KazakhGold seeks 100 mln stg in London float

/REUTERS, London, October 31, 05/ - KazakhGold is aiming to raise about 100 million pounds ($178 million) by floating around a quarter of the company, a source close to the situation said on Monday as the firm announced it was seeking a London listing. KazakhGold, the parent company of Kazakh-based gold miner Kazakhaltyn, intends to launch a public offering of global depository receipts on the London Stock Exchange. "Over the past few years we have been implementing a significant programme of investment in technology modernisation and production capacity expansion across our principal gold assets," Chief Executive Kanat Shaikhanovich Assaubayev said in a statement. "The funds raised in conjunction with our listing in London will enable us to complete this programme and move into a period of significant growth in gold production." KazakhGold produced 26,272 ounces of gold in 2004, down from 36,182 ounces a year earlier, after the temporary shutdown of ore processing at two of its flotation plants. It said it expected to significantly raise production in 2006 after restarting expanded operations this year. Kazakhaltyn has mining rights to the around 27 percent of Kazakhstan's proven gold reserves, the company said, from its operations based largely in the north of the mineral-rich state. The company is owned by the Assaubayev family and chaired by Peter Daresbury, who stepped down as Chairman of Russian gold miner Highland Gold Mining in April and who is a non-executive director of Russian steelmaker Evraz. KazakhGold is the latest firm from the former Soviet Union to seek a London listing, and the second from Kazakhstan to have its primary listing on London's main exchange. A month ago copper miner Kazakhmys raised around 660 million pounds from its float to fund organic growth and acquisitions. The company is expected to float in late November after a month-long roadshow, the source told Reuters. Dutch bank ING is acting as lead manager for the offer. [2005-10-31]