Perth-based mineral drilling company Esplanade Capital Group Ltd, known through its SMS Group subsidiary, aims to raise $4 million through its initial public offer to fund expansion and access to capital markets.
The company has undertaken a share sale agreement, which will result in a reverse acquisition before listing, with SMS to acquire Esplanade and consequently list as Swick Mining Services Ltd.
Esplanade, which will issue 20 million shares at 20c each, will remain 71 per cent owned by the Swick family, which founded the diamond and long-hole drilling company in 1964.
Keeping it in the family, the company plans to appoint Kent Swick as managing director following listing. Mr Swick, who was previously employed as a maintenance engineer by Atlas Copco Australia, will be joined on the board by his brother Randal Swick, the managing director of Cougar Metals NL, as a non-executive director.
The company will be chaired by Resource & Technology Marketing Services Ltd managing director and Consolidated Minerals Ltd director Andrew Simpson, with former Deloitte Touche Tohmatsu senior manager Michael Fry as Financial Director.
The company's current directors, Graeme Yukich, Bradley Gordon and Andrew Fry, will resign following settlement of the Share Sale Agreement.
Entrust Private Wealth Management will act as Lead Manager for the deal, with PKF Chartered Accountants and PKF Corporate Advisory Services as auditors and investigating accountants respectively.
The deal has not been underwritten, and no oversubscriptions will be accepted.
The offer will open on September 28 and close on October 20.
