Euro Sun Mining (TSX: ESM) says it plans to float on the London Stock Exchange later this year, likely in September, as it looks to fund the first phase of its Rovina Valley copper-gold project in Romania.
The junior, the first non-state-owned entity to receive a ratified mining licence in the European country, said a London IPO would raise its profile in the United Kingdom and global investment markets.
The Rovina gold deposit, the second largest in Europe, holds about 400 million tonnes of confirmed resources containing 7.0 million ounces of gold and 1.4 billion pounds of copper. It is situated in the historical mining district known as the "Golden Quadrilateral" - one of the largest gold-producing areas in Europe.
"The decision to list in London, the world's most dominant capital market for mining stocks, fully underpins our overarching strategy of producing critical metals from our asset located in the EU to meet the increasing demand from European markets," chief executive Scott Moore said in the statement.
"There is currently a short supply of copper and gold produced within Europe, and ESM is well placed to help fill that gap," Moore noted
Euro Sun recently received the approval for the initiation of the strategic environmental assessment (SEA) related to the project, which allows it to apply for a construction permit.
The definitive feasibility study for the project, located in the heart of Transylvania in west central Romania, calls for two open pit mines with average annual gold equivalent production of 146,000 ounces in the first ten years of operations. The figure implies 106,000 ounces of gold and 19 million pounds of copper per year during almost 17 years.
The company plans to use a phased development approach at Rovina Valley, with the development of the two open pit gold-copper deposits, Colnic and Rovina, included in the DFS and the exploitation of the Ciresata underground deposit (not included in the study) phased in following completion of open-pit mining
Euro Sun obtained a 20-year mining license for Rovina in 2015. The Romanian government ratified the permit in November 2018.