LONDON South African gold explorer White Rivers Exploration (WRE) aims to raise up to 30 million pounds ($40 million) with a dual stock market listing in London and Johannesburg next year to help it to develop one of the world's largest bullion deposits.
WRE Executive Chairman Neil Warbuton told Reuters that the 11.5 million ounce reserve offers "huge upside potential" as one of the largest unmined high-grade gold resources in the world and that a dual listing will facilitate commercialization of the project.
"We think its an opportune time for a listing as the gold sector is interesting at the moment and the appetite is right," Warbuton said.
With the price of gold having climbed by about 27 percent this year, WRE aims to step up operations in South Africa's mineral-rich Witwatersrand Basin, where it owns 65 percent of a joint venture project with Harmony Gold (HARJ.J).
Warbuton said the proceeds of the initial public offering would fund the main project and a few others nearby. WRE is aiming to list around March, he said, adding that the money raised will be enough for about two to three years of projects.
The company said that a study of the joint venture deposit, which also contains uranium, showed gold recovery of more than 6.68 million ounces with production potential of up to 300,000 ounces a year.
The potential new mine would create about 2,000 jobs at full production, Warburton added.
($1 = 0.7492 pounds)
(Reporting by Zandi Shabalala; Editing by David Goodman)