Shefa Yamim : prepares for London IPO, commercial mine in Israel

JERUSALEM (Reuters) - Shefa Yamim, the only Israeli miner for precious stones, has signed with a brokerage firm in London to pursue an initial public offering to raise up to $10 million as it plans a possible expansion of its operations in northern Israel.

Shefa Yamim, already listed in Tel Aviv, said on Monday the London flotation of a 75-percent owned subsidiary is scheduled to happen by the end of the year. It did not name the brokerage or specify which London market it was eyeing.

Reuters reported in March that the company had been mulling an issuance on London's junior Alternative Investment Market.

Chief Executive Avi Taub, an Orthodox Jew, says he founded the company based on comments made by a revered rabbi who said that precious stones were divinely buried in a valley near the city of Haifa.

Shefa Yamim said it is 12-18 months away from completing its exploration and an economic feasibility study on whether to open the first commercial mine in Israel.

(Removes reference to rabbi making comment during conversation with CEO in paragraph 4.)

(Reporting by Ari Rabinovitch; Editing by Tova Cohen)