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UPDATE - Frontier Mining shares rise as gets gov't go-ahead for Naimanjal sale

UPDATE - Frontier Mining shares rise as gets gov't go-ahead for Naimanjal sale


Shares in copper miner Frontier Mining (LON:FML) advanced as it received the governmental go-ahead to sell its Naimanjal licence area in Kazakhstan to Union Transnationale Miniere SA (UTM).

Frontier shares shot up in March this year when it first announced plans for the disposal, which has a cash consideration of US$30 million.

The firm said it wanted to focus solely of stabilising operations at its flagship Benkala copper mine and developing the South Benkala resource.

Naimanjal in north east Kazakhstan has four commercial discoveries covering 529 sq km, including Baitemir, Yubileiny and Beschoku.

All proceeds from the sale are expected to be used for repayment of maturing debt and financing expenditures for the ramp up of copper production at Benkala to maximum levels.

Following the statement, specialist resource broker RFC Ambrian said: "With debts currently in the region of US$92mln, this sale of assets will go a long way to tidying up the balance sheet and providing Frontier with some breathing space as it continues to ramp up production.

"A completion of the transaction before winter would aid Frontier in its initiatives to improve/optimise circuit issues particular to winter."

Shares rose 9.38% to stand at 0.875p each.

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Frontier Mining Timeline

January 23 2015

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