Metex Resources Ltd spin-out Magma Metals Ltd has lodged a prospectus for its $6 million initial public offering to fund exploration on three nickel projects.
The budgeted exploration expenditure will be utilised at the company's projects in the East Yilgarn and East Kimberley regions of Western Australia and the Thunder Bay region of north-west Ontario, Canada.
The offer is for 30 million shares in Magma at a price of 20 cents per share to raise up to $6 million, The minimum subscription is for 20 million shares to raise $4 million.
The company has acquired the rights to earn majority interests in seven nickel-copper-PGE (Platinum Group Elements) exploration projects in the East Yilgarn and East Kimberley regions of Western Australia and in the Thunder Bay region of north-western Ontario, Canada. The East Kimberley Projects are also prospective for zinc.
In its prospectus, the company said Metex Resources Ltd supported the development of Magma and its IPO. Metex provided initial start-up capital and corporate support and vended the nickel, copper and platinum group element rights to its extensive tenement holdings in WA into Magma.
Each Metex shareholder will be given priority invitation to acquire a parcel of 10,000 shares.
The prospectus was lodged with ASIC on 3rd April and the offer is due to close at 5pm WST on the 22 May 2006.
The offer is not underwritten.
