China Africa Resources, which is developing the Berg Aukas lead, zinc, vanadium project in Northern Namibia, is set to join Aim on 1 August.
China Africa Resources has been set up by Aim-quoted Weatherly International, which is expected to have a 25% shareholding after admission, and 65% shareholder East China Mineral Exploration and Development Bureau to develop the Namibian asset and a full feasibility study will be started after the company joins Aim. The study will cost $3m and should be complete by the end of 2012. The mine will be brought back into production if it is deemed to be commercial.
The plan is to raise £4.7m at 40p a share and the company will be valued at £9.2m. The free float of less than 10% will be held by Weatherly shareholders.
Longer-term, the company may buy other assets from its shareholders.
Download the June 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFJuly2011_22.pdf
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