MOD Resources has commenced the process to seek a dual listing of the company’s shares on the Standard Segment of the Main Market of the London Stock Exchange.
It is expected that the LSE-listing will take place following the completion of the company’s transaction with Metal Tiger, whereby MOD Resources will consolidate 100% ownership of the T3 copper project and gain rights to acquire all joint venture exploration assets between the two companies in Botswana.
It is therefore anticipated that the LSE-listing process will complete and MOD Resources shares will begin trading on the LSE in Q4 2018.
“The decision to seek a listing on the London Stock Exchange, represents an important strategic milestone for MOD Resources,” comments MD Julian Hanna.
“The LSE has a long history of successful listings of companies with African mining assets and we expect the listing to raise the profile of MOD Resources and open up access to a wider pool of investors.
“We look forward to building support for MOD Resources amongst the UK and European investment community as we continue to grow the company,” he continues.
The LSE-listing forms an important part of MOD’s strategy ahead of the raising of construction finance for the T3 copper project.
It positions MOD Resources for the next stage of its development by raising its international profile and facilitating the future participation of a broad spectrum of UK and European investors.
The company has already been successful in attracting support from UK and European investors and the LSE-listing is expected to significantly broaden the investor base available to MOD Resources to include institutional and other investors not currently able to invest through the Australian Stock Exchange (ASX).
The London market has a deep understanding of African natural resources projects and it is expected there will be strong support for the company once dual listed.
“The Board considers the timing of the proposed LSE Listing to be right during this period of rapid activity and growth,” notes MOD Resources chairman Mark Clements.
There are currently few opportunities on the LSE for UK and European investors seeking exposure to copper and MOD considers their T3 project and highly prospective exploration assets present a compelling investment opportunity for the London market.
On completion of the LSE-listing, MOD believes it will be the fifth largest London listed junior copper focused company.
MOD will retain its existing ASX listing as the company’s primary listing.
MOD is well funded for its current work programme and is not currently planning to raise equity capital at the time of the LSE-listing MOD has appointed Tamesis Partners as its financial advisor and Memery Crystal as its legal adviser in relation to the LSE-listing, both of whom have advised extensively on the London listing of companies with African mining projects.
Completion of the LSE-listing is subject to MOD receiving the necessary approvals of the UK Listing Authority and the London Stock Exchange.