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| Archipelago Resources eyes Australia listing to secure extra cash |
| 08/Jan/2010 Intellasia | smallcapnews.co.uk |
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| 8 Jan, 2010 - 10:10:16 AM |
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AIM listed Archipelago Resources has announced plans to dual list its shares on the Australian Stock Exchange during the first half of 2010 in order to tap into a broader base of potential investors.
Archipelago said it was making the move because of the "relative lack of liquidity on AIM for junior mining companies which reflects the shortcomings of the market making system compared to certain market driven foreign markets".
The company, which has been on AIM since 2003, also said it wanted exposure to the Australian market's strong interest in junior gold miners with substantive production. It noted that there was a limited number of peer companies in the Australian market and that a dual listing had the potential to attract a large number of private and institutional investors.
Yesterday, Archipelago agreed a provisional deal with three banks to provide a project finance facility of up to US$70 million for its Toka Tindung Gold Project in Indonesia, which is scheduled to start production in the fourth quarter of 2010 at an average rate of 160,000oz per year.
Today's move comes as the company plans to raise additional working capital by way of a private placement to institutional investors in the UK and Australia. The main purpose is to ensure that construction of Toka Tindung continues pending drawdown of the syndicated bank facility.
One hiccup in the plan is that ASX listing rules require all companies being admitted to have a minimum investor base of 400 shareholders. At present Archipelago has approximately 230 shareholders that comply with the ASX minimum parcel size of A$2,000. In order to meet those requirements the company is planning to undertake a further placing in March in Australia to attract at least 170 new shareholders.
http://www.smallcapnews.co.uk/article/Archipelago_Resources_eyes_Australia_listing_to_secure_extra_cash/8118.aspx
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