Ausgem on target to raise $6m through float

AusGem International Ltd looks well placed to achieve its aim of raising $6 million by offering twenty-four million shares at 25 cents per share in its float and listing.

Upon completion of the offer, the new shares will represent 35 per cent of the company’s expanded capital base.

The major shareholders will be managing director Terry Featherby, director finance John Chegwidden and chairman Maxwell Cooper.

While a major exporter of rough stone, Australia has not historically processed and exported value-added product.

The company’s sales and marketing plan will be directed towards the architectural and interior design markets and collector, metaphysical and jewellery markets.

Mr Featherby said AusGem’s investment in leading stone cutting technology would enable it to provide value-added activities to traditional operations.

“AusGem will produce a world-class range of Australian gem and semi-precious stones, which will be both quality and price competitive with other international producers,” Mr Featherby said.

AusGem aims to incorporate electronic commerce, both business to business and business to consumer, to market its products on the domestic and international markets.

The company has entered into contracts to acquire an initial

portfolio of mining tenements containing gem and semi-precious stone deposits from Aurich Pty Ltd and Aradon Pty Ltd.

In addition, AusGem has the ability to source a range of deposits of natural stone material from various tenement holders and prospectors.

It also intends exploring for additional natural stone deposits, including granites and marbles.

AusGem has entered into contracts to purchase stone manufacturing equipment from Aradon, a manufacturer and exporter of gem and semi-precious stone products currently operating a processing and warehouse in Perth.

It has also contracted to purchase sphere manufacturing and diamond tooling plant from Flebus Pty Ltd.

Other specialised tile cutting equipment will also be acquired to expand manufacturing capacities.

The architectural and interior design markets have shown considerable interest in the company’s current range of natural stone products.

AusGem’s will conduct further test marketing and detailed product development with a view to tailoring its range of natural stone products over the next six to twelve months to meet market demand.

AusGem has also entered into contracts to acquire the operations of Falcon’s Eye International Pty Ltd, a company that distributes gem and semi-precious stone products both domestically and internationally into the collector, metaphysical and jewellery markets.

Falcon’s Eye has participated in domestic and international gem and semi-precious stone trade shows for the past fifteen years.

Through the success of products at these trade shows, the company has established a domestic and international client base which will be further supplemented by Aradon’s existing range of clients.