Welshpool-based gold explorer Allied Gold Ltd has announced the commencement of trading of its securities on London's Alternative Investment Market.
Welshpool-based gold explorer Allied Gold Ltd has announced the commencement of trading of its securities on London's Alternative Investment Market.
Mirabaud Securities Ltd is acting as broker with Beaumont Cornish Ltd as nominated advisor for Allied Gold's AIM listing.
Allied Gold's move to list on the AIM is part of a trend of a growing number of Western Australian companies looking at alternative markets to raise capital and expand their institutional shareholder base, as WA Business News reported recently.
Over 20 WA companies are listed on the AIM, including Aztec Resources Ltd, Consolidated Minerals Ltd, Palandri Ltd and Cape Lambert Iron Ore Ltd (which intends to list tomorrow).
Last month, Allied Gold secured a $34.3 million loan facility to complete its project financing package for the company's Simberi oxide gold project offshore Papua New Guinea.
The loan facility was in addition to a total of more than $50 million raised in new capital by Allied Gold this year to take Simberi through to project commissioning in the first half of next year.
Allied Gold's main assets are located in the eastern Papua New Guinea Tabar Islands, a group of Islands consisting of the Simberi, Tatau and Big Tabar Islands.
Cape Lambert Iron Ore Ltd recently announced plans to list its shares on AIM on May 4 2006.
At market close, shares in Allied had fallen 1.5 cents to 60 cents.
Below is the edited announcement:
Allied Gold Limited (ticker "ALD") ("Allied Gold" or the "Company"), the ASX listed Company developing the Tabar Islands gold project in Papua New Guinea, today announced the commencement of trading of its securities on London's Alternative Investment Market (AIM).
Mirabaud Securities Limited is acting as broker with Beaumont Cornish Limited as nominated advisor for Allied Gold's AIM listing.
Allied Gold's main assets are located in the eastern Papua New Guinea Tabar Islands, a group of Islands consisting of the Simberi, Tatau and Big Tabar Islands. The Company is focused on the near term development of its key asset, the 100% owned Simberi Oxide Gold Project, as well as exploration for gold and copper on the adjacent Tatau and Big Tabar Islands.
Allied Gold joins AIM with £21 million (A$51.7 million) of funds previously raised in Europe and Australia. The Company will use the funds to progress construction and commissioning of its wholly owned Simberi Oxide Gold Project. Funds will also be allocated to the continuation of exploration and evaluation of identified mineralised targets on the Tatau and Big Tabar Islands and for the acquisition of additional assets.
Ongoing exploration work by Allied Gold has confirmed gold resources on Simberi Island comprising 46.8 million tonnes @ 1.51g/t for 2.27 million ounces of gold. Annual treatment of 2 million tonnes of ore producing 75,000 ounces of gold is on target to commence in the second quarter of 2007.
Commenting on the London listing, Allied Gold's Managing Director, Mr Wayne Loxton, said:
"The introduction to AIM will raise Allied Gold's profile in Europe and widen our shareholder base outside Australia. Our London AIM quotation and the establishment of a European presence will significantly improve our profile as we make the transition in mid 2007 to gold producer. The first step in Allied's growth strategy going forward is to bring the Simberi Oxide Gold Mining project into production. The anticipated robust project cash flow will provide a foundation for continued exploration on Simberi and to explore for both gold and base metals throughout the Tabar Islands Group."
The Tabar Islands Gold Project
The Tabar Islands lie in the eastern part of the New Ireland Province in Papua New Guinea, covering an area of approximately 270 square kilometres. Modern exploration of the Tabar Islands commenced in 1981 after minerals title was awarded to Nord Pacific Ltd.
Allied Gold holds 100% interests in a granted mining lease on Simberi Island and an exploration licence which covers the remainder of the Tabar Islands Group. Allied originally acquired control of these licences through a Plan of Arrangement which was completed in September 2004. Pursuant to the Plan, Allied acquired full ownership of Nord Pacific Ltd whose principal asset was a 50% interest in the Simberi Mining Joint Venture (SMJV) and a 99% interest in the Tabar Exploration Joint Venture (TEJV) with Toronto listed Simberi Gold Corporation. Subsequently, Allied bought out Simberi Gold Corporation's interest in these joint ventures and it now owns 100% of the Simberi Oxide Gold Project.
Simberi Island - Oxide Gold Project - Development
All of the currently identified gold resources and reserves are located on Simberi Island, the northern most of the mineralised islands forming the Tabar Island Group. Allied Gold is the sole owner and operator of the Simberi Oxide Gold Project and the Company is committed to progressing project development and commissioning as rapidly as possible.
During April 2005, Allied Gold mandated RMB Resources Limited ("Rand") to provide project finance for the development of the Simberi Oxide Gold Project and Allied recently announced the acceptance of a Credit Approved Project Finance Facility arranged by Rand. The Company believes that the relationship with Rand is a major step forward for the fast-track development of the project, particularly in light of Rand's demonstrated commercial and technical operations expertise gained from its existing presence in PNG.
Based on recent Feasibility Studies, Allied Gold proposes to develop open-cut mining operations and transport ore to a centrally located processing facility via an aerial ore conveying system and by trucking ore from nearby satellite pits.
Allied Gold has landowner, local community, Provincial and National Government support and has permits and approvals already in place to facilitate the commencement of production in 2007.
Directors and Senior Management
Mark Caruso - Chairman
Mark is a Director of Simto Australia Pty Ltd which is involved in mining, earthmoving and civil engineering construction earthworks. He is also a Director of Mineral Commodities Limited (since September 2000) and CI Resources Limited (since October 2003). Former Directorships of public listed companies in the last 3 years are Fortescue Metals Group Limited (June 2002 until November 2003) and ORT Limited (August 2003 until August 2005).
Wayne Loxton - Managing Director
Over the last twenty six years Wayne has held executive positions for a number of companies including Managing Director of three publicly listed companies. Wayne's experience lies within the gold and base metal industries in both underground and open-pit mining operations in North America, Ghana, Philippines, Indonesia, Papua New Guinea, Zimbabwe and Fiji. Wayne is a Mining Engineer with extensive project development and operations experience. He has also completed project finance agreements and implemented hedging strategies and capital raising programs.
Jeff Moore - Non-executive Director
Jeff has more than 20 years of exploration and mining industry experience for Australian publicly listed companies since graduating as a geologist in Western Australia. During the last 15 years he has held board positions for several ASX listed companies gaining exposure to a range of commodities. Between September 1989 and January 2004, Jeff was a Director of Mount Burgess Mining NL.
Gregory Steemson - Non-executive Director
Gregory is a qualified geologist and geophysicist with an extensive background in exploration, development and management of mining projects. He is also a Director of Mineral Commodities Limited (since January 2001) and Sandfire Resources NL (since June 2003). Between June 2002 and July 2003, Gregory was a Director of FMG.
Ross Hastings - Project Manager
Senior Project Manager Roles at Ok Tedi and Misima Gold Mines in PNG from 1983 to 1994. Ross has been involved with the Tabar Islands Project since 1996.
