D AMMAM, Saudi Arabia () — London investment banking group Ambrian Capital has today launched the Golden Prospect Precious Metals Ltd. closed-end fund on the London Stock Exchange’s Alternative Investment (AIM) market, ticker symbol: GPM. The fund is the first fund to list on the AIM dedicated to making equity investments in the precious metals sector and is registered in the U.K. Channel Island of Guernsey.

Managed by Ambrian Capital [AIM:AMBR ] subsidiary Ambrian Asset Management Ltd. the launch marks a milestone in the company’s drive to build an independent, diversified investment bank specializing in minerals and metals investments. The investment management subsidiary is the parent group’s third operating subsidiary, joining Ambrian Partners Ltd. and Ambrian Commodities Ltd. a corporate finance and equity brokerage, and metals broker-dealer, respectively.

The launch of the Precious Metals Fund provides a platform for the development of Ambrian Capital’s investment management business. The Precious Metals Fund will benefit from the precious metals investment expertise that Ambrian Capital, formerly Golden Prospect plc, has built-up over many years. In addition, GPPM will be able to take advantage of the low tax regime in Guernsey, Ambrian’s CEO Tom Gaffney said in an AIM and press statement.

The company will be capitalized at approximately lb12.9 million (US$25.12 million). The initial placement price for each Ordinary Share in Golden Prospect was 100 pence (

US$1.97) and came with one Warrant in the company [AIM:GPMW ].

According to management, the closed end fund will focus on making equity investments in companyies that have projects in the development or productions stage and which are active in the gold, silver, platinum, palladium and diamond market sectors.

Parent Ambrian Capital seeded the fund with the transfer of approximately lb9.4 million (US$ 18.3 million) from its existing precious metals portfolio, and consists of the following:

Based on their pooled and accumulated investment experience in the metals and mining industry and conditions in these markets Company directors believe the fund will generate above-average returns through capital appreciation of a selective portfolio of investments.

According to its charter, the fund’s managers can also diversify up to 20% of gross assets into investments in other strategic metals and minerals commodities, including uranium. Stock selection will be based primarily on fundamental factors and wider economic considerations, including geopolitical risks.

Building the Bank

Ambrian is also building up its investment banking business. Acting as broker and nominating sponsor, or Nomad, Ambrian Partners Ltd. on November 21 successfully floated shares for Medusa Mining Limited on AIM [MML ]. Characterised as a high-grade, low cost gold producer, Medusa’s management is working towards increasing gold production at its Philippines mine to 100,000 ounces by the first quarter 2008.

Working with Ambrian, Medusa earlier this month successfully raised A$11,143,990 (

US$8.7 million) in capital before expenses. Combined with the proceeds from the AIM flotation Medusa management is proceeding with the acquisition of its Philippine partner, Philsaga Mining Corporation. It also intends to carry out an aggressive exploration programme covering a 700 km 2 area along the richly mineralized East Mindanao ridge. A number of porphyry copper/gold targets have also been identified for drilling, which will commence next year, management stated in an announcement.

Ambrian Capital is also involved in the exploration and productions sides of the precious and strategic metals and mining industry. On November 23, the company signed a Heads of Agreement to merge its mining and exploration assets with Palladex Plc. [AIM:PLX ], a mineral exploration and development company.

As part of the agreement, Palladex has agreed to acquire Ethiopian Resources Ltd. a private U.K. registered company that imports platinum concentrate from Ambrian’s Ethiopian assets.

Held in Golden Prospect Mining Company Limited (Bermuda), a holding company, these include a 51% interest in Yubdo Platinum and Gold Development Plc. a platinum and gold mining operation that wholly owns three exploration licences and two prospecting licences for gold and platinum in Ethiopia; an 87.5% interest in Madagascar Gold and Stones, which holds gold exploration licences in that country; and joint venture exploration projects for platinum, gold and diamonds in Sierra Leone.

Palladex, in return, will issue 50 million new shares to Ambrian, its nominees and Ethiopian Resources’ shareholders. This group will hold a 44.8% stake in Palladex as a result, according to an Ambrian management statement.

Riding the Bull

With the Golden Prospect Precious Metals fund complementing its corporate finance, investment banking and brokerage activities in the equity and metals markets, Ambrian is now poised to become more active in the investment management side of the business. Management expects to follow up their initial fund launch with additional listings in the near future.

The precious metals sector has experienced a trend of rising market prices since 2001 which has been largely driven by classic supply and demand economics. Generally, there has been a marked increase in the demand for commodities. However, there have been few recent discoveries of new precious metal resources and those that have been found will typically take many years to bring into production.

The Directors believe that the current upward price trend in the precious metals sector could continue for a number of years making this an opportune time to launch a precious metals fund focusing on these target commodities, according to Ambrian’s press statement.

Golden Prospect’s board of directors includes Malcolm Burne, chairman of Ambrian Capital Plc. who has over 20 years’ experience in the mineral resource and gold sectors. Other members of the board include: Colin Bird, CEO of Jubilee Platinum Plc. Kaare Foy, chairman and CEO of Great Panther Resources Ltd. Dr. John Bowles, geological consultant with Mineral Science Ltd. and Robert King, director of Northern Trust International Fund Administration ( Guernsey ) Services Ltd.

Commenting on the fund’s launch, Director of Golden Prospect Precious Metals’ Malcolm Burne said, We are delighted to be launching the first precious metals fund on AIM and are confident that with our clear investment strategy and robust evaluation criteria, we can exploit the opportunities that this sector offers and generate substantial returns for our investors. Our team has detailed knowledge of the metals markets and so we are well placed to capitalise on what we consider to be very positive market conditions.