Subiaco-based Global Nickel Investments Ltd has announced plans to raise $3 million in its initial public offer to fund exploration of prospective gold and nickel projects in a joint venture with Cazaly Resources Ltd.
Subiaco-based Global Nickel Investments Ltd has announced plans to raise $3 million in its initial public offer to fund exploration of prospective gold and nickel projects in a joint venture with Cazaly Resources Ltd.
The company, which will offer 15 million shares at 20 cents each to raise the money, will acquire a 70 per cent stake in each of four nickel-gold projects owned by Cazaly, and will serve as operator of a subsequent joint venture.
Global Nickel will initially focus on its Jutson Rocks project, situated in the Eastern Goldfields, with a $1 million exploration budget over two years including a $580,000 drilling program. A total of $1 million will be outlaid on data interpretation, field-work and drilling of the other two projects over the next two years.
The company is chaired by Proto Resources and Investments Ltd executive director Lia Darby in a non-executive capacity. She is joined on the board by Proto chair Andrew Mortimer as managing director, and former South China Resources plc managing director Steven Leithead.
Global Nickel's IPO is not underwritten and over-subscriptions will not be accepted.
The offer will open on July 9, to close on July 27.
The full text of a company announcement is pasted below
Global Nickel Investments Limited today announced a $3 million Initial Public Offer and plans to explore prospective nickel and gold targets in Western Australia in a joint venture with Cazaly Resources Limited.
Global Nickel has lodged a prospectus with the Australian Securities and Investments Commission and is expected to list on the Australian Securities Exchange in early August.
The Perth-based company will acquire a 70% stake in each of four nickel-gold projects owned by Cazaly Resources in the south-central region of WA, and will be operator of the exploration joint venture.
Managing Director, Mr Andrew Mortimer, said Global Nickel's ambition was to build a world class portfolio of nickel assets, one of the most highly sought metals at the present time.
"Under-investment and lack of exploration has limited nickel supply over the past five years and we are delighted to have acquired these highly prospective tenements from Cazaly Resources," Mr Mortimer said today.
Cazaly Resources Managing Director, Mr Nathan McMahon, said Global Nickel's management team brought strong exploration and corporate experience to the joint venture.
"Cazaly has retained a 30% stake in the Jutson Rocks, Cosmos North, Forrestania and Bandalup projects and looks forward to the commencement of an active exploration program," Mr McMahon said.
IPO details
Global Nickel is offering 15 million shares at an issue price of 20 cents a share to raise $3 million.
Total shares on issue at listing will be 23.9 million shares, valuing Global Nickel at listing at $4.78 million.
Global Nickel's IPO is scheduled to open on 9 July 2007 and to close on 27 July 2007 with listing on the ASX expected around 9 August 2007.
Shareholders registered three months after the ASX listing will be offered non-renounceable options on a one-for-one basis at an issue price of one cent and an exercise price of 20 cents a share.
Global Nickel's IPO is not underwritten and over-subscriptions will not be accepted.
Exploration assets
Global Nickel has four projects in Western Australia (see attached location map) which it describes as:
"The Jutson Rocks Project is situated within the Eastern Goldfields Region of Western Australia. During 2000, there was a discovery in the project area by Helix Resources and JV partner Quadrant Resources NL, of a large nickel-copper-platinum soil anomaly.
"The Cosmos North Project comprises a single licence located 35km north of Leinster and Mt White comprises three licences within the Lawlers District of the East Murchison Mineral Field which is highly prospective for gold and nickel mineralisation.
"The Forrestania Project is located in the Philips River Mineral Field and situated near the eastern edge of the southern most portion of the Forrestania Greenstone belt. The region is highly prospective for nickel and gold mineralisation.
"The Bandalup Project is a single exploration licence in the historic Ravensthorpe mining district covering a portion of the eastern limb of the Archean Ravensthorpe Greenstone Belt synclinal structure. The ultramafic unit is prospective for nickel mineralisation and granitic contact zones are prospective for gold mineralisation."
The Jutson Rocks project will be the focus of Global Nickel's early exploration efforts with a $1 million budget over two years including a $580,000 drilling program. A total of $1 million will be outlaid on data interpretation, field-work and drilling of the Cosmos North, Forrestania and Bandalup projects over two years.
