21 April 2014

Rusoro looks at London

03/09/2009 Robert Tyerman

Hugo Chavez, a friend of potential AIM entrant Rusoro Mining. Picture: Agencia Brasil

Hugo Chavez, a friend of potential AIM entrant Rusoro Mining. Picture: Agencia Brasil

Andre Agapov, boss of Canada-quoted Rusoro Mining, is thinking of dangling its Venezuelan gold prospects before London investors.

Rusoro, now listed at the equivalent of 22.5p on the junior Toronto Venture Exchange, claims potential resources of 17 million ounces of gold in the oil-rich South American republic’s El Callao, El Dorado and Cuyuni districts, with two million oz at 3.5 grammes of gold per tonne of ore in the proven and probable category. The company’s Choco project, sold to it by major South African mining group Goldfields in exchange for a 26.4 per cent stake, is set to show it has exceeded target production of 170,000 oz for this year at a cash cost, before capital and financing expenses, now down to $322 an ounce, against today’s market price of nearly $965.

Agapov, whose father Vladimir is chairman and major shareholder in Rusoro and on friendly terms with Venezuela’s controversial president Hugo Chavez, says the company aims to produce 500,000 oz of gold a year from Choco alone by 2012, but will need £125 million to progress its projects. He and Rusoro’s president George Salamis point out it has £34 million cash and £50 million convertible debt in place, some of it from Russian gold miner Peter Hambro Mining, and hint the company could seek access to the new Russo-Venezuelan development bank – but indicate they are also thinking of a London listing to test the UK equity market.

The entrepreneurial Andre Agapov, who says his own earlier dispute with the Thai government over the Bangkok Bank of Commerce was satisfactorily resolved, argues the Chavez regime is not as hostile to foreign mining companies as many, especially in the USA, believe. He acknowledges a long-running dispute over the future ownership of Venezuela’s Las Cristinas gold mine has done little to reassure overseas investors, but insists Rusoro has always been able to secure acceptable terms.

Tags: AIM, Fundraisings, New Issues

The Share Centre:

Cheaper fund investing has arrived at The Share Centre.
We don't believe it's fair to charge you extra just for holding funds.
So we don't. Find out more.
Capital at risk.

Growth Company Investor: free trial

Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.

Directors' Pay on AIM 2014

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1,044 AIM-quoted companies. The full report is available to order for £365 + VAT. Click here for more info

Cash Shells 2013

This annual guide provides a comprehensive overview of cash shells on the Main Market, AIM and PLUS landscape. The guide is available to order in PDF format for £350 (+VAT). More info

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

Blur made considerable progress over the period

All a Blur 17/04/2014

Online exchange developer Blur Group (AIM:BLUR) has released its Q1 metrics

Caza busy at West Copperline 17/04/2014

US explorer Caza Oil & Gas (AIM:CAZA) announced strong results from its wells in New Mexico.

Tags: Oil and gas

RPS gets clear 10/04/2014

Environmental specialist RPS Group (LSE:RPC) has purchased Clear Environmental Consultants in a deal worth £8.3 million.

Tags: Clean energy

Motive moving on tablet 10/04/2014

Television technology specialist Motive Television (AIM:MTV) has signed a deal to  stream Freeview on tablet computers.

Tags: Technology

Quindell wins Zurich Canada contract 08/04/2014

Insurance services outsourcing specialist Quindell (AIM:QPP) has won a contract with Zurich Canada.

Tags: Canada, Contract wins

Falkland pushing ahead 08/04/2014

Business group Falkland Islands Holdings (AIM:FIH) reported on a strong second half.

Tags: Falklands, Support services

More News