European focused mineral explorer Erris Resources plc (LON:ERIS) got off to a steady start on its junior market debut on Thursday.
Shares in the company – which has a portfolio of zinc prospects in Ireland and gold projects in Sweden – gained 2p on the 25p initial public offering price in early deals to trade at 27p.
WATCH: Erris Resources debut with news on their Irish/Swedish mine assets
Erris raised £4mln at its IPO with Canada’s Osisko Gold Royalties ploughing in £1.47mln to take an 18.9% stake, while fellow Canadian outfit, Centerra Gold has a strategic alliance to help the company explore its projects in Sweden.
That cash will be used to get drilling campaigns underway across its various assets.
The zinc projects in Sligo, Ireland are relatively shallow which makes them cheap to mine. Erris will also benefit from the rise in zinc prices which have jumped by around a quarter in 2017.
Panthera also joins AIM
Another exploration company joining the junior market on Thursday was Panthera Resources PLC (LON:PAT).
The gold explorer also made a solid start to life as a listed company with shares rising to 23.5p shortly after the opening bell – 17.5% higher than the 20p the shares were placed at for the float.
Bhukia in India is Panthera’s flagship project. It currently has a JORC inferred resourced of 1.74mln ounces on a 100% basis, although it reckons there could be more than 6mln oz of gold there. The company also has gold projects in West Africa.
Sentiment returning to sector
Other resources companies to list in 2017 include Rainbow Rare Earths Ltd (LON:RBW), Phoenix Global Holdings (LON:PHNX), Jangada Mines Plc (LON:JAN), PJSC Polyus (LON:PLZL), Altus Strategies PLC (LON:ALS), Cora Gold Ltd (LON:CORA), AfriTin Mining Ltd (LON:ATM) and most recently Shefa Yamin Ltd (LON:SEFA).
Only two miners joined the London Stock Exchange last year amidst a steep downturn in the industry.
As commodity prices have recovered sentiment has returned to the sector in recent months, although some junior explorers have still found it difficult to raise money.