The latest in a recent spate of fundraisings in the junior miner sector comes from Papua Mining PLC, a UK group focused on the exploration for, and development of, gold and copper deposits in Papua New Guinea.
The company has placed 15.94 million shares with institutional and retail investors at 44 pence each, raising approximately GBP 7 million before expenses, and it expects its shares to start trading on London’s Alternative Investment Market on March 2.
Papua Mining holds two exploration licences in the West New Britain province on the Papua New Guinea island of New Britain, one of which is under renewal, and one exploration licence in Ambunti which is located in the East Sepik province on the mainland. Papua New Guinea has numerous world class copper-gold deposits.
The company has also applied for a further 11 licences which would result in a total exploration area of 4,394 square kilometres.
The two exploration licences in West New Britain surround three areas currently being explored by Coppermoly Ltd in a joint venture with Barrick Gold Corp, the world’s largest gold producer.
The new funds are earmarked for an exploration programme Papua Mining has started already, and which includes up to 12,000 metres of drilling over the next two years.
The placing shares represent 50 percent of the enlarged capital.
The management is led by chief executive Hugh McCullough, and includes technical director Kieran Harrington and country manager and chief geologist Chris Muller.
McCullough and Harrington were both executive directors of Glencar Mining, an AIM listed company with a record of deposit recovery in West Africa, which was acquired by Gold Fields in 2009. Muller was the senior onsite-geologist on the major Wafi-Golpu project in Papua New Guinea.
The board is led by non-executive chair Michael Joliffe, a founding shareholder and former CEO of Burren Energy.
On admission, the board will comprise of Joliffe, McCullough, Harrington and Gunnar Palm, a partner at Richmond Park Partners LLP, an independent merchant bank providing advisory, capital markets and risk and asset management services. Prior to Richmond Park Partners, he was co-head of HSBC Global Banking, Coverage and Client Management for EMEA.
Papua Mining will recruit a further non-executive director by March 31 2012.