ER Development Corporation has today been admitted to the AIM market after raising £40m to develop its copper mining project.
The company is sitting on an estimated 725,000 tonnes of copper in the Philippines, with prices of the metal currently at an all-time high.
Calculations suggest the current value of its mines in that region is US$485m (£307m) based on a copper price of $3/lb.
The price of copper currently stands at US$4.00/lb.
Company chairman and chief executive Mitch Alland has been involved with copper mining for 23 years, with a career at the World Bank and International Finance Corporation.
The £40m investment comes despite the company’s directors holding just 2.12 per cent of the enlarged share capital. An adviser commented: “It is a testimony to Mitch’s ability and the strength of the project that he has been able to raise this much.”
Fox-Davies Capital is the lead financial adviser and broker for the mining company, with nominated adviser Beaumont Cornish.
The mining project is situated on an island close to China, the world’s largest copper importer. By 2015, China is forecast to account for 42 per cent of global copper consumption, placing the project in an ideal location. Alland added: “The increasing global demand for copper represents a significant opportunity for CDC.”