Aricom to raise $1 bln to expand in Russia

May 25, 2008

May 25 (Reuters) – Russian miner Aricom Plc (OREA.L: Quote, Profile, Research) plans to raise more than $1 billion to expand its iron ore projects in Russia, the Sunday Telegraph reported.

The newspaper said London-listed Aricom, spun off from Peter Hambro Mining Plc (POG.L: Quote, Profile, Research), had appointed Morgan Stanley for the fundraising — details of which it said are expected this week — and to look at the potential of finding a strategic partner.

Morgan Stanley is looking to raise $1.0-$1.2 billion to exploit Aricom’s K&S and Garinskoye projects in the Russian Far East.

The newspaper quoted Aricom Chief Executive Jay Hambro as saying the company had around 12 months of cash and did not believe the credit crisis would hamper the fundraising.

“We can take our time raising the money and choosing the right details,” the Sunday Telegraph quoted Hambro as saying.

Aricom were not immediately available for comment.

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