28 November 2015

Rusoro looks at London

03/09/09 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

Cash Shells 2015

Published in September 2015 this annual research report provides a comprehensive overview of cash shells on the Main Market, AIM and PLUS landscape. Order your copy today


Superb investment toolkit for private investors

SharePad is the new web-based service from ShareScope. Easier to use and more powerful. Perfect for tablets, Macs and Windows PC. Covers ALL your investment requirements.

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 2015

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1000+ AIM-quoted companies. The full report is available to order for £385 + VAT. Click here for 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

Be Heard takes first step towards building a new digital ad network 25/11/15

Advertising industry veteran Peter Scott has returned to the stock market as Executive Chairman of Be Heard (AIM: BHRD). The company has just raised £5.5 million and acquired digital marketing and analytics business, Agenda 21. This is the first step on a journey towards building a new network of digital marketing agencies.

German work ethic is good news for Sirius 23/11/15

Sirius Real Estate (AIM: SRE) interim results show the company on track for a shareholder return in the mid-teens for 2015 as a whole. Net asset value rose by 5.5 percent in the first half, and adding the dividend makes a 7.3 percent return for this period. Further property acquisitions and the refinancing of a significant loan will help boost future periods.

McKay sees a solid outlook for SE property 18/11/15

Property investor McKay Securities (LSE: MCKS) has reported a good set of results for the half year to September. Having raised £130 million in new debt and equity last year, the company has been putting these funds to work.

Starcom looks for new products to unlock growth 18/11/15

Starcom (AIM:STAR) has been a very disappointing stock since it floated on AIM over two years ago. Based in Israel, it has a range of tracking products which should be a good play on the internet-of-things theme.

AB Dynamics motors ahead 12/11/15

Automotive testing system manufacturer AB Dynamics (AIM: ABDP) has produced an excellent set of results for the year to August. Revenue grew by 19 percent and operating profit was up 41 percent. The company has benefited from rising R&D spending by the automotive industry and is reaping the rewards of having built some strong relationships with its leading companies.

Falanx looks to benefit from cyber crime 09/11/15

The recent data breach at Talk Talk where thousands of customers had their personal information stolen has had a big negative impact on the company. However it also serves to highlight the opportunities for companies specialising in poviding cyber security.

More News