Jan 2015 Financial News

Canadian gold mining company to cross-list its shares on JSE

Jan 26, 2015

GOLD-MINING company Carube Resources Limited plans on cross-listing its shares on the Jamaica Stock Exchange (JSE) in the next six months.

The move is aimed at allowing local investors the chance to tap into the success of the company's mining operations in Canada and Jamaica.

Over the last four years, the Canadian company has dug well over a kilometer of rock in its search for gold and copper in 14 target areas at Bellas Gate, St Catherine. Carube, which partnered with Australian-based company Oz Minerals, has already pumped CDN$2.9 million into its Jamaican project and plans on spending another CDN$3.6 million for this year.

The mining company said it will be listing on the Toronto Stock Exchange (TSX) in the next two months, after which discussions will take place for the cross-listing on the JSE. Currently, Carube plans on raising CDN$4.23 million to cover exploration costs and listing requirements for its mining project in British Colombia.

"We've had discussions with the JSE and they suggested that there may be a way that we could do a cross-listing," vice-president of exploration, Jeff Ackert, told the Jamaica Observer during the launch of the JSE Investment and Capital Markets Conference at Jamaica Pegasus Hotel on Thursday.

Carube will be the second company to cross-list its shares on the JSE. Earlier this year, financial company Proven Investments Limited announced its plan to cross-list its shares by the end of this month. Following the listing, Ackert said that investors will be able to buy shares in the local currency for trade in Canadian currency.

General manager of the JSE, Marlene Street Forrest, stated that Carube Resources can cross-list its shares if the company is registered in Canada and is listed on any recognised stock exchange.

"If listing is through registration in Canada, the general mode is by an introduction. The company can afterwards raise funds on the market if required," Street Forrest stated in an e-mailed response.

Street Forrest stated that public investment into mining operations will be new to Jamaica.

"It is obvious that the time has come when Jamaicans should look beyond the traditional products and traditional companies and see what other investment opportunities are available," she added.

Carube currently has a unit offering of 21,150,000 units, each consisting of one common share and one-half common share purchase warrant on the TSX. A warrant will entitle the holder to purchase one common share for a period of 24 months from the closing date at a price of CDN$0.30 per common share.

"Existing shareholders currently own 40 million shares in the company, while the financing will add another 22 million shares," Ackert told the Sunday Finance. "So we are going to be sitting with about 60 million shares outstanding when we are finished with our financing in Canada."

He stated that the joint venture initiative it has with Oz Minerals, allows the company to continue work on the project in the Bellas Gate community without the need to raise capital. Additionally, it will significantly reduce the risk of the dilution of share structure in Carube Resources.

"We wouldn't be coming here and raising capital right away. When local investors buy shares in the company, they will be benefiting from someone else's money developing and increasing the value of the project and of the company," Ackert said.

"And it's not like having your eggs in one basket; you have some diversification in location and geography."

Carube is still at least five years away from establishing commercial mines in the Bellas Gate community. Nevertheless, the prospects for the firm, and Jamaica, seem promising.

Government stands to collect five per cent of revenues earned by the company if mining occurs, as well as taxes to be paid by the company. Carube's CEO Vern Rampton reckons a mine could also provide local employment for at least 15 years.

Source:
BY KARENA BENNETT Business reporter Bennettk@jamaicaobserver.com
Jamaica Observer
Sunday January 25, 2015 

http://www.jamaicaobserver.com/business/Canadian-gold-mining-company-to-cross-list-its-shares-on-JSE_18273956