Tasmania-focused metals miner Macquarie Harbour Mining Ltd has announced plans to raise a minimum of $4 million through its initial public offer to commence a drilling program across its portfolio.
Tasmania-focused metals miner Macquarie Harbour Mining Ltd has announced plans to raise a minimum of $4 million through its initial public offer to commence a drilling program across its portfolio.
Issuing 20 million shares at 20 cents each, the company will also offer a further 10 million shares in oversubscriptions, allowing it to raise up to $6 million.
The company will use the proceeds from the float to begin drilling a highly prospective portfolio of gold, copper, nickel, zinc, iron ore, tin and platinum group metal targets across Tasmania.
The company is chaired by chartered accountant and Harden East & Conti Pty Ltd partner Basil Conti, who is joined on the board by managing director Frank Rogers.
The other directors include Benjamin Mead as executive director, Dr Neil Allen and Peter Robertson as non-executive directors. Jade D'Andrilli will serve as company secretary.
Macquarie Harbour, which will have a registered office in West Perth, has retained BDO Kendalls Audit and Assurance as auditor and BDO Kendalls Corporate Finance Pty Ltd as investigating accountant. Pullinger Readhead Lucas will provide legal advice to the company.
Sydney-based Sonray Corporate Pty Ltd will act as financial adviser and lead manager to the company, while Hobart-based law firm Simmons Wolfhagen will serve as independent solicitor reporting on tenements.
The offer, which is not underwritten, opens today, to close on November 16.
The full text of a company announcement is pasted below
Diversified miner Macquarie Harbour Mining Ltd (ASX: MHM) opens its IPO tomorrow in its quest to raise up to $6 million. The company promises to scour 1200km2 of 100 percent-owned tenements in two of Tasmania's most prospective and historic mining regions - the north east and the west coast.
Assisted by Sonray Corporate, MHM is offering investors a minimum of 20 million 20 cents shares (with an entitlement to take up a one-for-two option at one cent, three months after the company lists on the ASX) with a further 10 million shares in oversubscriptions to take market capitalisation at the offer price to $11.5 million.
Macquarie Harbour Mining (MHM) will use the proceeds from the float to begin drilling a highly prospective portfolio of gold, copper, nickel, zinc, iron ore, tin and platinum group metal targets across Tasmania.
The MHM portfolio is unique in that the tenements cover entire structures all of which are very prospective for hosting substantial deposits. The tenement areas have been strategically targeted in the interests of generating income in the short, medium and long term to avoid equity dilution.
In north-eastern Tasmania, the company hopes to develop five old gold mines along a 10km strike length at Gladstone. These mines, with gold grades up to 90 grams a tonne, closed last century due to problems associated with water and sulphide-associated ore. These issues can now be overcome with advances in technology. A rig has already been booked to begin drilling here in the new year and the target is to develop an open-cut mine with a resource of some 300,000 ounces.
The tenements in north-eastern Tasmania also include 13 tin deposits over an area of 75km2 at Musselroe. This gives MHM an opportunity to develop substantial deposits of alluvial tin. Reported grades from historical drilling have been as high as 11.6kg/m3 and it has been reported that the region has the potential for up to a 10 million tonne alluvial tin resource.
On the west coast of Tasmania, MHM is targeting four tenements covering about 800 km2 of the southern Mount Read volcanic belt which is well-known for large base metal deposits like Mt Lyell and Hellyer. The tenements under application in this area are prospective for gold, copper, nickel, zinc, iron ore and platinum group metals.
The MHM regional targets are the Strahan nickel zinc project, the Double Cove copper gold zinc nickel and iron ore project, the Hibbs nickel gold platinum and & Birchs polymetalic projects and, the Thomas Creek copper gold project which is another priority target.
According to the Tasmanian Geological Survey, this tenement area has: "Most of the geological features of the heavily-mineralised central part of Western Tasmania (Queenstown - Zeehan - Hellyer area) including the extension of the major host unit, the Mt Read Volcanics belt. [The area contains] ultramafic rocks similar to the host rocks of the recent Allegiance Mining nickel discovery west of Zeehan, and numerous structural features of interest as potential mineralised features. The area can be viewed as an under-explored extension of the West Coast."
Besides this portfolio of readily identifiable diverse targets, MHM has an experienced management team led by managing director Frank Rogers. Mr Rogers has been managing mining companies, mineral and chemical process operations, materials handling projects and waste processing industries for 38 years.
The other directors include Basil Conti as chairman, Benjamin Mead as executive director, Dr Neil Allen and Peter Robertson as non-executive directors.
Mr Rogers said today that Macquarie Harbour Mining has great potential to create a highly-profitable, diversified mining company that builds shareholder wealth into the future.
The offer opens tomorrow, is scheduled to close on 16 November and list on the ASX on 4 December.
