DIAMOND enthusiasts have the opportunity to invest in a number of exploration projects, including some in Western Australia, following the spinout of diamond exploration projects from Alcaston Mining NL through an initial public offer.
Lionheart Exploration Limited, formerly a wholly-owned subsidiary of Alcaston is buying projects in WA, the Northern Territory and Sweden from Alcaston in exchange for Alcaston’s shareholders receiving a pro-rata distribution of shares in Lionheart.
The Lionheart directors including Alcaston’s previous managing director Clarke Dudley and technical director Nicholas Kempton are seeking to raise up to $3 million through the issue of up to 15 million, 20 cent shares. The offer is expected to close on July 16.
Lionheart Exploration Limited has agreed to acquire the three diamond exploration projects from Alcaston through the issue of 10 million Lionheart shares. If the minimum subscription is reached, the company will have a market capitalisation of $2.74 million.
The Labelle Downs, Northern Territory project is subject to a two-stage option/joint venture with De Beers Australia Ltd where De Beers has an option to spend $750,000 in exploration to earn a 70 per cent interest.
The Leopold Downs project covering 386 square kilometres over two exploration licences is located approximately 50 kilometres southeast of the Ellendale lamproite diamond field. It contains a cluster of five lamproite bodies comprising four pipes ranging in surface area from 10.4 hectares to one hectare.
The project is subject to a farm-in and joint venture agreement with Rio Tinto Exploration Pty Ltd. Rio Tinto can earn an initial 70 per cent by spending $3 million.
The Swedish project consists of 17 diamond exploration licences covering 1,076 square kilometres over parts of the Baltic Shield.
Key2 reaches capital aim
RESIDENTIAL investment property manager Key2 Ltd has closed its capital raising fully subscribed. It has raised $2.2 million through the offer of 11 million, 20 cent shares.
Key2 has $225 million of assets under management.
Key2 chairman Ananda Kathiravelu said the funds would be used to expand the WA aggregating property management assets or rent rolls nationally. He said there was no dominant, national player in the emerging industry sector opening the way for a new player.
“I am very pleased with the response from both investors and the broking industry,” Mr Kathiravelu said. “People easily understood the business and also noted similarities to the childcare aggregation models that are presently enjoying strong market support.”
A NEW fund, OM-IP 130 Plus Limited has been launched with a guaranteed return of $1.30 per $1 share. It is based on a new generation of guaranteed return funds developed by the Man Group, a UK-based international financial services group. The fund aims to generate capital growth of 15 per cent per annum. Minimum subscription is $5,000.
The offer is open for seven weeks to June 27.
A NEW product designed to help those with breathing difficulties is the backbone of a company which is hoping to raise between $5 million and $20 million through an initial public offer on either the Australian Stock Exchange or the Newcastle Stock Exchange.
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