Fundraising in Q4 2012
Equity funds raised in Q4 reached £168m, a 100% increase on Q3 but a 33% decrease from Q4 2011. This included a significant uplift in funding from new issues, to £13m. Over 2012, total equity proceeds reached just £599m – by far the lowest annual total since 2003.
Quarterly trend of funds raised on AIM — mining and all sectors
Source: EY analysis of AIM market statistics
Some of the few significant fundraisings completed
- Pan African Resources raised £51.8m by way of an ordinary shares rights offer. Proceeds will be put toward the acquisition of Evander Gold Mines from Harmony Gold Mining.
- Metals Exploration, a natural resources exploration and development company with assets in the Pacific Rim region, completed an equity subscription of £16m with Solomon Capital, Baker Steel Capital Managers and Runruno Holdings, providing enough funding to complete construction of the Runruno Project.
- East Africa-focused gold-mining company Shanta Gold raised £22m equity finance via a placing of new shares. This, combined with cash flow generated by its gold sales, will be used during the ramp-up phase of its New Luika mine in Tanzania.
- EMED Mining, a Europe-based minerals development and exploration company, received a £9m investment from RK Mine Finance (Master) Fund II LP.
- Vatukoula Gold Mines raised gross proceeds of £7m through the issue of new ordinary shares, representing around 17.01% of the enlarged share capital.
- ZincOx Resources raised £6.5m, enabling it to bring its first recycling plant to full production. It will also continue work on a second plant at the same site in Korea and take first-mover advantage to other territories.