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It is awfully tough for a mining company in the beaten-down uranium sector to raise money these days. But it doesn’t hurt if the executive chairman has the last name “Friedland.”
That’s Govind, not Robert. Govind Friedland’s company, appropriately named GoviEx Uranium Inc., has filed a final prospectus for an initial public offering on the Canadian Securities Exchange. It is a small deal expected to raise between US$1.5-million and US$5-million, with up to 2.3 million shares being issued at US$2.15 each.
There are more than 117 million shares outstanding today, though only 24.5% of them will be converted into freely-trading stock following the IPO. Vancouver-based GoviEx will use the proceeds to fund work on its Madaouela project in Niger.
Govind is the son of legendary mining financier Robert Friedland, and he has spent plenty of time working for his father’s companies. But he also made a name for himself with his uranium exploration work in Niger.
Between 2007 and 2011, GoviEx raised roughly US$100-million in private funds to pursue uranium opportunities in the West African nation, according to the IPO prospectus. The company attracted big-name investors like Cameco Corp. and Toshiba Corp. in that period.
Govind is based in Hong Kong and is a graduate of the Colorado School of Mines. He provided business development services to his father’s companies in the Asia Pacific region, and was part of the regional exploration team that made the Voisey’s Bay nickel discovery in Labrador in 1996. He owns 30.5 million GoviEx shares.
“[Govind] possesses a unique multicultural background having lived much of his life in Asia immersed in the mineral exploration industry,” the prospectus says.
For the rest of this article, click here: http://business.financialpost.com/2014/05/16/robert-friedlands-son-going-public-with-african-uranium-play/