Juniors jump at good times
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As the mining boom continues, the Western Australian market has seen several junior explorers jumping on the initial public offering bandwagon, with five seeking to raise more than $23 million in the past two weeks.
North Perth-based uranium explorer Aura Energy Ltd, a subsidiary of zinc, gold and silver explorer Drake Resources Ltd, has recently lodged a prospectus for its $4 million initial public offering.
Shareholders in Drake Resources would be able to take advantage of a priority offer to acquire Aura shares. This follows an agreement under which Drake agreed to sell a number of uranium exploration license applications to Aura, including the Altona uranium target near the largest uranium deposit in Western Australia, BHP’s Yeelirrie deposit.
Meanwhile, junior oil and gas explorer Advance Energy Ltd lodged a prospectus for its $5 million initial public offering, with the funds used for continued exploration and development of its three initial projects in Texas, US.
The offer will be used for drilling and completions on its Martin County and Palo Pinto projects and for geological, geophysical and engineering interpretation and evaluation at its Fayette County.
Advance Energy proposed to apply $750,000 of the additional $1 million in oversubscriptions to fund acquisitions of oil and gas assets.
The company is chaired by Advance Healthcare Ltd deputy chairman Alex Bajada, with Anthony Short its managing director.
West Perth-based gold, copper and uranium explorer Trafford Resources Ltd has lodged a prospectus for its $4 million initial public offering and reserves the right to raise a further five million shares. The funds will be used to explore for and develop gold, copper and uranium resources in South Australia.
The company also intends to recommence exploration surrounding the Lynas Find Gold project in the Pilbara region, Western Australia.
Trafford has an option to acquire the Wilcherry Hill Project in South Australia, which the company believes contains gold, copper, base metal and uranium prospects.
Other companies to list include Zedex Minerals and Elemental Minerals.