ALMAR attracted 200 million rubles to complete geological exploration

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."

Galina Semyonova for Rough&Polished