Search

Jackson helps feed gold fever

With gold edging up to and beyond $US310 an ounce, stockbrokers and investors alike are rediscovering their confidence in a sector that until recently looked like remaining in the doldrums.

Gold certainly seemed to have lost its appeal as a safe haven in uncertain times.

But a recent burst in interest in the yellow metal, particularly from Japanese investors deserting the yen, has alleviated these concerns.

In the past week, two companies have lodged prospectuses for an initial public offering – Image Resources NL and Jackson Gold Limited.

Each hopes to raise up to $4 million.

Jackson Gold Limited managing director Andrew Viner, who left Gindalbie Gold late last year to strike out on his own, said he and partner Mark Gwynne had to move very quickly.

“We realised that an opportunity was emerging because the gold price was where it was,” Mr Viner said.

“Once you decide the market has turned you can bet your bottom dollar that their will be others jumping in as well.

“The pool of funds that is to be invested in the gold industry in not never ending.”

Mr Gwynne said having a firm relationship based on respect and trust meant Jackson had managed to crystallise deals with both Hamill Resources Limited and Croesus Mining NL very quickly.

“The thing that really hit me was the support we got from our peers. I personally think not everyone can float. Its not a boom time but it’s a very optimistic market,” he said.

Jackson Gold has secured five projects, with the centrepiece being the Claypan Dam and Wallbrook exploration projects located in the eastern Goldfields.

Hamill Resources Limited is the main vendor behind the project and will have 15 per cent of the issued capital on listing, provided the $3.5 million target is raised through the issue of 17.5 million 20 cent shares.

Hamill resources technical director Clive Jones has joined the Jackson board and Croesus Mining NL will take a 6.6 per cent interest in the company.

Stockbroker Hogan & Partners’ Terry Hogan said two things stood out with the new company.

“I think the main point is that they have a strong management team,” Mr Hogan said.

“The second point is that they have advance projects.

“The Claypan Dam project location should be of interest to the mills in the area.

“It has a good location and it has a high level of oxidised ore that is located close to the surface and will be able to be mixed by the mills with the primary rock.”

Claypan Dam is located near mills sited at Kanowna Belle and Paddington.

The company has budgeted to spend around $1.1 million per annum in the next two years.

Croesus has already defined a resource at Claypan Dam at the Crossroads prospect of 560,000 tonnes at 2.5 grams per tonne of gold.

p See Inage Resources and Amity Oil reports, page 15.

Add your comment

BNIQ sponsored byECU School of Business and Law

Students

6th-Australian Institute of Management WA20,000
7th-Murdoch University16,584
8th-South Regional TAFE10,549
9th-Central Regional TAFE10,000
10th-The University of Notre Dame Australia6,708
48 tertiary education & training providers ranked by total number of students in WA

Number of Employees

BNiQ Disclaimer