“Negligible sovereign risk, perfect infrastructure, beautiful countryside, beautiful people – Sweden is God’s own country in terms of exploration,” says Alcaston chairman Clarke Dudley.
This is not news to diamond giant De Beers, which has been busy buying up ground in this part of the world over the last 12 months - particularly in western Russia - as it tries to clean up its image and reduce its association with “blood diamonds” from African hot spots.
Neither is it news to Ashton Mining, which has also come in on the act, picking up some very interesting ground in neighbouring Finland.
But Alcaston has had a hard time convincing a sceptical Australian investing public about the worth of the ground, and hence has turned its capital raising attentions back to Sweden.
Swedish subsidiary Alcaston Diamond Exploration AB successfully raised close to $1 million in seed capital, and has drawn up a draft prospectus - which should be finalised by the end of September – ready for listing shortly after.
Initially, 10 million shares will be issued at a price of about SEK12, half of which will be available to the public, with Alcaston Mining retaining the other half.
“The pending float has raised quite a lot of interest in the United Kingdom and some other countries, as well as Sweden,” said Dudley.
Alcaston will use the money raised to explore the 3% of Sweden over which it has retained mining leases. An airborne geophysical survey has already identified about 300 targets, of which 22 are considered high priority with attractive geophysical signatures.
Six years ago, the company had a regional license to explore almost half the country, but UK giant RTZ stepped in and tried to throw its weight around. After the dust had settled, RTZ had gone and Alcaston was left with 15,000sq.km of promising ground.
“This is still by far the biggest exploration license issued in Sweden,” said Dudley.
Alcaston has been happy to keep a low profile in Sweden as it consolidates its position, but Dudley says that once it goes public that will change.
