Perth-based gold explorer, Colonial Resources Ltd will list on the Australian Stock Exchange tomorrow after raising $2.8 million in its Initial Public Offer.
Colonial launched its IPO initially to raise A$2.5m, however it secured a further $500,000 in oversubscriptions due to significant demand from the investors invited to take part in the IPO.
The IPO offered a total of 11,500,000 shares at 20c per share with one free attaching option for every two shares offered. The company will list with no significant vend or seed capital.
Upon listing Colonial Resources plans to commence a $1m drilling program at its Eldorado Gold Project, located 50km from Kalgoorlie in the eastern goldfields region of Western Australia, early in the June quarter.
Colonial Resources has an option to acquire an 85 per cent interest in the Eldorado Project from Golden Crest Pty Ltd and Raefen Pty Ltd. The option will be exercised by the issue of shares.
A JV will be formed at that time between Colonial (85%) and the vendors (15%). The interests of Golden Crest and Raefen will be free carried to a decision to mine.
Colonial Resources Limited Managing Director Mark Hansen said Colonial was committed to advancing the Eldorado Project with previous drilling confirming classic Kalgoorlie-style gold mineralisation.
"Eldorado is an exciting project that represents an advanced exploration target for Colonial and we looking forward to unlocking its potential," he said.
"The purpose of this capital raising is to secure the necessary funds to aggressively explore and develop the Eldorado project which has good potential for the discovery of high grade gold deposits.
"Colonial has an experienced Board of Directors with the right mix of skills in mineral exploration and development and the successful management of public listed companies."
Mr Hansen said Colonial would remain focused on the exploration of gold at Eldorado and would seek to identify, evaluate and acquire further project opportunities in Australia and overseas.
Pattersons Securities Limited was the Lead Manager on this raising.
