Angus & Ross is negotiating a $25 million (£12.5 million) convertible bond for Greenland’s Black Angel zinc and lead mine.

Robin Andrews, dogged chairman of AIM-listed Angus & Ross (A&R), is thought to be close to signing a letter of intent with a major Nordic bank for the convertible, which would provide a key chunk of the estimated £20 million capital cost of bringing Black Angel back into production and yielding revenues by the end of next year. The mine was closed 17 years ago by its previous owners when metal prices were different from today, with 2.35 million tonnes of high-grade ore left in it and A&R says recent exploration has uncovered a further ‘indicated and inferred’ resource of two million tonnes.

Last year, the company, where RAB Capital has a significant stake, put a £30 million net present value estimate on Black Angel and Andrews suggests the mine could make operating profits of between £15 million and £20 million a year when it is up and running again. While cable car access is to be installed allowing year-round access to the mine, A&R is also about to embark on a new exploration drive around new discoveries in the area.

Floated six years ago at 3p as a nordic tantalum play, shares in versatile A&R, which also has gold and other interests across the Atlantic and in Australia, had fallen to 7.5p by mid-2005. The price surged to 27.25p last May on hopes for Black Angel, but has now drifted back to 14.25p, down 0.25p today and valuing the company at 19.8 million.

Up 50 per cent since Growth Company Investor suggested them as a punt at 9.38p 15 months ago, the shares remain speculative but still have scope as a potential recovery punt.