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. Last Updated: 07/27/2016

Hambro Jr. Eyes Timber Firm Listing

LONDON -- The son of mining magnate Peter Hambro plans to list his Siberian timber venture in London early next year to raise 15 million pounds ($28.6 million) to help the firm take advantage of booming demand in nearby China.

Leo Hambro said his father, who founded Peter Hambro Mining in 1994, stumbled across the Tynda property in the Amur region while looking for a site to process his locally produced metal.

His father and Russian business partner Pavel Maslovsky soon realized the potential of Tynda because the property -- roughly the size of Wales -- sits just a few kilometers from China and its rapidly expanding economy.

"When they bought it, they then realized what they had found. It was in need of cash, but it had huge potential because of its position on the Chinese border and its vast assets of high-quality timber," Leo Hambro said.

"The demand for raw materials in China is huge, as we all know. Amur sits on one side of the river with 1.2 million people, and on the other, a similar-sized area has 58 million people," he said.

Hambro said demand for Tynda shares offered through a private placement was strong.

"We've turned down several offers of people who wanted to buy the entire company and one who wanted to buy the entire placing," he said.

When it lists on London's Alternative Investment Market, Tynda is expected to have a capitalization of 50 million pounds.

Its brokers, City Capital Corporation, estimate a 40 percent uplift in its shares on listing, Hambro said.