Russian Mining Companies GV Gold Will Sell Shares to Fund Expansion

Russian mining company will sell shares in some of the largest in the world stock markets, like Hong Kong, London, Moscow and Toronto this year to raise funds used to finance the expansion of new sources of mining.

Head of GV development gold mining company, Maxim Gorlachev, states "An IPO is one option we should consider the fund growth. GV Gold needs to invest approximately $ 300 million in four years to four times the output."

GV has 16.6 million ounces of gold resources and has a value of at least $ 500 million, Gorlachev said. Bodaibo, according to GV Irkutsk region produced 111,000 ounces of gold last year and plans to develop the mine to increase output to 438,000 ounces in 2014, according to presentations at the conference.

This company is majority owned by management, including Chairman Sergei Dokuchayev, who is also a co-owner of ZAO Russian Lanta Bank lenders. New York-based Blackrock Inc., which paid $ 16.7 million for 10 percent of the GV in 2007, has a 19.99 percent stake, the maximum can be stored in a company that is not publicly traded, Gorlachev said.

Russian companies may raise more than $ 20 billion selling shares in 2010 when they improve balance and continue the expansion after the recession ended the deepest recorded, Aganbegyan Ruben, president of the Russian investment bank Renaissance Capital in Moscow, said in December. OAO Severstal, Russia's largest steel, is considering whether to sell shares of gold mining unit, two people familiar with the situation said in December.