Pearl Gull lists after $4m raise

Pearl Gull Iron has had a quiet start to its first day of trading, as it continues to explore its Cockatoo Island tenements off the coast of Western Australia.

The Russell Clark-chaired company listed after raising $4 million earlier this month, the maximum under an initial public offering which was priced at 20 cents a share.

Canaccord Genuity, Gilbert + Tobin, and Taylor Collison were joint lead managers to the raise.

Pearl Gull was trading at 17 cents a share at 3:20pm AEST, down 30 per cent on its IPO price.

Director Jonathan Fisher, also the chief financial officer of TNG, said the business was well funded to continue its exploration and drilling programs on Cockatoo Island.

“We believe we have a potentially world-class iron ore project on a granted mining lease in a tier one jurisdiction,” he said.

“We have already commenced our drilling program as outlined in our prospectus with focus on the southernmost (Switch Pit) and northernmost (North Bay) parts of our tenure area.”

First core assays were expected in the coming weeks, Mr Fisher said.

Parent company Cockatoo Iron NL emerged as Pearl Gull’s biggest shareholder, with about a 43 per cent stake in the business.

The Pearl Gull board includes director Alex Passmore, also a director of Cockatoo Iron.

Messrs Passmore and Fisher are acting in executive capacity until Pearl Gull Iron establishes a full management team.