Companies: CRC   

Philippines-fancying mining hopeful Copper Resources, hoping to develop a potential 2.3 billion lb copper project there, says it is looking for other copper prospects to acquire.

Chaired since May by Sir Sam Jonah, former chief executive of Ashanti Goldfields and one of Africa's 'great and good', and run by Australian chief executive officer Christopher Jordinson, the company, which claims £9 million cash and no debt, intends to complete a bankable feasibility study within 18 months on its Hinoba-an copper project on the Philippines' Negros Island. Jordinson cites a 1998 study estimating a potential 15-year open pit mine life, with thoroughly economic cash costs of 48 US cents per lb and marginal gold, silver and molybdenum production on top.

Copper Resources also has an option on Namibia's Haib project, previously worked on by several mining majors, where 1996 estimates suggested a potential resource of two billion lbs. But, apart from looking for new acquisitions, the company's chief focus will be Hinoba-an, buttressed by the Philippines' newly friendly mining regime and its proximity to the copper-thirsty Chinese market.

Copper Resources came to AIM in April with a £3.4 million fundraising at £1 handled by broker CDL Securities. Unfortunately, pre-float friends had put significant sums in at little more than half that price and were tempted to take some of their profits.

That has helped slash the price to 45.5p – appreciably below the 58p at which Jonah was awarded 150,000 options lasting to 2010. The company has recruited Westhouse Securities to rectify the position.

At these levels, the shares might well repay a long-term punt.