Carbine raises $3m in IPO for gold project acquisition

Subiaco-based gold explortion company Carbine Resources Ltd has announced plans to raise $3 million in its initial public offer to fund exploration and evaluation of the Red Dam gold project, 45km west of Kalgoorlie.

The company, which will offer 15 million shares at 20c each, recently acquired the project from Welshpool-based Allied Gold Ltd, in exchange for a consideration of 4 million shares at 20c each together with a $5,000 cash payment.

Holders of over 2,000 shares in Allied will receive a priority offer of 5 million of the 15 million issued under the prospectus.

Upon completion of the capital raising, Allied will hold a 13.6 per cent stake in the company.

Carbine is chaired by mining engineer Rob Brierley in an executive capacity. He is joined on the board by Prospera Corporate principal Peter Torre, along with Ezenet Ltd chairman Wolf Martinick and Ausdrill managing director Ronald Sayers.

The company has retained BDO Consultants as Investigating Accountant to the deal, with Steinepreis Paganin handling the group's legal affairs.

The deal, which is not underwritten, opened on February 12 with the priority offer closing March 2, and the general offer closing March 9.