(Corrects value of IPO from up to C$5 bln to up to C$500 mln)
* Intergeo will sell about 10 pct stake in IPO
* IPO expected to raise C$100 mln to C$500 mln
* IPO planned for end of year in Toronto
* Canadian mining veteran John Lill hired as CEO
By Pav Jordan and Julie Gordon
TORONTO, May 11 Intergeo, the Russian copper
and nickel company owned by billionaires Mikhail Prokhorov and
Maxim Finskiy, hopes to raise from C$100 million to C$500
million in a initial public offering on the Toronto Stock
Exchange by the end of the year.
Finskiy, the company's chairman and 20 percent stakeholder,
told Reuters in an interview on Wednesday the company would
float about 10 percent of its shares in the offering.
"We are planning to bring it to a Toronto listing by the
end of the fall, by the end of the year," Finskiy said between
meetings with investors in Toronto as part of a two-day visit.
He said the company was worth "definitely over C$1 billion,
not over C$5 billion."
Prokhorov, who controls 80 percent of Intergeo, is a
self-made Russian billionaire and one of the world's richest
Prokhorov is the chairman of Russia's largest gold
producer, Polyus Gold (PLZL.MM), formed out of the gold-mining
assets of Norilsk Nickel (GMKN.MM). He was part owner and chief
executive of Norilsk until 2007.
Finskiy, who divides his time between Russia and the United
States, said the partners aimed to leverage Prokhorov's U.S.
contacts to attract top investors.
"He has a personal relationship with many investors in
North America, and he is the owner of the New Jersey Nets, and
he is a very recognizable figure in North America, even more
than in Europe," said Finskiy. Prokhorov bought the NBA's New
Jersey franchise last year.
The company prefers to list in Toronto over New York
because the Canadian city has a better understanding of mining
and mining finance.
MULTIBILLION INVESTMENT PLANS
Prokhorov launched Intergeo in 2008 as an exploration
company, and announced plans to invest more than $10 billion
developing copper, nickel, molybdenum, titanium and precious
Finskiy said Intergeo, a subsidiary of Russia's Onexim
group private equity fund, which is also owned by Prokhorov,
would use cash from the IPO to fund development of its two main
projects in Russia: a sulphide nickel deposit and a nickel,
copper and platinum group metals deposit.
He described the former property as one of the largest
undeveloped sulphide nickel deposits in the world.
Russia is the world's largest producer of nickel, palladium
The company has already invested $300 million in
acquisitions and exploration.
"So those are the two giant projects that are the first
priority of Intergeo," said Finskiy. "Intergeo will be a large
tier producer of copper, nickel and the PGMs (platinum group
Intergeo could begin production within four to five years,
Finskiy said, adding that he has just hired Canadian mining
industry veteran John Lill, former chief executive of FNX
Mining, to be the company's CEO.
(Reporting by Pav Jordan and Julie Gordon; editing by Peter
Galloway and Rob Wilson)