A gold miner is to list an exploration project on Aim in a further sign that junior mining companies are returning to the London market.
Cora Gold will raise £3.45m to give it a market capitalisation of around £9m when it floats today. Most of the proceeds will go towards surveying its Sanankoro deposit in Mali, West Africa.
Cora will be drilling in the same Yanfolila gold belt as fellow Aim-listed miner Hummingbird, which has agreed to put some of its exploration targets into Cora’s portfolio. In return, Hummingbird will own 33pc of Cora’s shares. Management will hold 17.74pc of the company, while City Financial will come on board with a 7pc stake.
Jon Forster, chief executive, said Cora could take advantage of more than five years’ worth of surveying left by South African giant Gold Fields and London-listed Randgold when they previously studied the terrain.
“Our strategy is to now take that existing data and build on it by exploring further along the 8.7-mile footprint and try to demonstrate the scale of the deposit,” he said.
Hummingbird is set to begin producing gold from Yanfolila this year.
Cora’s nominated adviser is Allenby Capital and the joint brokers are Mirabaud Securities and Beaufort.