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. Last Updated: 07/27/2016

Eurasia Gold Planning IPO on London Stock Exchange

Kazakh-based gold miner Eurasia Gold, which is partly owned by Russian billionaire Viktor Vekselberg, plans to sell shares on the London Stock Exchange next month to raise up to $150 million for acquisitions in Central Asia, Bloomberg reported Monday, quoting the company's chairman.

Aton Capital said in a note to investors Monday that the news was "positive but largely anticipated" because the company had mentioned the possibility of a London listing before, after acquiring assets in Kyrgyzstan and Tajikistan last year.

The company is already listed in Toronto, where it is headquartered. Its chairman said the company wanted to end up as a $400 million to $500 million company, fully cashed to develop its new assets.

Currently, the company is producing gold from the Mizek and Central Mukur mines in Kazakhstan, where it also has an exploration license covering 9,900 square kilometers in the Charsk gold belt in the northeast of the country.

Last year, it acquired a gold and copper project in Kyrgyzstan and a silver project in Tajikistan. With the help of these projects, it plans to increase output from 66,000 ounces of gold output last year to 350,000 ounces of gold equivalent by 2010, with two-thirds of the output in gold and the rest mainly in copper, Bloomberg reported.

About $50 million earned with the London flotation will be invested in each of the new projects.

The Kyrgyz and Tajik projects are owned by Eurasia Gold founder Kumar Mukashev and his family, who hold 54 percent in the company. Vekselberg owns about 24 percent through his Renova investment company. This number will drop to 12 percent after the London sale.