20/02/2008 - 14:11

Augustus Minerals shares down on ASX debut

20/02/2008 - 14:11

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Gold and base metals explorer, Augustus Minerals Ltd, has made a lacklustre debut on the Australian stock market today, with its shares opening at 40 cents each or 20 per cent down on their offer price of 50 cents.

Gold and base metals explorer, Augustus Minerals Ltd, has made a lacklustre debut on the Australian stock market today, with its shares opening at 40 cents each or 20 per cent down on their offer price of 50 cents.

The stock reached a high of 44 cents per share in intraday trade before closing down at 39 cents per share.

The debut follows the successful launch of a $2.5 million initial public offer in November, in which the company had 5 million shares on offer at 50 cents each.

According to its prospectus, the company has purchased a 19 per cent interest in Dostyk Gold LLP, which consists of gold and polymetallic deposits in the Maikubensk area of Pavlodar oblast of the Republic of Kazakhstan.

The company also owns the Mt Palmer Tenements, located approximately 36 kilometres east of Southern Cross which straddle the old Mt Palmer gold mine.

Augustus aims to define further mineralisation on the Mt Palmer Tenements and the Dostyk Project and review
potential new mineral based projects.

In the short to medium term, it intends to achieve this by funding its 19 per cent interest in the ongoing
exploration activities being conducted on the Dostyk Project by the Dostyk Partnership Entity's project team
managed by Cigma; implement a detailed work program on the granted Mt Palmer tenement; review exploration data obtained from previous holders of the tenements; and consider and evaluate potential new projects both
locally and internationally.

Augustus is chaired by Garry Ralston, a director and co-founder of Select Mortgage Service and a co-founder and former director of Finance and Systems Technology Pty Ltd.

He was until recently a director of the ASX-listed Tomahawk Energy Ltd and founding chairman of Enviromission Ltd (formerly Prudential West Pty Ltd).

Mr Ralston is joined on the board by non-executive director Mathew Walker, who is chairman of Trajan Minerals Ltd, director of ACNS Capital Markets Pty Ltd (trading as Delta Securities), and managing director of Windy Knob Resources Ltd.

Marketing and advertising executive Jonathan Wild rounds out the board as an executive director.

Delta Securities acted as manager to the offer, while Steinepreis Paganin acted as solicitors and HLB Mann Judd as investigating accountant.

 

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