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. Last Updated: 07/27/2016

Aricom Joins LSE Main Board

Aricom began mining at the first of several Russian iron ore and titanium projects on Monday as it completed its transfer to the main board of the London Stock Exchange from the Alternative Investment Market.

Chief executive Jay Hambro said Aricom had begun mining at the Kuranakh deposit in the Amur region ahead of schedule. Ore would be crushed from December, and Aricom would ship its first concentrate in April or May next year, he said.

From Kuranakh, Aricom will ship about 900,000 tons per year of titano-magnetite ore, containing an average 62 percent iron, and 290,000 tons of ilmenite, the ore from which titanium sponge or dioxide is made.

China National Gold Corporation has agreed to take iron ore for the first five years and ilmenite for the first 18 months of output.

"In a relatively short period, Aricom has grown from a small exploration company to a developer and now miner. This evolution will now be reflected in our London listing," Hambro said in a statement accompanying Aricom's listing on the LSE main board.

He said the company had entered the FTSE 250 following its switch from the AIM, which involved the listing of 1.08 billion existing ordinary shares and 133 million warrants.

"It opens us up to a wider audience of people. That brings with it, I hope, a greater degree of liquidity," he said.

Hambro said Aricom had gone about 15 percent over its $95 million budget for Kuranakh due to higher-than-expected steel prices and an increased amount of blasting in the preparatory stage, but had met or exceeded all its deadlines.