Western Australian based gold and base metals exploration junior Rubicon Resources Ltd has lodged a prospectus to raise $10 million through an initial public offering.
Western Australian based gold and base metals exploration junior Rubicon Resources Ltd has lodged a prospectus to raise $10 million through an initial public offering.
The IPO is for up to 50 million shares at 20 cents per share.
The offer is scheduled to open on 22 December, with trading of the shares on the ASX expected to commence in early February 2007.
The company has secured an agreement to acquire from Heron Resources the rights to seven gold and base metal projects largely in Western Australia, covering some 10,000km², including two major projects (3,000km²) in the North-Eastern Goldfields.
The funds raised will be used by Rubicon to explore its projects so as to discover new mineral resources that can be converted to reserves leading to profitable mining. The target commodities are specifically gold, copper and zinc, along with other base metals.
Intersuisse Limited is the Sponsoring Broker to the issue.
Below is the full announcement:
Rubicon Resources Limited (Rubicon), a West Australian-based gold and base metals exploration Company, has lodged a prospectus with the Australian Securities and Investments Commission to raise to $10 million (minimum subscription $7.5 million) through an Initial Public Offering (Offer) of up to 50 million shares at $0.20 per share.
On completion of the Offer, Rubicon will have up to 75.75 million shares on issue and a market capitalisation of $15.15 million based on the Offer price of $0.20 per share. The shares offered under the prospectus will represent approximately 66% of the expanded issued capital of Rubicon following completion of the Offer.
Intersuisse Limited is the Sponsoring Broker to the issue.
The Company has secured an agreement to acquire from Heron Resources (ASX: HRR) 100% of the rights to seven gold and base metal projects largely in Western Australia, covering some 10,000km², including two major projects (3,000km²) in the North-Eastern Goldfields.
Heron shareholders will be offered a priority allocation of 15,000,000 shares or 30% of the new shares being offered under the prospectus. Heron will also hold 25,000,000 shares in Rubicon upon listing on the ASX which it intends to issue to Heron shareholders on a pro-rate basis within 12 months of the listing.
The funds raised will be used by Rubicon to explore its projects so as to discover new mineral resources that can be converted to reserves leading to profitable mining. The target commodities are specifically gold, copper and zinc, along with other base metals.
The Company's key projects consist of large contiguous holdings in well mineralised provinces including;
- The 1,470km² Yindarlgooda Project (granted tenements and applications), centred 50 kilometres east of Kalgoorlie, with gold and volcanic massive sulphide (VMS) base metal potential and known gold mineralization present.
- The 1,410km² Desdemona Project (granted tenements and applications), located along the productive Keith Kilkenny Fault Zone southeast of Leonora, prospective for gold and VMS base metals.
- The 2,900km² Warburton Project (all applications), located in the Western Musgrave Province, with known copper mineralisation and strong potential for Iron Oxide Copper Gold (IOCG) and copper-nickel deposits.
Rubicon's Board and management team brings together extensive technical and corporate experience in exploration, international project acquisition, resource development and mine management.
Rubicon Chairman, John Shipp, who recently retired as President of Barrick Gold Corporation's Australia Africa Business Unit, is a mining engineer with 40 years experience. He was also previously General Manager of both the KCGM Superpit in Kalgoorlie and the Boddington Gold Joint Venture, respectively Australia's largest and second largest gold mines.
Rubicon Managing Director, Peter Eaton, has more than 25 years experience in exploration and mineral production in Australia and overseas. Most recently he was General Manager - Geology and Business Development with Aditya Birla Minerals Limited, which during his tenure completed a feasibility study on, and commissioned, the Nifty underground copper mine.
Ian Buchhorn, who is also Managing Director of Heron, will join Rubicon's board as a non-executive director. Mr Buchhorn has been involved in the mining industry for over 30 years and has recently overseen the growth of Heron's Kalgoorlie Nickel Laterite project into one of the world's largest undeveloped nickel resources.
Rubicon Chairman, John Shipp said the Company was committed to a strategy of being an active and well-resourced explorer.
"The Board has experience in running public companies in a cost-effective manner to ensure that maximum benefit is gained from exploration funds," Mr Shipp said.
"While the lion's share of management's attentions will be focused on our current projects, we will also be reviewing and assessing advanced exploration, development and operating opportunities both domestically and offshore given our corporate and operational experience."
Rubicon Managing Director Peter Eaton said the Company will use the funds raised through the IPO to fund an aggressive $7 million, two-year exploration program across its prospective portfolio.
"We have a well balanced portfolio mixing higher risk, high reward projects with projects containing existing gold mineralisation in known mineral provinces," Mr Eaton said.
"In the first two years the majority of these funds will be spent targeting our three key projects - Yindarlgooda, Desdemona and Warburton.
"At the Warburton project we will spend about $1.6 million on focused exploration programs targeting IOCG copper-gold, copper-nickel and Mt Isa-style base metals.
"On the Goldfields projects - Desdemona and Yindarlgooda - where we already have known gold mineralisation, and low grade VMS occurrences, we will spend almost $4 million on early drill testing of gold targets, data compilation, detailed interpretation and the application of new geological concepts and modern exploration methods to the discovery of VMS deposits."
The Offer is scheduled to open on 22 December, with trading of the shares on the ASX expected to commence in early February 2007.
