News

July 08, 2008

Minerva Resources Is More Advanced With Its Gold, But Longer-Term Platinum May Turn Out To Be The Company Maker

By Alastair Ford

“People are more enamoured with gold than with platinum at the moment, and we’re more advanced with the gold”. So says Minerva Resources chief Terry Ward as he embarks on a new round of fundraising. It’s a tough ask in these markets, but given that some of the money’s already in, Mr Ward is optimistic that Minerva’s £3 million raise at 3p a share will get most of the way there. After all, people may be more enamoured of gold at the moment, but they’re not exactly switched off by platinum either. The metal went through US$2,000 again this week, and power constraints and political uncertainty in South Africa should keep it strong for several years yet. Two things hold Minerva back on that score though. The first is the relatively early stage of the company’s Yubdo platinum deposit: “We don’t know enough about it yet”, says Mr Ward. The second is its location: Ethiopia.

Minerva is currently an Ethiopia-focussed company. There aren’t too many of those about, but investors with a vague predilection for precious metals won’t find it such a stretch to believe a small scale gold story focussed on the former Italian colony. Platinum in Ethiopia, on the other hand, may be just a stretch too far – too many unknowns and not enough appetite for the risk. So for now the immediate focus is on gold. We’ll come back to the platinum later - as will Minerva.

Minerva...