Creasy's Galileo Mining in $15m IPO

09/04/2018 - 17:34

Mark Creasy-backed Galileo Mining has launched its prospectus to raise up to $15 million via an initial public offering to fund an exploration program across its tenements in the Fraser Range near Norseman.

Mark Creasy (left) and Brad Underwood have both helped develop Galelio Mining.

Perth-based Galileo will issue up to 75 million shares at 20 cents each, with Mr Creasy set to own 31 per cent of the company following the raising.

Mr Creasy founded the nickel and cobalt-focused company in 2003 and was a director until last month.

The company is led by managing director Brad Underwood, who has worked directly for Mr Creasy since 2010, initially as a project manager and more recently as general manager of several exploration companies.

Non-executive chairman Simon Jenkins has been a director of law firm Price Sierakowski Corporate since 2005.

Mr Jenkins said funds raised from the offer would be spent on exploration costs.

“The minimum subscription amount of funds will provide the company with sufficient capital to undertake budgeted exploration programmes, while full subscription will allow the company to accelerate its exploration and development plans while also enabling identification and assessment of additional growth projects,” he said in a letter to investors.

“The company has assembled an experienced management, exploration and development team who are well qualified to exploit the potential of the company’s mineral assets.”

The Norseman project is located adjacent to the town of Norseman and includes tenements prospective for cobalt.

The Fraser Range project covers two zones along the Fraser Range geological belt, which has a proven nickel mineralisation with the 2012 discover of the Nova-Bollinger nickel-copper-cobalt mine.

Mr Creasy played a key role in the Nova discovery, which has since been developed into a mine operated by Independence Group.

Bell Potter Securities is acting as lead manager to the offer, Price Sierakowski is Galileo’s legal adviser while HLB Mann Judd is the investigating accountant.

The company is aiming to begin trading on the ASX in May.