Connelly-led Tao in $4m IPO

Mark Connelly-led Tao Commodities is set to commence trading on the ASX on Monday, after the junior explorer raised $4.7 million via an initial public offering.

The company has issued 23.7 million shares at 20 cents each, with GTT Ventures acting as lead manager to the offer.

Tao has entered into a share purchase agreement to acquire US-based company Calatos, which owns the Milford zinc-gold project in Utah.

Under the agreement, Tao has issued about 500,000 shares and 2 million options to the previous owner, Bruce McFarlane.

Mr McFarlane had started legal action in the Supreme Court of Western Australia against the company in relation to the purchase agreement, however, the proceedings were dismissed last month.

The company said funds from the raising would be used for costs associated with the acquisition of the project, along with an exploration program and general working capital.

Mr Connelly is Tao’s non-executive chairman, and has previously held senior executive positions with gold producer Newmont Mining and Inmet Mining.

He is currently non-executive chairman of ASX-listed West African Resources and Tiger Resources, and is a non-executive director at Ausdrill and Saracen Mineral Holdings.

GTT founder Patric Glovac also features on the company’s board as an executive director.

Mr Glovac is an executive director at Cirrus Networks, Robo 3D and Force Commodities.

Jason Brewer is non-executive director and currently serves in the same role at Cape Lambert Resources, Vector Resources and Force.

Mr Connelly said the company would leverage the expertise of its board and management to monetise the project.

“Running in parallel with the proposed evaluation and exploration of the project, the company's ongoing strategy will also include the identification and acquisition of projects, across the commodity spectrum mentioned above, that the board believes will provide fundamental value to shareholders,” he said in a letter to investors.

GTT director Charles Thomas has a 5.9 per cent stake in the company, while Mr Glovac has a 4.5 per cent share.