Centamin raises fresh finance

14 December 2001

Australian mining venture Centamin Egyptis raising£2.7 million sterling ($3.9 million) ahead of a planned listing on the London Stock Exchange's Alternative Investment Market (AIM). The funds will be used to finance a final set of feasibility studies that will enable the company to raise bank loans for the development of gold mines in the Sukari concession in the Eastern Desert. The company in November received official confirmation from the government that its declaration of commercial discovery in Sukari had been approved (MEED 9:11:01).

Centamin estimates that Sukari has recoverable reserves of 1.66 million ounces of gold, representing 25 per cent of the strike length of the ore-bearing Sukari Hill. The company says it expects to add to these reserves through further drilling. Plans call for the project to produce 120,000 ounces a year of gold in the initial phases.

London-based Williams de Broeis acting as adviser and broker for the AIM listing, which is scheduled to be completed by the end of the year. Centamin, headed by Egyptian-born Sami el-Raghy, is also listed on the Australian Stock Exchange.

Companies working on the project include SNC Lavalinof Canada, KC Dodd Consulting Engineers, Dorsch Consultof Germany and the local Environics.

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