Dragon Mountain opens $15m IPO

West Perth-based exploration company Dragon Mountain Gold Ltd will open its $15 million initial public offer today, to raise funds for exploration of its joint venture gold projects in China.

The company, which was previously known as Pan Pacific Gold Ltd, will offer 37.5 million shares at 40 cents each to raise the money.

Dragon Mountain Gold Ltd has entered into joint venture agreements with subsidiaries of Gansu Non-Ferrous Metallurgical Bureau and a subsidiary of the Chinese Bureau of Geology and Mineral Resources for work on its projects.

Funds raised will be used for drilling and further exploration of its projects, in the Xinjiang Province of north-west China and the Gansu province in central west China.

The company holds an 83.6 per cent stake in unlisted Canadian company Warrior Advance Ltd, with its wholly owned subsidiary, Long Province Resources Ltd, owning 90 per cent of the Long Jin Joint Venture and 87 per cent (earning up to 90 per cent) of the Long Ao Joint Venture in the Gansu province in central west China (collectively called the Lixian Project).

The Company has entered into co-operative joint venture agreements in respect of each of the Lixian Project and the Xinjiang Projects.

Dragon Mountain is chaired by Medusa Mining Ltd chair and Westwind Partners managing director of investment banking for Kevin Tomlinson in a non-executive capacity, with Andrew Richards serving as managing director. They are joined on the board by Andrew Hector, Joshua Klenbort and Alan Beanland, all of who serve in a non-executive role, with Jane Terry as company secretary.

Delta Securities will serve as manager to the offer, while Bentleys MRI Perth Financial Services Pty Ltd will act as investigating accountant. While Fairweather and Lemonis will be solicitors to the offer, the company has also hired China-based Beijing Hawkhigh Law Firm to serve as independent solicitor reporting on licences.

The offer, which is not underwritten, will close on July 16.