Western Australian-based minerals group Magma Metals Ltd is to list on the Australian Stock Exchange tomorrow, ahead of time, after its $6 million capital raising recently closed early and oversubscribed.
Western Australian-based minerals group Magma Metals Ltd is to list on the Australian Stock Exchange tomorrow, ahead of time, after its $6 million capital raising recently closed early and oversubscribed.
Magma managing director Dr Keith Watkins said he was delighted by the level of investor support Magma had received for its IPO, with the Company now looking forward to commencing drilling and field exploration at its advanced nickel-copper-PGE (Platinum Group Elements) and copper-zinc projects in Australia and Canada.
The funds will be used to pursue exploration programs, and initial efforts will be focused on projects offering the greatest potential for early resource delineation.
Magma's main focus post-listing will be on the highly prospective GSP prospect at the Mt Jewell Project in the East Yilgarn region of WA, where drilling is scheduled to commence in mid-June to test potential extensions to the current nickel sulphide resource.
Magma's offer was based on the issue of 30 million shares at 20 cents each.
On listing, the company will have approximately 59 million shares on issue giving it a market capitalisation of approximately $12 million (at the 20 cent share issue price).
THE FULL RELEASE APPEARS BELOW.
MAGMA METALS TO LIST ON ASX TOMORROW FOLLOWING SUCCESSFUL $6M IPO.
DRILLING AND FIELD EXPLORATION TO COMMENCE IN AUSTRALIA & CANADA IN MID-JUNE.
Western Australian minerals company, Magma Metals Limited, will list on the Australian Stock Exchange ahead of schedule at 10.30am (WST) tomorrow, Friday 2 June 2006, after the Company's $6.0 million IPO recently closed early and oversubscribed. Magma's ASX Code is: MMB.
Managing Director, Dr Keith Watkins, said he was delighted by the level of investor support Magma had received for its IPO, with the Company now looking forward to commencing drilling and field exploration at its advanced nickel-copper-PGE (Platinum Group Elements) and copper-zinc projects in Australia and Canada.
"The money raised through the IPO will be used to fund aggressive exploration programs aimed at defining resources on our projects," he said. "Our preliminary efforts will be on those projects offering the greatest potential for early resource delineation and development."
Magma's initial focus post-listing will be on the highly prospective GSP prospect at the Mt Jewell Project in the East Yilgarn region of WA, where drilling is scheduled to commence in mid-June to test potential extensions to the current known nickel sulphide resource of 86,000 tonnes at 2% nickel.
Magma also intends to undertake high resolution aeromagnetic and radiometric surveys at Thunder Bay North and Tib Lake in Ontario, Canada, in mid-June, to define targets for drilling in August and September 2006.
A high resolution aeromagnetic survey is also planned for the Western Australian Eastman project in the East Kimberley as well as drilling to define copper-zinc resources in August. Dr Watkins commented that a number of other targets at this project would also be drilled during this program.
"Fieldwork will also be undertaken at other Magma projects to define drilling targets to be assessed later this year," he added. "The next few months will be particularly exciting for Magma with a continuous news flow anticipated from these exploration programs on our projects both in Australia and Canada."
Magma Metal's IPO closed on 19 May 2006, after the Company successfully raised $6.0 million through the issue of 30 million shares at 20 cents each. On listing, Magma Metals will have approximately 59 million shares on issue giving it a market capitalisation of approximately $12 million at the 20 cent Public Offer share issue price.
BACKGROUND - ADVANCED PROJECTS IN WORLD-CLASS MINERAL PROVINCES
Magma Metals Limited has assembled a portfolio comprising the rights to earn majority interests in seven nickel-copper-PGE projects in the well-established mineral provinces of the East Yilgarn and East Kimberley in Western Australia and the Thunder Bay region of Ontario, Canada.
In the East Yilgarn, Australia's premier nickel production province, Magma has a 1,800km2 ground position spanning the Mt Jewell, Laverton and Roe Projects. Magma's initial focus will be on the Mt Jewell Project (Magma earning a 60% interest), which includes the GSP deposit (Inferred Resource of 86,000 tonnes at 2% nickel) as well as a number of other drill targets where previous ore-grade intersections have been recorded.
The Mt Jewell Project is located some 20km north-west of the Silver Swan and Black Swan Nickel mines (operated by LionOre Mining International Ltd), where the existing concentrator is subject to a major expansion. The potential strike and depth extensions of the GSP resource, together with other nearby priority drill targets, will be a key focus for Magma as a potential near-term development opportunity.
In the East Kimberley, Magma has a 550km2 tenement holding in the emerging Halls Creek nickel-copper-PGE province which hosts the operating Sally Malay nickel-copper mine and the Panton Sill PGE deposit as well as the Koongie Park copper-zinc deposits. Its two East Kimberley projects, Eastman and Laura River, are prospective for nickel, copper, PGE's and zinc, while the Laura River Project is also prospective for gold and uranium, which will also be assessed as part of planned exploration activities.
The Eastman Prospect has several drill intersections of copper and zinc mineralization including 12 metres at 5.7% zinc and 3.2% copper, with the potential for delineation of an economic resource.
