The board is also pleased to announce the acquisition of a 51% interest in the Schevchenko nickel deposit with the right to increase its stake to 90%. Situated in northern Kazakhstan the project is an estimated 100 million tonne nickel deposit, of which, according to independent consultants, at least 30 million tonnes will be commercially extractable.

The company has also acquired 89% control (with the right to increase up to 95%) of a 70 square kilometre concession at Urup one of the Kuril Islands north of Japan. Bonanza grade gold deposits have been tested.

Oriel has further gold mining interests in Kazakhstan and Kyrgystan and plans to acquire and develop early and advanced stage projects in the Russian Federation and Republics of the Commonwealth of Independent States.

Ahead of the Initial Public Offering, the group has been valued at approximately £65 million and expects to raise around £25 million by way of a placing and open offer..

The company was founded by Dr Sergey Kurzin, who has over ten years experience in the international mining industry, and Stephen Dattels, who was a director and executive vice chairman of Barrick Gold and is a leading mining entrepreneur.

The executive chairman, Dr Kurzin, has dual Russian/UK nationality. He has built a wide network of professionals through which he intends to acquire and progress mining properties in the Republics of the former Soviet Union.