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Pacific Road Resources Capital Management

Pacific Road Resources Capital Management
Based in Sydney
Active in DR Congo, Papua New Guinea, United States, Zambia, Guyana, Mexico, Chile, Indonesia, Lesotho
Targeted base metals, energy fuels, precious metals

Pacific Road Resources Capital Management is a private equity fund, set up by the Sydney-based Pacific Road Group [PRRF] "to invest directly in mining projects, related infrastructure and services companies in Australia and selected overseas countries across a range of commodities." Among its principals is David Klingner, formerly with Rio Tinto.

In December 2007, along with RMB Resources (qv), Pacific Road, through their jointly-owned Kula Gold company bought LSE-listed diamond producer Gem Diamonds’ Woodlark gold project in Papua New Guinea [Mining Weekly, 10 September 2007].

In Novemember 2010, Gem Diamonds launched the biggest IPO for three years on the Australian Stock Exchange, initially pitched at raising Aus$80 million [Australian Mining, 5 November 2010].

In August 2007, PRRF entered into an agreement with AIM-listed Minco Plc to finance feasibility studies and development of the Bilbao Zinc Project and the Laguna Silver tailings recovery Project in Zacatecas, Mexico - as a result of which these projects were taken over by TSX- listed Xtierra Inc.

In June 2008, PRRF provided funding to Timmins Gold Corp to fund re-development of the San Francisco Gold Mine in Sonora State, Mexico - the mine commenced production in April 2010.

In July 2008, PRRF provided funding to TSX-listed Far West Mining Ltd to fund pre-feasibility expenditure at the Santo Domingo IOCG (iron ore, copper and gold) project in northern Chile. Two years later, in July 2010, Far West Mining estimated its resources at 485 million tonnes, with an average copper equivalent grade of 0.57%.

In June 2009,PRRF funded First Bauxite Corporation's pre-feasibility expenditure on the Bonasika refractory bauxite project in Guyana, South America.

In October 2009 PRRF also financed Mawson West Limited's Kapulo and Dikulushi copper projects in Katanga Provence, Democratic Republic of Congo.

In April 2010 Mawson West completed a transaction with Anvil Mining that increased Mawson West’s interest in the Kapulo project to 90% and provided for the acquisition of the Dikulushi mine and processing plant.

Anvil Mining had, in 2004, been at the centre of accusations by a number of human rights groups that personnel employed at the Dikulushi mine had provided logistical assistance to the Congolese military which resulted in the massacre of more than 70 people.

In November 2010, an assoction representing relatives and survivors of this appalling action, supported by a coalition of Canadian, international and Congolese non-government organizations, filed a class action suit against Anvil Mining [Press Release, Canadian Center for International Justice, Montreal 8 November 2010].

in April 2010, PRRF provided financing for the acquisition of the Reno Creek Uranium Property in the USA, from its existing joint-venture partners, Strathmore Minerals and American Uranium. Reno Creek was acquired by a newly created private company which is jointly owned by PRRF (72%) and TSX-Venture listed Bayswater Uranium Corporation (28%).

A month later,PRRF became a "cornerstone investor" in ASX-listed Carbon Energy Limited. through its acquisition of a 10% stake (in conjunction with a co-investor) from the Commonwealth Scientific and Industrial Research Organisation (CSIRO). The company produces gas, using the Underground Coal Gasification (UCG) technology, developed by the CSIRO and owned by Carbon Energy.

[The above information is extracted from Pacific Road Resource Capital Management's website, accessed 11 November 2010].

In January 2009 Pacific Road also promised £26 million to Albidon Ltd, a UK company exploring for nickel and uranium in Zambia [Hemscott 30 January 2009; MJ 6 February 2009]. However, over the following two months Albidon was looking to be a failure – until it secured a new deal with China’s Jinchuan Group [MJ 6 March 2009].

In early 2014, Pacific Road, along with Resource Capital Fund VI (see: Resource Capital),said it would inject a combined US$ 100 million into Firestone Diamonds plc, to advance its Lequobong project in Lesotho which could give the funds a shareholdering of 27.1% each, if and when their warrants are converted to shares [MJ 17 January 2014].