Balcatta-based Burey Gold Ltd, formerly Mamba Resources Ltd, has closed its initial public offer oversubscribed by $1.5 million, or 30 per cent, on its $5 million maximum allowable target.
Balcatta-based Burey Gold Ltd, formerly Mamba Resources Ltd, has closed its initial public offer oversubscribed by $1.5 million, or 30 per cent, on its $5 million maximum allowable target.
The full text of a company announcement is pasted below
Australia's latest capital raising for a gold and uranium explorer has closed oversubscribed after raising in excess of the maximum allowable target of $5 million.
Perth-based Burey Gold Ltd announced today that its $5 million Initial Public Offer had been closed off at that level although oversubscriptions for a total of $6.5 million, or $1.5 million above the prospectus provisions, had been received.
Burey is now expected to list on the ASX next Wednesday, December 13, with 45.2 million shares on issue, capitalising the Company at listing at $9.4 million.
The Company offered 25 million shares at 20 cents per ordinary share to raise exploration funds for its flagship and advanced 145 square kilometre Mansounia gold project in the west African state of Guinea, and options over a suite of uranium exploration licences and applications in Western Australia and South Australia.
As stated in the Burey prospectus, the Company plans to spend $3 million at Mansounia over the next two years. A 90-hole 7,800 metre Reverse Circulation drilling program has just been completed with results due early in 2007.
Burey will earn a 70 per cent interest in the Guinea asset by sole funding exploration through to the completion of a Bankable Feasibility Study. It has an option to increase its stake in the project to 85 per cent.
"This is a strong start to public life and reflects what we believe is heightened awareness in the past 12 months of the opportunities for Australian mining companies to establish dual exploration footprints," Burey's Executive Chairman, Mr Ron Gajewski said.
"Equity markets have shown greater appetite in recent time for Australian explorers participating in Africa's mining sector, particularly those which do so to develop a more balanced portfolio of local and international assets," Mr Gajewski said.
"We have achieved this through injecting into the IPO, a strong on-the-ground presence in Guinea with a sizeable and now completed gold drilling program, while assembling in Australia, assets able to take advantage of the current upside in uranium exploration."
"Burey has an extensive range of contacts in West Africa and plans to use these to add to our maiden gold assets either through acquisition or joint venture," he said.
"If the uranium options are not exercised, proceeds set aside for that work will be re-applied to fast track additional exploration on the Mansounia gold project."
Gold within the Mansounia acreage is associated with mesothermal vein style mineralisation entirely consistent with the majority of Archaean and Protoerozoic terrains worldwide, including the Birmian Series of West Africa.
Mr Gajewski said previous soil sampling had identified +10 parts ber billion gold in a soil halo in the northern portion of the permit covering nearly 4 kilometres of strike with many well defined zones exceeding 250 ppb over 200 - 400 metre width. Some of these have since been favourably tested with RAB and RC drilling.
"The project represent a large tonnage, low grade heap cyanide leach target with mineralisation of similar rock type and tenor as other HCL mines developed and operating within the same Siguiri Basin province," Mr Gajkewski said.
The project is just two kilometres south of the Keniero mine plant operated by Toronto-listed Semafo Inc.
Uranium potential in two Australian states
Burey's six month option agreement with ASX-listed Kalgoorlie Boulder Resources Ltd covers the acquisition in WA and SA of 26 exploration licences or applications over 5,040 square kilometres of a portfolio of highly prospective uranium projects.
"With the increase in the market price of uranium and a greater focus on the energy needs of the world, investor sentiment has become positive for uranium in recent times," Mr Gajewski said.
"The uranium assets proposed for acquisition have the potential to add shareholder value but we have a six month window to finalise our due diligence and make a decision," he said.
The suite includes 10 Exploration Licences covering 1,184 square kilometres of WA's Gascoyne region and joint ventures with Redport Limited over 4 ELs covering 868 square kilometres in the Kintyre East Project in the Gibson Desert region of WA.
In SA, the offering covers 12 ELs over nearly 3,000 square kilometres around Port Lincoln, Eyre Peninsula, Yankalilla south of Adelaide and Olary, Prospect Hill and Mirackina in the State's far north.
