Capital Markets Group at Charles Russell ends 2010 on a high with six transactions closing in one month

29 November 2010

The Capital Markets group at Charles Russell LLP has concluded a successful 2010 with six transactions for energy and mining companies in the past month. The group advised on two new AIM admissions; Zanaga Iron Ore Company Ltd, with a market capitalisation of $700 million, and CIC Mining Resources Ltd. It also acted on fund-raisings for existing AIM listed clients Mwana Africa plc, Arian Silver Corporation and Europa Oil & Gas (Holdings) plc Hybridan LLP and advised on a private placing for Semco Minerals plc.

Zanaga Iron Ore Company Limited
Charles Russell advised Zanaga Iron Ore Company Limited on its admission to AIM, and related placing of new and existing shares, raising a total of US$100 million (US$50m for each of the company and the selling shareholders). The company had a market capitalisation of $700 million on admission. Through subsidiaries, Zanaga owns 100% of an iron ore project located in the south west of the Republic of Congo. Xstrata plc currently holds, through one of its subsidiaries, an option to purchase a 50% plus one share interest in Jumelles Ltd, which is an operating subsidiary of Zanaga.

The Charles Russell team was led by partner Alexander Keepin with assistance from solicitors Joshua Hunt and Siobhan Ferguson and trainee Rachel Morris. Liberum Capital Limited acted as nominated adviser, sole bookrunner and broker to the transaction and were advised by Norton Rose LLP.

CIC Mining Resources
Canaccord Genuity was advised by Charles Russell regarding the introduction to AIM of CIC Mining Resources, a consulting and advisory company operating primarily in the mining and energy infrastructure sectors. Headquartered in the PRC, the company is also listed on the Canadian National Stock Exchange.

Partner Adam Carling, assisted by solicitor Joshua Hunt, advised Canaccord, as Nomad and broker to the company, on the admission. Pinsent Masons advised the company on the UK aspects of the admission.

In addition to these IPOs, Charles Russell advised on three placings for Mwana Africa plc, Arian Silver Corporation and Europa Oil & Gas (Holdings) plc.

Mwana Africa plc is a pan-African multi-commodity resources company, and its placing raised about US$8 million. The company’s principal operations and exploration activities cover gold, nickel and other base metals, and diamonds in Zimbabwe, the DRC, South Africa and Ghana. Following the placing, Mwana Africa plc has a market capitalisation of approximately £56 million. The team was led by partner Simon Gilbert, head of corporate finance, with assistance from solicitor Chris Evans. Maclay, Murray & Spens LLP acted for Ambrian.

Arian Silver Corporation
The placing and subscription of Arian Silver Corporation raised £3.9m with shares placed in the UK by new broker XCAP Securities. The company raised additional funds via a non-brokered subscription in Canada. Arian Silver is an emerging producer, focused on the Zacatecas State in the famous silver belt of Mexico. The company is listed on AIM and Canada's TSX-V Exchange. The team at Charles Russell was led by partner Adam Carling, assisted by solicitor Chris Evans. Macleod Dixon LLP advised the company on the Canadian elements of the placing and subscription and Memery Crystal LLP acted for XCAP Securities.

Europa Oil & Gas (Holdings) plc
AIM-listed Europa Oil & Gas (Holdings) plc, the oil and gas explorer, was advised on a placing to raise c. £1.5 million, conducted by finnCap. The company holds core producing oil assets in the UK, along with a wide range of exploration and appraisal projects in various stages of development in the UK, Romania, France and Western Sahara. The Charles Russell team was led by partner Mark Howard, with assistance from solicitor Tom Smitham. Charles Russell had also advised Europa Oil & Gas on its placing in April 2010. Field Fisher Waterhouse LLP advised finnCap Limited.

Hybridan LLP
Charles Russell  advised Hybridan LLP on a private placing for Semco Minerals plc. raising c. £1.7 million. Semco Minerals is an exploration company focussed on gold and exploration in the Surigao Gold District in the Philippines. Partner Mark Howard, assisted by solicitor Tom Smitham, advised Hybridan, as placing agent.

Simon Gilbert, head of Corporate Finance at Charles Russell, commented: “We are pleased to have seen the flow of successful deals continuing to increase throughout the year. 2010 is ending on a high note, a number of transactions have closed and others are expected to close before the year is finished. We have seen the natural resources sector in particular perform very well on AIM this year and we fully expect this to continue in 2011”.

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