Q Resources digs into African mining

Q Resources Plc (www.qresourcesplc.com) hopes to raise US$50 million-$100 mln through share sales in order to fund mining acquisitions in Africa, according to reports in Mining Review (www.miningreview.com), citing Bloomberg News. The Jersey-based company listed on the London Stock Exchange’s Alternative Investment Market (AIM) on 9 April after raising $4.6 mln.
According to the report, executive chairman Ivan Murphy told Bloomberg News in a telephone interview: “Q Resources seeks to make a sizeable acquisition in the coming couple of months.. The company plans to invest in iron ore, gold or uranium projects in Africa.”
Bloomberg reports that the company is focusing on deals in the Democratic Republic of Congo, the Central African Republic, Guinea and Mali. Gazprom Invest MENA will advise Q Resources on future transactions.
The company’s shares more than doubled in London at the end of last week, increasing 6.75 pence (10.5 US cents) to 12.75 pence (19.7 cents) and giving the company a market value of $10.8 mln.
According to the AIM announcement, Q Resources hopes to make a big acquisition, which would be deemed a “reverse takeover” and therefore require shareholders’ approval. After this it will be a holding company of an operating business and/or assets in the resources industry and it may make complementary or unrelated acquisitions in the sector. It aims to acquire and/or invest in up to 5 metals and/or minerals projects, but may also consider suitable acquisitions in the oil and gas sector. The company may also look in South America.
It aims to acquire operating – or close to operating – assets or licences but typically will not acquire other companies or early-stage operations or exploration activities. Q Resources intends to be an “active” rather than a “passive” investor, and will set up a management team for each project. It says it will be a value- and growth-oriented investor, targeting opportunities where it could add value through access to capital, contacts or by recruiting high quality personnel. “The Directors will aim to identify investment opportunities where the existing management and operational teams have the relevant experience and technical skills, but may lack the capital, financial experience or commercial acumen to maximise the potential of the target assets”, says the announcement.

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