Megado makes ASX debut

Megado Gold began trading on the ASX this morning after a successful $6 million IPO.

The junior explorer, which has focused most of its attention on highly prospective gold deposits in Ethiopia’s titular Megado Belt, now has about 72 million shares on issue in total with a market capitalisation of approximately $18 million.

Its listing comes just one week after Miramar Resources, which will focus on prospective gold mines in Western Australia, raised $8 million through its IPO.

Megado has already been granted five permits and one license to explore about 700km² of area in Ethiopa’s southern and western regions, with drilling on its first project to begin in the coming weeks.

Chief executive and managing director Michael Gumbley thanked shareholders this morning for their support and confirmed the company was targeting an early November date to begin drilling.

“Earlier this year we compiled a vast satellite imagery dataset to identify potential gold targets consistent with the two large operation mines along strike from our permits,” he said.

“Our initial interpretation identified over 50 targets some of which are coincident with major gold-in-soil anomalies and outcropping gold-bearing quartz veins which is really exciting.”

The company was trading at $0.26/share as of 3:30pm AEDT, up $0.02 on opening.