Melbourne-based shell company Public Holdings (Australia) is set to move into gold exploration after striking a deal to acquire a group of Western Australian gold tenements from prospector Denis O’Meara, while also announcing plans for a $7.5 million capital raising.
Melbourne-based shell company Public Holdings (Australia) is set to move into gold exploration after acquiring a group of Western Australian gold tenements from prospector Denis O’Meara, while also announcing plans for a $7.5 million capital raising.
The company is changing its name to First Au and will purchase two gold tenements in the Pilbara, along with the Gimlet gold project near Kalgoorlie.
Public Holdings will purchase a potential 70 per cent stake in the Emu Creek project, which is located about 25 kilometres north of Novo Resources’ Beatons Creek conglomerate gold project, along with the Talga project, located 30km north-east of Marble Bar.
The new gold explorer will also acquire the Gimlet gold project, 15km north-west of Kalgoorlie.
In exchange the vendors will receive 32.5 million shares in the company and another 13 million shares subject to conditions, along with 3.5 million attaching unquoted options exercisable at 6 cents each, expiring in March 2021.
Public Holdings will also raise up to $7.5 million via the issue of shares at 4 cents each, with a minimum requirement of $5.5 million.
Peregrine Corporate is lead manager and corporate adviser in relation to the acquisition and public offer.
Peregine will receive 10 million shares and 10 million options exercisable at six cents each.
Subject to completion of the deal, existing directors Oreste Biziak, Peter Chapman and Clayton Dodd will resign while Bryan Frost will remain as the executive chairman of the company.
Robert Wilson will be appointed as managing director while Michael Quinert and Damon O’Meara will become non-executive directors.
Mr Wilson was previously chief development officer and general manager development strategy at Atlas Iron and has held roles with Macquarie Capital and Anglo American.
Mr Quinert is a founding partner of Quinert Rodda & Associates while Mr O’Meara, the son of Denis, is co-founder and managing director of landscaping company Outback Trees of Australia.