London, June 30, IRNA-Persian Gold Thursday started trading on the London Stock Exchange's Alternative Investment Market (AIM) with the group chairman John Teeling optimistic that his exploration company will strike it rich.
"We are at the start of something which could be really big. We have had excellent assistance from the authorities in Tehran and we could not wish for better local co-operation," the Irish promoter.
Prior to its admittance, Persian Gold successfully raised Pnds 1 million by placing four million ordinary shares at a price of 25p per share, giving the company a value of Pnds 14 m.
"The aim of Persian Gold is to rekindle this sparkling history by applying modern exploration techniques to this relatively under- explored country," Telling was quoted saying by Irish Online.
The company was formed in the UK in 2003 specifically to explore for gold in Iran. It has recently completed early exploration work on an 1,800-sq-m site in Iran and its entry on the Stock Market is to seek funds to move to the next stage.
The first year's development work was financed by the principal investors, together with a small amount raised through a placing with private investors.
Persian Gold fulfilled the required of signing up with Iranian investors and was said to have little problem in recruiting necessary technical local staff for the large open cast low-grade prospect.
The second stage reportedly involves intensive mapping, sampling and possibly drilling the clusters. The company has explored for licences on three areas of 40 sq km each and expects to apply for three more.
The gold being targeted is hosted in deposits of the mineral alunite, commonly found in the region, and which has thrown up a number of major gold mines of the type best known in South America.
It is understood that traces of gold have so far been found in about 200 out of 3,000 samples that have been taken to be analysed in Loughrea, western Ireland.
Teeling already controls five AIM-listed companies in London, but unlike many of his other companies, Persian Gold is said to be tightly held by the Irish explorer and about 100 other investors.
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