Accordingtothecompanysadmissiondocument,thecompanyreckonsitsinvestingpolicycouldbesubstantiallyimplementedwithin18monthsbutAlgyClufftoldSharecasthehopestobeoffandrunningabitquickerthanthat,withJulytargetedasalikelydateforthefirstacquisition。

Wehavetwocompanies,oneinEurope,oneinAfrica,thatwehaveoureyeon,Cluffsaid。

Slightlyunusually,thecompanywillbetargetinginvestmentsnboththeoilandminingsectors。

Intheminingbusiness,yourexplorationdollargoesmuchfurther。

Youaredrillingdowntoashallowerdepththanintheoilbusiness,butontheotherhand,theminingbusinessisalotmorelabourintensive,andismorecyclical,Cluffsaid。

OtherthanrestrictingitsfieldofoperationstotheUKorAfrica,thecompanyiskeepingmostofitsoptionsopen:theproposedinvestmentstobemadebythecompanymaybeeitherquotedorunquoted;madebydirectacquisitionorthroughfarm-ins;eitherincompanies,partnershipsorjointventures;ordirectinterestsinoilgasandminingprojects。

Furthermore,thecompanysequityinterestinaproposedinvestmentmayrangefromaminoritypositiontototalownership。

CluffNaturalResourcescametoAIMafterplacing75msharesat5peachwithinstitutionalinvestors,manyofwhomwillbefamiliarwithAlgyCluffstrackrecord:hewasoneoftheearlymoversandshakersintheNorthSeaoilboomoftheseventies;setupAfricanminerCluffResourcesintheeighties;co-foundedCluffMining(subsequentlyrenamedRidgeMining)inthenoughties(thecompanywasultimatelyboughtbyAquariusPlatinum),whileinthesamedecadehealsofoundedCluffGold,wherehewasNon-ExecutiveChairmanuntildecidingtogiveupthepositioninAprilofthisyeartostartanewventureattheageof72。

Theplacingpriceof5pgivesamarketvalueof£4。

35mforthewholecompanymanagementretaineda14。

5%stakeinthecompanyandhasundertakennottosellanysharesforatleast12months。

Theplacingraised£3。

28minnewfundswhichlooksettobeusedforgeneralrunningcosts,ratherthanasammofortakeovers。

Theideaisthatthisisavehicleformyinvestmentplans。

Weintendtousepaper[thecompanysshares]tofundacquisitions,ClufftoldSharecast。

JH

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