Moto Goldmines (MGL-T, MOE-A) is looking to enlist the European investment community in its drive to build itself into a gold producer.
The Perth-based exploration junior with a significant gold deposit in the northeastern part of the Democratic Republic of Congo (DRC) has applied to list its common shares on the London Stock Exchange’s AIM market.
The move comes on the heels of Moto’s recent march up the market.
It’s shares had been trading in the low $3 range for much of the last half of 2005, but as news of strong infill drilling results came out in early February, the market took notice.
Company shares, already on a steady incline since January, turned steep on the drill results, reaching a high of $8.10 on Feb. 20.
On Wednesday Feb. 22 shares were trading at $7.25 on roughly 40,000 shares.
In a statement Moto’s Chairman, Sam Jonah said the move is another step toward transforming Moto from an exploration company and into a gold mining company.
Additional European investors, Jonah says, will “reinforce Moto’s presence in this significant market.”
Moto plans to have its feasibility study completed by mid-2007, with project development funding coming from the North American and the European markets.
It anticipates it will be admitted to AIM on 24 March 2006.
Moto’s gold fields are located on the Moto greenstone belt, which is half of the Kilo-Moto gold belt. The Kilo portion of the belt is controlled by AngloGold Ashanti (AU-N, AGG-A).
Currently, total resource stands at 33.4 million tonnes of ore with an average grading of 2.5 grams gold for a total resource of 2.8 million oz.
An additional 8.1 million oz. of gold is in the inferred category, drawn from a source of 92.8 million tonnes with an average grade of 2.7 grams gold.
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