24/06/2011 - 13:12

Naracoota lists after $5 million IPO

24/06/2011 - 13:12

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Gold and copper explorer Naracoota Resources has listed on the Australian Securities Exchange after its $5 million initial public offering closed early and oversubscribed.

Naracoota lists after $5 million IPO


Gold and copper explorer Naracoota Resources has listed on the Australian Securities Exchange after its $5 million initial public offering closed early and oversubscribed.

The IPO was priced at 20 cents a share and managed by Patersons Securities.

Naracoota will list with a market capitalisation of $9.5 million at the IPO price and retain $4.5 million in cash.

Managing director Steve Crabbe said Naracoota had been buoyed by the response to the offer.

"WE believe that this outcome is a reflection on the quality of Naracoota's project's and the highly experienced management team," Mr Crabbe said.

Naracoota owns mining tenements in the copper rich Doolgunna/Peak Hill region, near Sandfire Resources' DeGrussa copper project.

The proceeds of the IPO will go towards funding the completion of tenement acquisitions within the Horseshoe and Fraser project areas at Doolgunna and undertake exploration of those projects.

"We are guided and highly encouraged by historical works on parts of our tenement package and plan to apply modern exploration techniques to further enhance our understanding of the area," Mr Crabbe said.

"The company will commence a geophysical program t further develop its exisiting walk-up drill targets, as well as identify new shallow and deep copper and gold targets that are familiar to the Doolgunna/Peak Hill region."

Naracoota's shares commenced trading at 11.00AM (WST) and closed unchanged at $0.20 with 270,000 shares exchanging hands during the 3 hour period.

 

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