Resource groups plot to tap AIM backers

02/07/2010 Robert Tyerman

After a tough time for new stock market issues, several companies in the resources sector are making preparations to float on London’s junior stock exchange.

Private US energy technology developer Bixby Energy Systems, whose patent-pending Bixby Process converts coal into clean-burning energy, is understood to be embarking upon a $25 million (£16.6 million) funding ahead of a possible AIM launch in September.

The Minneapolis-based company uses the Bixby Process to ‘super-heat’ coal to produce synthetic natural gas and cites evidence that this produces 65 per cent fewer carbon emissions from power stations than conventional coal-based electricity generation. Bixby Energy says the next stage of its process can also produce semi-refined crude oil for less than $30 a barrel, against today’s $77-plus price.

Founded nine years ago by serial entrepreneur Robert Walker, now chief executive officer and president, Bixby Energy has 1,800 shareholders and has so far raised $40 million. A US float is also on the cards.

Elsewhere, PLUS-quoted Oracle Coalfields is girding itself for a long-mooted move to AIM after raising £1 million at 3p through Libertas Capital to finish a bankable feasibility study on its major Thar lignite (brown coal) deposit in Pakistan’s Sind Province. Developing Thar, with a proven reserve of 371 million tonnes and potential resources of 1.4 billion tonnes, will cost much more and so an AIM move makes sense.

Also studying a possible AIM foray is Aussie-quoted uranium play Aura Energy, with an exploration target of between 800,000 and 1.2 million lbs of uranium oxide at its Storsjön project in Sweden. Headed by managing director Dr Bob Beeson and trading Down Under at the equivalent of 13.5p, the company has no less ambitious plans in Mauritania and Niger in West Africa and in Australia itself at the Gunbarrel, Wondinong and Porcupine projects.