Ascot Mining has issued £3 million convertible loan notes ahead of a planned move from PLUS-quoted to AIM.

Central America-focused Ascot Mining has issued £3 million convertible loan notes ahead of a planned move from PLUS-quoted to AIM.

Gold and manganese AIM play Red Rock Resources is subscribing to £1.5 million of the 10 per cent 2015 loan notes, which are convertible into Ascot shares at 20p, half their present PLUS-quoted level, and Ascot has secured another £700,000 through the exercise of warrants.

Ascot says it intends to use the money raised to complete the acquisition of the Chassoul gold mine, 76 km from Costa Rica’s capital San Jose. Chief executive officer David Jackson says the company wants to accelerate production from Chassoul to 1,200 oz of gold per month, consolidating its position as ‘the leading gold producer in Costa Rica’, while bulls suggest Ascot could in six months be generating operating cash flow of around £20 million a year.

Shares in Ascot have now risen from a 12-month low of 15p to 40.5p (with a 5p spread), to value the company at £16.5 million. The company says it has begun talking to potential nominated advisers to facilitate a move to AIM ‘as soon as practically possible’.