NEWLY LISTED The newly listed company's non executive director Aamir Quraishi, CEO David Sumner and chairperson Jide Zeitlin
JOHANNESBURG (miningweekly.com) – Emerging Peruvian gold and silver producer VI Mining on Friday started trading on London’s NEX Exchange Growth Market.
The company completed a share placement, which raised £5.36-million in gross proceeds. It issued 106.95-million ordinary shares of no par value at an admission price of £5 each.
VI Mining is focused on the development and operation of gold and silver projects in Peru. The company has contracted to acquire two former working gold and silver mines in the La Libertad region in the northwest of Peru.
The projects are Minaspampa, which is currently suspended, and Rosario, which is currently on care and maintenance. Both projects are expected to benefit from further exploration, mine development and optimisation over the next year, before they are restarted.
Further, VI Mining owns two processing (tolling) plants in the Oro Pesa and Ximenita de Casma concessions, in the Arequipa and Ancash regions, with licences to process up to 350-million tonnes a day.
VI Mining CEO David Sumner commented that the listing provides a solid platform from which to grow the company and attract long-term institutional investors and potential partners.
VI Mining chairperson Jide Zeitlin added that the listing marks a significant milestone for the company, positioning it for success in “one of the most prolific precious metals producing regions” in the world.
Further, “VI Mining has an innovative and sustainable business model, using nondilutive cash flow from Minaspampa, Rosario de Belén and its two tolling plant projects to fund brownfield development and further exploration.”
Peru is the largest gold producer in South America and the sixth largest in the world, with around half of Peru’s gross domestic product being derived from mining activities.
The Peru government in 2012 introduced laws to better regulate the sector, which has allowed small and artisanal mining to become a dynamic growth sector for investors.