04/08/2017 - 14:21

New gold IPO as explorers relist

04/08/2017 - 14:21

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A new gold exploration company led by former Doray Minerals boss Allan Kelly and backed by Evolution Mining has announced plans to list on the ASX, whilst two other junior miners have joined the bourse after completing backdoor listings.

New gold IPO as explorers relist
Allan Kelly is managing director of Riversgold. Photo: Attila Csaszar

A new gold exploration company led by former Doray Minerals boss Allan Kelly and backed by Evolution Mining has announced plans to list on the ASX, whilst two other junior miners have joined the bourse after completing backdoor listings.

Riversgold lodged its prospectus today, with plans to raise a minimum of $5 million and up to $8 million through an initial public offering, which will be priced at 20 cents a share.

The company is led by Mr Kelly and former Sirius Resources director Jeff Foster.

It has also received backing by national gold miner Evolution, which has committed to $2.5 million of Riversgold’s IPO and will end up owning between 13.6 per cent and 16.2 per cent of the company upon its listing.

Riversgold will join the bourse with a portfolio of exploration projects located in the Goldfields, as well as in Alaska and Cambodia.

The IPO will open later this month, with the company hoping to begin trading during the fourth quarter of 2017.

“New mineral discoveries create the greatest value for shareholders and the Riversgold strategy and skill set is firmly focused on what is the most rewarding area of the project value curve,” Mr Kelly said.

Riversgold has an existing portfolio of early stage projects in world-class gold terrains and through exploration and acquisition we intend to build a portfolio of high-quality gold assets.

“Our intention is to continue to refresh our portfolio and monetise projects at the appropriate time in the project life cycle through partial/full sale and/or joint ventures to maximise shareholder returns.

“Securing the support of one of Australia’s premier gold companies in Evolution Mining is a strong endorsement of our strategy and the proven ability of the Riversgold team to generate significant shareholder value.”

News of Riversgold’s IPO plans came as EHR Resources began trading on the ASX following the completion of a reverse takeover of Cott Oil and Gas.

EHR raised $2 million as part of its relisting, which was priced at 7 cents a share, and has acquired a 25 per cent stake in the La Victoria gold-silver project in Peru from Eloro Resources.

EHR shares were up 1 cent to 8 cents a share ahead of the close of trade.

Meanwhile, Pure Minerals also began trading on the ASX today after completing a reverse takeover of Perth-based Eagle Nickel.

Pure, which is based in Victoria but holds 80 per cent ownership of the Morrissey Hill lithium project in the Gascoyne, raised $4.5 million as part of its backdoor listing priced at 2 cents a share.

At 1:50pm, its shares were worth 1.9 cents each.

Pure also owns the Battery Hub manganese project and an 80 per cent stake in the Mt Boggola copper project, which are also located in the Gascoyne.

West Perth-based Xcel Capital acted as lead manager to the Pure raising.

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