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. Last Updated: 07/27/2016

Randgold Debut Comes Up Short

LONDON -- The London debut of South Africa's Randgold Resources Ltd. and its share offer failed to meet market expectations as investors were still reluctant to put money in gold projects in the aftermath of the Bre-X scandal.


Randgold Resources, part of Randgold and Exploration Company Ltd., said it issued fewer shares at a lower price than it had initially envisaged, but still called its Thursday London-listing "satisfactory" in the light of the recent upheaval affecting gold markets.


Bre-X, a small Canadian mining firm, rocked world markets as it emerged in May that its claims of having found this century's biggest gold deposit were based on a massive fraud. Gold prices have plummeted and investors immediately shunned exploration projects.


Randgold, which needs money to develop projects in Mali and Tanzania, raised $82.5 million, while it had originally hoped to bring in $125 million or more.