Date: Thursday 22 Mar 2012
South African iron-ore and tin miner Bushveld Minerals' debut on the AIM market is scheduled for Monday, January 26th.
The company, which has raised £5.7m through the issue of shares at 20p a share, will have an initial stock market capitalisation of around £57m.
The funds raised will go towards drilling costs to further explore its Bushveld Iron Ore asset, which comprises two licences covering 7,000 hectares: the Mokopane vanadiferous titanomagnetite (VTM) project and the Mokopane tin project.
The asset has a JORC (Joint Ore Reserves Commmittee - an Australasian industry body) compliant open-castable resource in excess of 600m tonnes from a 4.5 kilometre (km) strike length.
The company's Nominated Adviser rates the shares as a "speculative buy" at present, with the expectation that as the project is "de-risked" - i.e. the company gathers more data about the resource and how much it will cost to dig it up - the value of the company will "increase rapidly".
The broker says that the Mokopane iron ore deposit is located "within a prolific mining district which boasts extensive infrastructure, a rare thing for a junior iron ore explorer."
"There is plenty of upside in the iron story, with only approximately 4 km of a
known 12 km strike length being drilled and defined as a resource. The titanium
content, inherent in the iron ore is also a possible metal credit although
metallurgical test work is required to confirm this," the broker added.
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