VDM Van Dieman

    RNS Number : 0084C
  Van Dieman Mines plc
  26 August 2008
   

    
    26 August 2008
    VAN DIEMAN MINES PLC (the "Company")

    Strategic Investor Provides 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
today secured additional financial support from its strategic partner and major shareholder, The Galena Special Situations Master Fund
Limited ("Galena"), for a short term bridging loan for an amount of �750,000 (the "Loan"), which will be used for general working capital
purposes.

    The Directors expect to draw down the Loan over the next few weeks. The loan carries an interest rate of 3% above the 3 month London
Interbank Offered Rate payable quarterly in arrears. The Loan is repayable on demand.

    This Loan is in addition to an investor agreement and loan facility agreement with Galena that was announced on 30 June 2008 for up to
�5 million (the "Original Facility") that incorporated an immediate loan facility of �3 million. As previously reported, the Company has
since drawn down the �3 million under the immediate facility. 

    It is anticipated that the Loan will be repaid out of the proceeds of a private placement that the Company has announced it intends to
undertake before 31 December 2008.

    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 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 terms of the Loan are 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       Tel: +61 (0) 4 0808 3914
 Director
 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



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