Charles Russell is Bucking the Downturn in the Capital Markets

Despite recent publicity that the number of AIM Market admissions has reduced compared to last year and of a downturn in the capital markets, Charles Russell proves that activity on AIM is still strong in some areas, particularly in the energy and natural resources sectors, with a string of recent deals.

The Charles Russell Corporate Finance team have recently concluded several significant deals in the mining and oil and gas industries covering admissions, primary and secondary fundraisings and reverse takeovers including:

Partner Clive Hopewell, assisted by Adam Carling, advised KPMG Corporate Finance (as nominated adviser) and BMO Capital Markets Limited (as broker) on the £45 million placing and admission to AIM of Chariot Oil and Gas Limited, an oil exploration company with licences over onshore and offshore sites in Namibia. This transaction is the first time that a company with all of its assets in Namibia has been listed on either AIM or the Main Market of the London Stock Exchange.
Partner Alexander Keepin, assisted by Vicky Hau, Renee O’Brien and Ruth Morrow, acted for Canaccord Adams Limited and JPMorgan Cazenove on the reverse takeover by Gemfields Resources Plc of Krinera and Greentop (both of which held interests in the Kagem Emerald mine) for $120m and a $60 million fundraising for Gemfields Resources Plc by Canaccord Adams Limited and JPMorgan Cazenove.
Partner Alexander Keepin, assisted by Vicky Hau and Ruth Morrow, acted for AIM listed company Polo Resources Limited on a secondary fundraising by BMO Nesbitt Burns and Canaccord Adams to raise $160 million additional capital. Alexander Keepin, assisted by Ruth Morrow, also advised Polo Resources Limited on a $87 million additional capital raising by JPMorgan Cazenove, BMO Nesbitt Burns and Canaccord Adams in March.
Partner Clive Hopewell, assisted by Adam Carling, Amit Khanna and Joshua Hunt, advised Canaccord Adams Limited (as nominated adviser and joint broker) and GMP Securities Europe LLP (as financial adviser and joint broker) on the admission to AIM of Sunkar Resources Plc, together with a related £33.6 million placing. Sunkar has a 90% interest in Temir-Service LLP, a limited liability partnership established under the laws of the Republic of Kazakhstan, and the winner of a tender to mine phosphates at the Chilisai Deposit in Kazakhstan.
Partner Clive Hopewell, assisted by Adam Carling, Reeta Nair and Joshua Hunt, advised Jefferies International Limited, as nominated adviser and broker, on the reverse takeover by Gasol Plc of African LNG Holdings Limited and its application for re-admission to AIM. In May 2008, Gasol sent notification to African Gas Development Corporation Limited of the exercise of its option to acquire 80% of the issued share capital of African LNG Holdings Limited. Following this acquisition, African LNG Holdings Limited became a wholly-owned subsidiary of Gasol.
Partner Simon Gilbert, assisted by Kelly Hutchins acted for AIM listed Mwana Africa Plc on its £25m cash placing. 62.5 million new ordinary shares were successfully placed by JPMorgan Cazenove and Canaccord Adams (co-managers) at a price of £0.40 per share. Mwana Africa Plc is a Pan- African resources company with production, exploration and development assets across Africa.
Partner Simon Gilbert, assisted by Kelly Hutchins, acted for Origo Sino-India Plc, the AIM listed investment and strategic consulting company focused on the private equity markets of China and India, on its £17.1 million placing.
Partner Clive Hopewell, assisted by Mark Howard and Tim Vallance-Webb advising W.H. Ireland Limited and Hichens Harrison & Co. Plc on the acquisition by River Diamonds plc ("RD") of the 80% of the share capital of Viso Gero International, Inc. not already held by RD to acquire the whole of the Vatukoula Gold Mine in Fiji and the related placing to raise gross proceeds of £5 million. The acquisition constituted a reverse takeover under the AIM Rules for Companies.

The quarter also saw the publication by ICSA Publishing of the book A Practical Guide to AIM written by principal author Alexander Keepin with contributions from the team.

Simon Gilbert, Head of Corporate Finance at Charles Russell, said, "We are delighted that the Charles Russell Corporate Finance team is still seeing significant capital markets activity, particularly in the energy and natural resources sector, with a string of top quality transactions."