDM), the AIM listed mining company with an alluvial tin and sapphire mine in Tasmania announces that it has
secured a further extension to its short term bridging loan from Galena Special Situations Master Fund Limited ("Galena"), as announced on
26 August 2008 (the "Bridging Loan").

    The extension is for an additional A$2,000,000 and has been granted on the same terms as the initial Bridging Loan and the further
extension of A$250,000 as announced on 15 October 2008 (the "Additional Bridging Loans").

    Due to current market conditions and the immediate cash requirements to meet the Company's current work programme the Company has
decided not to pursue, at this time, the proposed equity fundraising, referred to in the circular sent to shareholders on 2 July 2008. 
Instead, the Company and Galena are in advanced discussions to re-finance the original loan facility of up to �5,000,000 granted on 30 June
2008 by Galena, the Bridging Loan and the Additional Bridging Loans by way of a new convertible loan note of up to �6,500,000. Further
details regarding the proposed re-financing will be announced by the Company on entering into the relevant documentation.

    Related Party Transaction
    Galena is currently directly or indirectly interested in 18,455,000 Ordinary Shares in the Company representing an interest of 11.97 per
cent in the total voting rights of the Company. Galena is therefore a substantial shareholder of the Company and considered to be a related
party as defined under the AIM Rules for Companies (the "AIM Rules"). The grant of the latest extension to the bridging loan is classified
as a related party transaction for the purposes of the AIM Rules. Accordingly, the Directors consider, having consulted with Grant Thornton
UK LLP, in their capacity as the Company's nominated adviser, that the extension of the Bridging Loan is fair and reasonable insofar as the
shareholders of the Company are concerned.

    Enquiries

 VAN DIEMAN MINES PLC
 Mike Etheridge, Chairman                           Tel: +61 (0) 4 0870 8778
 Ron Goodman, CEO and Managing Director             Tel: +61 (0) 4 0808 3914
                                                     
 GRANT THORNTON UK LLP
 Gerry Beaney / Fiona Owen                          Tel: +44 (0) 20 7383 5100
                                                     
 FOX DAVIES CAPITAL LIMITED
 Richard Hail, Corporate Finance                    Tel: +44 (0) 20 7936 5230


This information is provided by RNS
The company news service from the London Stock Exchange
 
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