Convergent to raise $4m in IPO

West Perth-based gold and uranium explorer Convergent Minerals Ltd will raise a maximum of $4 million through its initial public offer for exploration of its Queensland Steam Engine gold project.

The company, which will issue 17.5 million shares at 20c each, will also accept oversubscriptions of 2.5 million shares. It has also announced plans to undertake a non-renounceable entitlements issue to shareholders within 6 months of listing.

The options are intended to be offered for subscription at a price of 0.5 cents each on a one for one basis, to be exercisable at 20 cents per share and will expire on 31 December 2011.

Convergent is chaired by The Gold Company Ltd and Sofcom Ltd chairman Simon Cato, with Roderick McIllree serving as managing director. They are joined on the board by Redport Ltd chairman Richard Homsany and Elemental Minerals Ltd director Jeremy Whybrow.

The company has appointed Ord Corporate Pty Ltd as independent accountant, with the deal not being underwritten.

The offer will open on November 30 and close December 22.