Junior Australian gold mining and exploration counter Absolut Resources, which has an option to buy up to 75 per cent of Monterrico Metals' Pico Machay gold project in Peru, is contemplating a possible move to list its shares on AIM, writes Robert Tyerman.

Absolut, headed by president and chief executive officer Dan Noone and currently quoted at 26.75p on the Toronto Venture Exchange, must spend £880,000 to obtain 60 per cent of Pico Machay and another £880,000 to take its stake to 75 per cent. On the basis of present knowledge, the company Pico Machay could hold between 500,000 and seven million oz of gold and hopes to produce a preliminary resource calculation by June or July.

After raising £310,000 at lower prices, Absolut recently raised £1.5 million at 45p through a placing in Canada, handled by Sprott Securities and Dundee Securities. The company argues a new royalties regime in Peru, with a three per cent upper cap only triggered at revenues of £50 million or more, is unlikely to curb exploration enthusiasm.