16/04/2008 - 22:00

Richmond’s public push

16/04/2008 - 22:00

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Mineral exploration company Richmond Mining Ltd is set to go public, with a listing on the Australian Securities Exchange planned for late May.

Mineral exploration company Richmond Mining Ltd is set to go public, with a listing on the Australian Securities Exchange planned for late May.

With a suite of resource projects in Western Australia and New South Wales, Richmond has raised the $3.5 million capital it needed, meaning the float is fully subscribed.

Richmond will use $3.1 million of the capital raised on further exploration, while $100,000 will go towards generating new projects, $330,455 on working capital and $300,000 will cover the expenses of the offer, including broker’s fees.

Non-executive director Jim Malone, who’s been in charge of the company’s capital raising and was once a stockbroker for Hartley Poynton, said despite a volatile stock market, listing on the ASX was “the way to go”.

“We’ve got good projects we’re looking at that we need to be working on immediately,” Malone told WA Business News.

“While it might not be the best time to do a float, we’ve done floats before successfully.

“It’s not a big IPO and we’ve got good support, so timing from that point of view is irrelevant.”

Richmond has four mining projects in WA and one in NSW near Canberra, with nickel, gold, platinum, copper and uranium the main targets.

Chairman Howard Dawson, a director of Latin Gold Ltd, which floated in 2001, and executive chairman of Ausmet Resources Ltd, said Richmond’s Loongana project on the Nullarbor Plain was an exciting prospect.

The site represents one of the largest untested nickel targets in Australia, where the company is currently prioritising drill locations over a 40-kilometre stretch of buried mafic and ultramafic complex.

“The project is virtually untested with only two holes from the limited previous exploration reaching basement,” Mr Dawson said.

“Both of these successful holes intersected zones anomalous in platinum minerals and confirmed the anomaly to be the result of a buried mafic-ultramafic complex.”

Richmond’s Narracoota project, which straddles the Murchison River north of Meekatharra, has ready-to-drill gold, copper and nickel targets, while its Throssell project at the edge of the Yilgarn Craton has buried greenstones and uranium deposits.

Its fourth WA project, at the Mundong Bore, will target sandstone-hosted uranium deposits, while tests in the Mayfield project in NSW have identified targets with “polymetallic mineral potential” of copper-zinc-lead-silver.

Mr Dawson said although the float was fully subscribed, the key to any investment in Richmond was a decision to “support a company engaged in the exploration and acquisition of projects where potential success will be defined by significant shareholder returns”.

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