Gold-copper spinout eyes ASX listing

The demerged company of Perth-based Magmatic Resources is seeking to raise $10 million from its initial public offering, which opened today.

Australian Gold and Copper is the spinout of Magmatic’s Moorefield copper project, situated in NSW’s Lachlan Fold Belt.

The business recently acquired two gold projects within the region, Gundagai and Cargelligo, from New South Resources in exchange for a 40 per cent interest in AGC. Magmatic said it would hold the remaining 60 per cent, pre-IPO.

Magmatic, which listed on the ASX in 2017, has asked shareholders to vote in favour of the spinout, ahead of the company’s annual general meeting scheduled for December 18.

A supplementary prospectus has been lodged with the Australian Securities and Investments Commission, with priority offers for Magmatic and NSR shareholders now open.

The IPO, led by broker Taylor Collison, is priced at 20 cents.

Magmatic chairman David Richardson is also chairing AGC, while NSR chief executive Glen Diemar is managing director and chief executive officer, and Ranko Matic a non-executive director.

“AGC’s focus is on exploring its multiple gold prospects that are near surface/outcropping and have open pit potential,” Mr Richardson said in AGC’s prospectus.

“The board believes this will lead to near-term exploration success, building shareholder value early in the history of the company.”

Funds raised from the IPO will go towards a drilling and exploration program.

AGC has also signed binding agreements to acquire further projects from NSR and Magmatic subsidiary Modeling Resources, Mr Richardson said.

Its current project portfolio has four granted exploration licences covering about 1,000 square kilometres.

AGC has targeted an ASX listing for January 5.