Investors have committed $5 million towards the planned IPO of Norwest Gold, a gold and base metal spin-off from Australian Mines.
Norwest announced it would appoint Charles C Schaus as its chief executive and he will receive a base salary of $250,000 per annum.
Norwest secured $1 million in seed funding and investors have committed a further $4 million towards the IPO.
The balance of $2.6 million will be offered to the public in September, with a priority entitlement offer to existing shareholders, as the Perth-based miner aims for a listing by October.
Mr Schaus, who oversaw Plymouth Minerals and Aurox Resources’ ASX-listings, said the $5 million commitment shows the market’s confidence in the company’s asset portfolio.
“There exists genuine potential for Norwest to quickly add value to the copper and gold assets,” he said.
Australian Mines’ gold and base metal projects in Western Australia include Arunta West, Bali, Marriotts, Marymia and Warriedar.
The company said it wishes to focus on its nickel and cobalt projects in the eastern states.
Its flagship project is the Sconi project in northern Queensland, where it recently produced 40kg of battery-grade nickel sulphate and 4kg of battery-grade cobalt sulphate.
Subject to a successful listing, Norwest said it would allocate $3.5 million towards exploration operations at the projects.
Shares in Australian Mines were flat at 8 cents each at the close of trade.