London Mining starts trading on AIM of London Stock Exchange
Sunday, 08 Nov 2009
It is reported that London Mining has been admitted to the Alternative Investment Market of the London Stock Exchange and will start trading.
London Mining, which also has a listing on the Oslo Axess market in Norway, announced its intention to list in London in September to boost liquidity and gain exposure to an investor community proficient in mining and a market where the mining sector enjoys extensive research coverage.
In conjunction with the admission, it has placed 37.2 million shares at GBP 1.924 per share with over 30 recognized institutions. As was previously announced, Liberium Capital Limited will act as nominated adviser and joint broker together with GMP Securities Europe.
Following admission, Caspian Investments, Benbrack Charkit and Naturaliste Holdings will own 18.32%, 4.56% and 1.19% of London Mining respectively.
Mr Graeme Hossie CEO of London Mining said that "London Mining's admission to AIM, combined with today's placing of shares into the market from pre existing shareholders gives us both the liquidity and exposure we need in a market that understands mining."
The potential iron ore production capacity of London Mining’s four principal iron ore assets in Sierra Leone, Saudi Arabia, Greenland and China currently amounts to 0.4 million tonnes per annum with London Mining planning to expand it to 14 million tonnes per annum by 2014 and then to 20 million tonnes per annum in 2018.
Mr Hossie said that "As we move our principal projects forward and progress our JORC delineation program we expect to be able to communicate operational progress regularly to the market. Our objective is to become a mid tier supplier of bulk commodities to the global steel industry, with a particular focus being directed towards iron ore."
With a consolidated cash resource of USD 230 million, the group believes it is fully funded to reach all of its key milestones, primarily the development of the Marampa Mine in Sierra Leone to the first phase of production, currently slated for next year, as well as its Wadi Sawawin project in Saudi Arabia through to bankable feasibility study due later this year and the Isua project in Greenland through to bankable feasibility study by the end of 2010.
