North Perth-based Doray Minerals says it expects to list on the local bourse this month after it raised more than $4.6 million in its initial public offer.
North Perth-based Doray Minerals says it expects to list on the local bourse this month after it raised more than $4.6 million in its initial public offer.
The company, led by former WMC and Avoca geologist Mr Allan Kelly, will issue a total of 23.3 million shares at 20 cents each, raising $4.66 million. On listing, Doray will have 47.9 million shares on issue and 14 million unlisted options, with a market capitalisation at the issue price of $9.58 million.
Doray expects to list on or around February 8.
Mr Kelly said that despite a slower IPO market last year, the level of investor support for quality exploration companies such as Doray with a focus on gold is very strong.
"The positive feedback received during our roadshow demonstrated the bullish gold environment and reinforced the timing of our IPO," said Mr Kelly. "With several walk-up prospects for immediate drill testing, along with a pipeline of exciting earlier stage opportunities, we're very well-placed to participate in this upside."
Doray has a strategic land package of over 2100km2 in the Murchison Region of Western Australia and the Central Gawler Gold Province of South Australia. Access and infrastructure in both regions provide several options for toll treatment, should Doray be successful in defining a significant gold resource.
The Company's immediate focus is on the Meekatharra North Project (Meeka North) in the northern Murchison, which represents the best opportunity for short-term success.
"Although Doray is a new company, I've had experience in this region and with these prospects over many years," Mr Kelly said.
"Meeka North contains a number of prospects discovered by WMC in the late 1990's, a period when the gold price at the time didn't encourage further exploration in this area," he said. "The projects have had no systematic exploration for gold in more than ten years."
Doray expects to commence drilling at Meeka North by the end of February with the initial aim of confirming the grade and continuity of gold mineralisation at the Andy Well prospect.
Doray's IPO received significant interest from retail and institutional investors and from clients of Shaw Stockbroking Limited (the sponsoring broker to the Offer).
