Adelaide, Apr 3, 2006 (ABN Newswire) - Allied Gold Limited (ASX: ALD) will in May become one of the first companies with a new, previously undeveloped mining project in Papua New Guinea, to list on London's Alternative Investment Market.

Perth-based Allied announced today it has formally applied for admission to the AIM market and expects to list on May 2, giving the emerging gold producer dual listing with its existing presence on the Australian Stock Exchange.

The announcement coincides with the Company's success late last week in securing shareholder approval for the final proportion of the A$41.7 million second and final tranche of capital raising to fund Allied through to its first gold pour next year from its Simberi Island oxide Project.

"We have now secured a total of more than A$50 million in new capital and the Company is also well advanced with securing an additional debt facility for up to US$25 million from RMB Resources Limited," Allied Gold's Managing Director, Mr Wayne Loxton, said today.

"These efforts will ensure that Allied will be fully funded to take us right through to full commissioning of the oxide gold mine," Mr Loxton said.

"Importantly, the capital raisings have enabled Allied to transform its shares register with almost half of its shares now being held by institutional investors predominantly from the UK, US, Hong Kong and Europe," he said.

"The calibre of investor - and the AIM listing - will expose the Company to further offshore investment and institutional interest in Australia. The appreciation of the value of Allied's Simberi Gold Project, located 60 km northwest of Lihir, is now being recognised in the Company's market capitalisation of more than A$100 million.

"Allied is on track for mine commencement and start-up in the first half of 2007 in a high gold price environment. Importantly, resource definition drilling is continuing to expand known mineralisation."

Mr Loxton said London's markets showed significant institutional and private client investor support for mining companies with emerging production capability and strong growth potential.

"A presence on AIM provides Allied with exposure to the largest pool of global capital in the world and access to an equities market with a wealth of international investment expertise."

Mr Loxton said Allied Gold has already commenced pre-development earthworks and establishment of infrastructure for the mining of the Simberi Oxide Deposits and drilling is ongoing to further define and expand the sulphide resources on Simberi Island.

Further exploration and evaluation would also be undertaken on highly prospective geochemical and geophysical targets on Simberi, Tatau and Big Tabar Islands.

Two tier raising approved

In February this year, Allied placed 25 million ordinary shares at an issue price of A$0.40 cents per share to predominantly UK based investors, institutions and fund managers to raise A$10 million.

In the second part of the capital raising, Allied will place a further 94.7 million shares at A$0.44 each. All necessary shareholder approvals for the placement were obtained last week, taking the total number of Allied shares on issue to 242 million.

Last week, Allied announced that new results from drilling to the east and west of the main Sorowar pit and to the south at the Pigiput deposit, had returned strong intersections, including 80m at 2.72g/t gold from 26m in RC1193, 44m at 1.17g/t gold from 12m in RC1189 and 6m at 10.5g/t gold from 101m in RC1195.
Allied's currently identified oxide gold mining project Ore Reserves and Mineral Resources within designed pits total 17.1 million tonnes at 1.30 g/t gold for 712,000 ounces.

Total Mineral Resources on Simberi Island currently comprise 46.8 million tonnes at 1.51 g/t gold for 2.27 million ounces.