Hamill to list early on ASX

INVESTOR interest has swamped another WA junior explorer preparing to list on the Australian Stock Exchange, prompting the directors of Hamill Resources to announce they are confident of closing their float prospectus almost two weeks ahead of schedule.

Hamill managing director Nathan McMahon said the company now expected to debut on the ASX by the end of next week.

The float would raise $4 million, $500,000 more than the company target, and would be oversubscribed.

Mr McMahon said a short gold rally from the middle of the month may have helped, but was probably not the major factor behind interest in Hamill.

“The investment community is crying out for junior gold explorers who are actually going out to do some work,” he said.

The company has options in three prospecting regions in WA and two in Queensland. Keen to produce results, Hamill will use the subscription funds to drill its Mt Ida prospect, north-west of Menzies, at greater depths and over more areas than previously targeted. First results are expected by the end of June.

The forwarded listing means Hamill may pip another WA junior explorer, Westmag, due to list on June 8. Westmag, hoping to be a major magnesia producer, also closed its share offer oversubscribed.

Like Hamill, Westmag offered 20-cent shares, but the number of shares was only 12 million, eight million less than the total offered by Hamill.

Another WA junior gold explorer listed successfully on the ASX last December. Barra Resources has since achieved encouraging drilling results to bring forward plans to mine its First Hit prospect north-west of Kalgoorlie.

Cash flow from the mine is expected to finance further testing of the Riverina region.

First Hit is close to the Barra Riverina gold mine, which also has produced good test results. Barra managing director Bob Colville said all 20 holes the company had drilled in the Riverina gold mine had hit gold.

Barra’s Philips find north of Coolgardie also was promising, Mr Colville said.

First Hit has been estimated to contain 143,000 tonnes of ore with 16.7 grams of gold per tonne.

When last mined in the 1960s, the Timoni mine in Hamill’s Mt Ida prospect produced 265,000 ounces with 16.3 grams of gold per tonne.