Executive Summary
Frontier Mining Ltd. is a mineral exploration and development company that was incorporated in the state of Delaware, USA, on August 5, 1998 for the purpose of exploring and developing gold and copper deposits in the Republic of Kazakhstan. Through its subsidiaries and affiliates, Frontier locates, evaluates, acquires, explores and develops mineral properties. Frontier has two licenses owned by its wholly owned subsidiaries in Kazakhstan.
Company History
Key milestones in the company's history are as follows.
- November 2007: the company acquired a 50% stake in the Benkala copper deposit project, a joint venture between Videira Management [1] and DCM Structured Finance [2]
- March 2008: the company announced an extended period of exporation of two years at the gold project Koskuduk, and at the copper-gold prospects Baritory, Beschoku and Yubileiny
- June 2008: it announced revenue for 2007 of US$2,394,778
- September 2008: an advanced drilling programme at the Benkala copper project began
- December 2008: test results at the Benkala project revealed copper reserves in the form of primary ore and an increase in the potential recovery rate in the form of sellable concentrate
Current Events
Current events involving Fontier Mining are as follows:
- March 2009: the company announced the appointment of Erlan Sagadiev as Chief Executive Officer and Chairman
- April 2009: it secured a US$14m financing agreement from US$10m debt financing and US$4m in cash for new shares
- June 2009: the pilot production licence was extended at the Naimanjal Complex and gold production commenced
- August 2009: £5m in additional funding was secured from YA Global Master SPV Ltd [3]
- September 2009: the company announced the issue of 1,038,208 shares to Yorkville Advisors LLC.
Business Model
Products/Services
The company is involved in the mining and production of gold and copper.
Segments/Customers
Production/Operations
The company owns the Naimanjal exploration and mining licence, held by FML Kazakhstan, and the Baltemir exploration licence, held by Baltemir LLP. Frontier has one producing gold mine, Naimanjal; one pre-feasibility stage gold project, Koskuduk; and one exploration stage gold prospect, Baltemir. Naimanjal is forecast by management to produce 25,000 ounces of gold in 2006 at a cash cost of $250 per ounce. Frontier currently intends to double its gold production to 50,000 ounces in 2007 and double it again to 100,000 ounces in 2008. Management believes its gold projects contain more than two million…
