13/10/2009 - 14:12

General Mining Corp plans float

13/10/2009 - 14:12

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The Michael Wright-backed private company General Mining Corporation is seeking to raise $240,000 in seed capital to help it prepare for a local stock exchange listing by the end of the year.

The Michael Wright-backed private company General Mining Corporation is seeking to raise $240,000 in seed capital to help it prepare for a local stock exchange listing by the end of the year.

In its information memorandum, GMC said half of the proceeds from the seed capital raising will be used to prepare an initial public offer, which is likely to raise about $3 million.

The other half of the funds will be used for working capital. GMC said it will offer 2 million shares at 12 cents each to raise the $240,000.

GMC currently has 19 million shares on issue.

State One Stockbroking is managing the raising.

GMC's flagship asset is the Shoemaker iron ore joint venture in the Mid West region with Galaxy Resources.

Plans for the immediate future are to undertake a comprehensive drilling program at Shoemaker, and also explore the company's Uvs Nuur potash-lithium-soda ash project in Mongolia.

The company also holds other assets in Australia and Mongolia.

On the company's board is chairman Craig Redhead and directors Robert and Christopher Wanless and Michael Wright, who recently resigned as non-executive director of Jaguar Minerals.

GMC is aiming to open its IPO sometime this month and plans to list on the Australian Securities Exchange in late November or early December, according to the information memorandum.

GMC joins a growing list of companies aiming to float on the ASX, including Mobilarm which today launched its $6 million IPO and the Ted Ellyard-backed New World Energy planning to open a $10 million IPO shortly.

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