30/08/2021 - 14:30

Gold, copper explorers seek $34m

30/08/2021 - 14:30


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Four Western Australian explorers are preparing to list on the ASX, having launched initial public offerings to raise a combined $34 million.

Star will focus on developing its Tumblegum South gold project near Meekatharra. Photo: Star Minerals

Four Western Australian explorers are preparing to list on the ASX, having launched initial public offerings to raise a combined $34 million.

Copper Search Australia and Kalgoorlie Gold Mining are each seeking to raise $12 million from their IPOs, while Recharge Metals and Star Minerals plan to raise $5 million.

Based in Applecross, Copper Search is focused on exploring South Australia’s Gawler Craton region.

The company, which issued almost 34.3 million shares through its IPO, is scheduled to list on the ASX on September 9.

ACNS Capital Markets and Sydney's amicaa Advisors acted as joint lead managers to the raising.

In a prospectus lodged with the Australian Securities and Investments Commission on July 30, Copper Search chairman Chris Sutherland said the company would use the IPO proceeds to continue exploring and developing its four projects: Mt Arthur, Peake and Denison, Ruby Hill, and Titan North.

“[The] company intends to undertake an exploration work program in order to identify and define mineral resources capable of sustaining independent and viable mining operations,” he said.

“In future, the company will also seek to identify new opportunities to expand its current portfolio of projects.”

Mr Sutherland is also the chair of listed drone services provider RemSense, and a director of both Southern Ports Authority and Matrix Composites & Engineering.

The Copper Search board also includes chief executive Peter McIntyre, a director of both Nedlands-based Zamanco Minerals and Queensland’s Alligator Energy.

Copper Search is expected to list with a market capitalisation of about $28.8 million.

Fellow copper explorer, Perth-based Recharge Metals, expects to list on the ASX on September 21.

The company, which lodged a prospectus with ASIC on August 10, will issue 25 million shares through its IPO at an offer price of 20 cents.

PAC Partners Securities is acting as lead manager to the raising.

Recharge Metals chairman Simon Andrew said the company's primary focus would be to explore its Brandy Hill South project, in WA's Murchison region.

"The aim of the company's broader exploration strategy is to discover an economic mineral resource with the potential to be developed," he said.

"An economic resource has the potential to generate significant value for shareholders."

Mr Andrew said the funds raised would be used to meet remaining tenement acquisition costs, exploration, and for general administration and working capital purposes.

Meanwhile, the spinout of Bryah Resources’ gold tenements in WA is planning to list on the ASX on September 30.

Star Minerals will issue 15 million shares through its IPO (not underwritten), at a price of 20 cents each.

The West Perth-based company says it has already received $1.2 million in commitments.

Its initial focus will be on developing its Tumblegum South gold project near Meekatharra, which has a granted mining lease and an inferred resource of 600,000 tonnes at 2.2 grams per tonne of gold for 42,500oz.

In a replacement prospectus lodged with ASIC on August 9, Star chairman Ian Stuart said Tumblegum South was located in an area well served by mining infrastructure.

“The directors and management team will leverage existing relationships, mining plant and infrastructure wherever and whenever possible to achieve a low-risk and well-timed production outcome,” Mr Stuart, also the chair of Bryah Resources, said.

“Discussions are under way with a number of providers to accelerate the drilling, test-work and approvals programs to define an indicated and measured resource, and to bring the project to production.”

The Star board also includes chief executive Greg Almond, a past principal geologist and superintendent with Fortescue Metals Group.

Star's other project, West Bryah, is a 350 square kilometre tenement package prospective for gold, copper, and other base metals.

Last week, Ardea Resources announced the proposed spinout and subsequent listing of its gold tenements in WA, held by Kalgoorlie Gold Mining.

The demerger will occur via an in-specie distribution of 35 million KalGold shares to Ardea shareholders, who will also be prioritised in the IPO.

KalGold will issue 60 million shares at 20 cents each, with the proceeds to go towards exploration and project development.

The move will allow Ardea to focus on developing its Kalgoorlie nickel project, with the company to seek shareholder approval for the demerger at an EGM later this year.

The company has appointed amicaa and MST Financial as joint lead managers to the IPO.

It has not yet lodged a prospectus with ASIC.


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