ALMAR Arctic Diamonds JSC, which is exploring a diamond deposit in the north of Yakutia, raised 200 million rubles during a private placement of shares. The buyers of the shares are professional participants in the financial market: ITI Capital, Derzhava Bank and IFC Solid.
The placement took place on the STRK investment platform, which is a Skolkovo resident. The creation of the joint-stock company, the additional issue of shares and the record-keeping of shareholders’ rights following the results of the transaction were ensured by VTB Registrar.
The deal was organized by the investment company Polarctic Capital, which handled the negotiations and roadshows with the participation of professional market stakeholders.
The total volume of investments, together with the attracted funds, amounted to 270 million rubles. Previously, financing, including exploration of deposits, was carried out by the company’s management and Polarctic Capital. The funds raised will be used to complete the exploration of alluvial diamond deposits for open pit mining and to confirm reserves.
ALMAR is developing the deposits through its 100%-owned subsidiary Arctic Mining Company LLC, which owns the licenses for geological exploration of the Beenchime and Khatystakh diamond alluvial deposits located in the north of the Republic of Sakha (Yakutia). Since 2021, exploration work has been carried out by the contractor JSC Almazy Anabara, a subsidiary of AK ALROSA. Inferred resources are estimated at 9 million carats for open pit mining and 20 million carats of P3 category for underground mining to a depth of 100 m.
According to the plan, the exploration of deposits for open-pit mining will be completed in 2022, the confirmation of reserves is expected in 2023. In 2024-2030, the company plans to start the exploration of deposits for the underground mining method. The start of diamond mining is scheduled for 2024.
The past investment round is one of the stages in preparation for ALMAR’s entry to the SPB Exchange, which will provide the company with the funding necessary to complete exploration and move to field development.
As the Chairman of the Board of Directors of ALMAR, Lyudmila Nikolaeva noted, “The example of ALMAR will allow other companies in the future to attract investments from qualified investors at an early stage of development while remaining independent and developing the economy of the region of our activity as a responsible subsoil user and local taxpayer.”
Polarctic Capital is an investment group specializing in investments in mining projects at the early stages of development, helps junior mining companies gain access to capital markets, provides investment projects with initial financing and competencies in business development in accordance with modern requirements for transparency, responsibility and sustainable development.
IFK Solid is an investment and financial company that has been providing brokerage services on global platforms since 1993, holds a high reliability rating (NRA), has a high level of expertise in managing large private capital and securitization of assets in order to provide companies with access to capital markets, provides its services in 23 cities of Russia.
ITI Capital is an investment company with 20 years of experience in the Russian stock market and the highest reliability rating of AAA (NRA), the key area of activity is the brokerage business.
AKB Derzhava is a universal bank, a financial institution for medium and small businesses. Since its foundation in 1994, the Bank has been a reliable partner of many Russian companies and is also one of the major shareholders of the St. Petersburg Stock Exchange.