Russian gold miner Peter Hambro Mining has raised £72 million gross (£68 million net) to reduce its short-term debt obligations.

Russian gold miner Peter Hambro Mining has raised £72 million gross (£68 million net) to reduce its short-term debt obligations.

The AIM-quoted company, chaired by Peter Hambro is particularly anxious to cut its exposure to $180 million (£124 million) of seven per cent “gold equivalent exchangeable bonds”, which are repayable at the option of the bondholders on or after 19 October this year.

Peter Hambro, which is also negotiating a paper takeover of its fully listed former offshoot Aricom, headed by Peter Hambo’s son and Peter Hambro Mining’s chief executive Jay Hambro, says pricing the placing awaits on a book building exercise, carried out by JP Morgan Cazenove.

The two companies are working together on a share exchange term, which would equate to a price of between 34p and 37p for each share in Aricom. The news has sent Peter Hambro’s shares tumbling 91p to 494p, against 2006’s £17.10 high and last October’s 169p low, while Aricom, which once traded above £1, has bounced 3.5p to 27.75p.