Sterlite invests in First Dynasty

A US$7.5-million private placement by Sterlite Industries will enable First Dynasty Mines (FDM-T) to shore up its treasury and fund its projects in Armenia.

The Singapore-based company currently produces 25,000 oz. gold from its Armenian operations, and hopes to boost this to 160,000 oz. annually through a US$35-million expansion program. First Dynasty plans to use US$500,000 to repay a debt owed to Ivanhoe Capital, its major creditor. The balance will be used in Armenia.

As part of the private placement, Anil Agarwal, chairman of Sterlite Industries, was appointed chairman of Firsty Dynasty. The company also announced it may move its headquarters to London, England.