Buchanan opens $3m IPO for exploration costs

West Perth-based diversified minerals explorer Buchanan Resources Ltd has opened its initial public offer, aiming to raise $3 million for exploration of its five East Kimberley projects.

The company, which will issue 15 million shares at 20 cents each along with one free option with every two shares issued, recently acquired the tenements, which it says will be prospective for diamonds, nickel, copper, gold and uranium.

Located by vendor and geologist Peter Lewis, the tenements are all 100 per cent owned by the company.

Buchanan is chaired by Pegasus Metals Ltd chairman Craig Munro, who is joined on the board by Echo Resources Ltd and Pegasus board members Peter Andrews and Graham Anderson.

BDO Kendalls will act as auditor and investigating accountant for the company, with Christensen Vaughn providing legal advice. The lead manager of the deal is Patersons Securities Ltd.

The offer will close on August 31.