Paynes Find Gold has opened its $8 million initial public offering ahead of commencing a targeted drilling program in an effort to fast track the company's mine development and production.
Paynes Find Gold has opened its $8 million initial public offering ahead of commencing a targeted drilling program in an effort to fast track the company's mine development and production.
The company will offer 40 million shares at 20 cents per share.
On completion of the IPO Paynes Find will have a pro forma market capitalisation of $20 million.
The company's managing director Adam Bennett said he was very pleased to invite investors to subscribe in the public offer.
"Paynes Find Gold has acquired some highly prospective projects covering practically all of the historic Paynes Find Goldfield," he said.
"The best place to make gold discoveries is close to major geological trends known to host world class deposits, so we are very excited to further explore this historically rich area" said Mr Bennett.
See company statement below:
Paynes Find Gold Ltd ("Paynes Find Gold") has announced the opening of its Initial Public Offering ("IPO") of 40 million shares at 20 cents per share, to raise up to $8 million. Applicants will also receive one free attaching option, expiring 1 November 2012 at an exercise price of 20 cents for every 4 shares issued. On completion of the Offer, Paynes Find Gold will have a pro forma market capitalisation of $20 million.
Paynes Find Gold, based in Perth, is focused on the definition and development of gold deposits at the historic Payne's Find discovery in Western Australia. Paynes Find Gold is the first mining company to control practically all of the historic Paynes Find Goldfield, from the old Shamrock mine to the Bluebell, covering a strike distance of about 3.5KM.
An independent consulting geologists report conducted by Al Maynard and Associates Pty Ltd, included in the prospectus, has identified a target potential range of tonnes and grade from 50m to 300m depth of 32Mt to 35Mt at a grade range from 4.0 to 6.0g/t gold1.
Paynes Find takes its name from Thomas Payne, who was the first prospector to register (1911) a lease for gold mining in the area with the Mines Department of Western Australia. Tom Payne's leases were productive for many years. During the 1930s, about 500 people lived with their families, prospecting for gold by underground prospecting and dry blowing, hoping to strike it rich. During World War II many men were called away leaving only a few families remaining.
In 1987 the State Government Battery was sold to the Taylor family and is still operating today as the Paynes Find Gold Battery. The Taylor family have owned and mined the majority of leases since 1932.
The acquisition of the sought after tenement package is reflective of the Company's strategy of building a portfolio of highly prospective gold and minerals projects that will deliver superior returns to shareholders.
The Company's Managing Director, Adam Bennett, said he was very pleased to invite investors to subscribe in the public offer of Paynes Find Gold.
"Paynes Find Gold has acquired some highly prospective projects covering practically all of the historic Paynes Find Goldfield. The best place to make gold discoveries is close to major geological trends known to host world class deposits, so we are very excited to further explore this historically rich area" said Mr Bennett.
"Following the IPO we intend to commence a targeted but comprehensive drilling program with the longer term focus to fast track mine development and production".
The offer is scheduled to close on 15 October 2010 with trading of the shares on the ASX scheduled to commence in late October 2010.
Anyone wishing to apply for shares will need to complete the application form that is included in the prospectus. A copy can be downloaded from http://paynesfindgold.com/ or a hard copy can be provided upon request.
1 The target potential described above is conceptual in nature and does not form any part of a resource. Future work may or may not define part or whole of the potential target mineralisation or a resource. There is no guarantee that any re-classification to a resource of JORC Code guideline status will occur in the short term or at all.