Subiaco-based Mallee Gold Corporation Ltd has announced plans to raise $5 million in its initial public offer, to raise funds for exploration of its nine goldfields tenements.
Subiaco-based Mallee Gold Corporation Ltd has announced plans to raise $5 million in its initial public offer, to raise funds for exploration of its nine goldfields tenements.
The company, which will issue 25 million shares at 20 cents each to raise the money, has assembled a suite of wholly-owned tenements located between Norseman and Esperance.
Mallee Gold has also entered into an agreement to farm into 70 per cent of the Water Tank Project currently held by Royal Resources Ltd.
The 1,185 square kilometres of exploration holdings and applications host primarily gold-based brownfields and greenfields projects along with nickel, uranium and copper prospectivity.
Mallee Gold will also issue one new attaching option for every two shares issued exercisable at 20 cents at any time on or before 30 November 2012.
The company is chaired by King Leopard Diamonds Ltd chairman Keith Hood, who is joined on the board by Global Nickel Investments Ltd managing director Andrew Mortimer, Simon Gilbert and Ashley Hood.
Mallee Gold plans to appoint its current investigating accountant Rix Levy Fowler as auditor, should it secure the approval of the Australian Securities and Investments Commission for current auditor Malcolm Heasman to resign.
Cooper Capital and Investments Pty Ltd - as authorised corporate representative of RM Capital Pty Ltd, will serve as lead manager, while Price Sierakowski will provide legal advice.
The Company will not retain any right to accept oversubscriptions. The offer is not underwritten and the minimum subscription level is $2 milllion.
The offer will open on November 23, to close on December 10.
The full text of a company announcement is pasted below
Nine exploration projects covering gold, nickel, copper and uranium prospects in areas of rich mineralisation between Kalgoorlie and the southern port of Esperance in Western Australia are the subject of a $5 million Initial Public Offer (IPO) and proposed ASX listing announced today by Mallee Gold Corporation Ltd.
Mallee Gold is offering up to 25 million shares at 20 cents each to raise up to A$5 million with one free attaching option for every two shares issued with an exercise price of 20 cents and an expiry date of 30 November, 2012.
The Offer includes an entitlements issue of options within six months from the Company's ASX listing, on a two-for-five basis, exercisable on or before 30 November 2014 at 25 cents per option.
Under the Mallee Gold prospectus lodged with the Australian Securities Investments Commission, the proposed Offer is due to open on 23 November 2007 and close on 10 December 2007. The Company plans to list on the ASX around 20 December 2007.
Assuming full subscription under the Offer, Mallee Gold will be capitalised on listing at approximately A$9.5 million.
The Company has assembled a suite of wholly-owned tenements located between Norseman and Esperance. Mallee Gold has also entered into an agreement to farm into 70% of the Water Tank Project currently held by Royal Resources Limited.
The 1,185 square kilometres of exploration holdings and applications host primarily gold-based brownfields and greenfields projects along with nickel, uranium and copper prospectivity.
"We aim to be an exploration company of significance in this highly promising province of southern Western Australia," Mallee Gold's Executive Chairman, Mr Keith Hood, said today.
"The Company has already employed the latest cost effective techniques to explore tenements before and during drilling and sampling operations," Mr Hood said.
"Our assets include a mining lease and mining lease application, along with various exploration and prospecting licences and applications, providing the potential for near term production with considerable exploration upside.
"The combination provides an excellent platform for near-term production and upside for new discoveries.
"Significantly, the tenements are all located in the Archaean Norseman greenstone terrain, more commonly known as the Eastern Goldfields. This province is richly mineralised, particularly in gold and nickel and is home to a number of highly successful mines, historically and current producers."
The Company's exploration footprint covers nine projects - Water Tank, Duchess, Lady Mary South, Oscar Range, Jimberlana South, Brumby Flats, Lake Gilmore, West Grass Patch and Mount Ridley.
Mr Hood said that once listed, Mallee Gold's initial exploration focus - an approximate $1.27 million spend in the Company's first 12 months assuming full subscription - would be on data acquisition and interpretation to identify surface and rotary air blast drill targets, as little previous work had been conducted over the tenements.
Mallee Gold's Board includes three non-executive Directors - resources investor and company director, Mr Andrew Mortimer; Chief Metallurgical Officer, Mr Simon Gilbert; and Chief Operations Officer, Mr Ashley Hood.
