Aricom Looking to Raise $1Bln

LONDON — Russian miner Aricom plans to raise more than $1 billion to expand its iron ore projects in the country, The Sunday Telegraph reported.

The newspaper said London-listed Aricom, spun off from Peter Hambro Mining, 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 billion to $1.2 billion to exploit Aricom's K&S and Garinskoye projects in the Far East.

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

"We can take our time raising the money and choosing the right details," Hambro said, The Sunday Telegraph reported.

Aricom was not immediately available for comment.