Companies: BAO   

Mozambique-focused Baobab Resources is considering new prospects – there and Down Under – to complement its Mundonguara gold and copper project.

AIM newcomer Baobab, put together by Australian entrepreneur ‘Jon’ Crowe and run by fellow antipodean managing director Ian Cullen, raised £1.8 million at 10p after expenses in February, with Westwind as broker and accountant Grant Thornton as nominated adviser. The company said that should be enough to take work on Mundonguara, which is now getting under way, to the ‘pre-feasibility study’ stage, with results expected in around three months.

While contractors should go underground at Mundonguara ‘within weeks’, Baobab, whose chairman Jeremy Dowler has fulfilled a variety of finance roles in the UK and elsewhere (including AIM-listed Platmin), is carrying out grass-roots work and geophysical analysis elsewhere in Mozambique. Crowe said the country, for years wracked by civil war, has been neglected by comparison with others in the present scramble for Africa and that the company is looking at iron ore potential in the Tete region and negotiating with major mining companies about possible joint ventures on two gold prospects.

Market sources also believe Baobab, in which RAB Capital has a significant stake, may be contemplating an ‘exciting’ gold play in Western Australia, although the company remains tight-lipped. At 11p, valuing Baobab at £5.23 million, the shares have speculative merits.

Baobab Resources	AIM	£2.53m	3.88p	-0.12p
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Newcomer - Baobab Resources			31/01/2007