Strategic Natural Resources (SNR), a vehicle set up to exploit natural resource opportunities in South Africa, has listed on AIM.

Strategic Natural Resources (SNR), a vehicle set up to exploit natural resource opportunities in South Africa, has listed on AIM.

As part of the flotation, Hichens Harrison & Co placed 10 million ordinary shares at 30p each raising £3 million. At admission there are 65 million ordinary shares in issue giving a market capitalisation of £19.5 million at the placing price.

The funds raised during the placing will primarily be used for the development of more than 9,000 hectares held by its subsidiary, Elitheni Coal at Indwe, located in the Eastern Cape Province of South Africa.

SNR intends to develop, own and manage a coal mining operation at Indwe, close to areas where energy supplies are falling well below current and projected supply.

Golder Associates Africa compiled a competent person’s report on the Elitheni Coal Project in accordance with the LSE’s Guidance Note for Mining, Oil and Gas Companies.

The Golder team of five people consisted of geologists and mineral economists and were lead by Willem van der Schyff, senior resource geologist and competent person adviser in terms of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC code).

As part of this report, Golder has independently assessed the exploration data of Elitheni by reviewing pertinent data, including mineral rights data, drill hole core, drill hole logs and assay results. Golder completed the report within budget and on time.

Hammonds, UK, the legal adviser to the company, introduced Golder to SNR. The introduction was based on the advisers’ previous activities when acting for mining companies in relation to listings on stock exchanges, including AIM.

Hammonds also introduced South African law firm Webber Wentzel Bowens (WWB) to the firm, providing legal advice. The team was led by a partner in the corporate services department, Angela Simpson.

It also consisted of senior associate in corporate services Dirk Wessels, associate in mining and minerals department Rita Claasen and partner and head of the mining and minerals department Manus Booysen.

WWB also advised on particular aspects of South African mining and minerals legislation and regulation.