Local junior explorers Magma Metals and Trafford Resources have completed their initial public offerings oversubscribed, with capital raisings of $6 million and $4 million respectively.
Local junior explorers Magma Metals and Trafford Resources have completed their initial public offerings oversubscribed, with capital raisings of $6 million and $4 million respectively.
Magma Metals Ltd is a spin-out of gold and uranium explorer Metex Resources. Magma, which has rights to earn majority interests in seven nickel-copper-PGE projects in Western Australia and Canada, listed ahead of time on the Australian Stock Exchange, following the early closure of its IPO.
The company debuted on the ASX last Friday at 20 cents, but closed at 18 cents down two cents on its issue price.
Magma Metals managing director Dr Keith Watkins said the money raised through the IPO would be used to fund aggressive exploration programs aimed at defining resources on its projects.
“Our preliminary efforts will be on those projects offering the greatest potential for early resource delineation and development,” he said in a statement.
The highly prospective GSP prospect at the Mt Jewell Project in the East Yilgarn region of the state is the company’s initial focus post-listing, with drilling scheduled to commence in mid-June to test potential extensions to the current nickel sulfide resource.
Magma also intends to undertake high resolution aeromagnetic and radiometric surveys at Thunder Bay North of Tib Lake in Ontario, Canada, in mid-June to define targets for drilling in August and September 2006.
The Eastman project in the East Kimberly will also receive a high resolution aeromagnetic survey and drilling will commence in August to define copper-zinc resources.
Magma said fieldwork would be undertaken later in the year at other Magma projects to define targets for drilling.
Magma’s offer was based on the issue of 30 million shares at 20 cents each.
Dr Watkins was the former geologist for Sons of Gwalia and Goldfields Ltd and shares the board with former SOG colleague Ralph Porter.
Meanwhile, West Perth-based gold, copper and uranium explorer Trafford Resources Ltd, which is led by former Taipan Resources and Templar Resources head Ian Finch, raised $4 million ahead of listing, oversubscribed by $1 million.
In the company’s prospectus, Mr Finch said management had identified opportunities at the Wilcherry Hill copper, gold, uranium project in the Gawler Craton region of South Australia and at the Lynas Find gold project in the Pilbara region of WA.
“Both areas show potential to substantially benefit from increased commodity prices and the application of modern exploration technologies,” he said.
At Lynas Find, Trafford is working towards establishing a resource of 500,000 ounces before starting a feasibility study considering a mining operation.
Trafford’s objective is to build upon the known assets at both project areas and advance them as rapidly as is possible.
“It also intends to increase this already substantial asset base by further acquisition of, or joint venture into, properties of strategic relevance,” he said.
The company is due to list on June 14.