JOHANNESBURG (miningweekly.com) – Mozambican coal company Ncondezi on Thursday successfully listed on the Aim, starting out with a market capitalisation of £146,6-million.
The company had placed just under 29-million shares at £1,23 a share to raise about £35,6-million, which it was planning to use for the further development of its Ncondezi project, in the Tete province of western Mozambique.
The company’s share price rose to a high of £1,31 a share during early morning trade.
“We are delighted that the company's shares commenced trading on Aim. The company's main objective is to upgrade and extend the existing [Joint Ore Reserve Committee- (Jorc-) compliant] resource and to complete a fast-track bankable feasibility study (BFS) on the Ncondezi project,” CEO Graham Mascall commented in a statement.
The Ncondezi project, which comprised two of the four prospecting and exploration licences held by the company, was expected to produce ten-million tons a year of export quality thermal coal as from the second half of 2014.
The proposed openpit mine, which had a Jorc-compliant resource of 1,8-billion tons of coal, had an estimated 37-year mine life.
The company was hoping to fast-track the BFS for the project, which it expected to be completed by the second half of 2012.
It would also undertake further exploration work to upgrade the project’s existing resource, as well as to assess the potential of coking coal production.
Edited by: Mariaan Webb
Creamer Media Deputy Editor Online
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