Peel Mining spin-out Saturn Metals began trading on the ASX today after the gold explorer raised $7 million through an initial public offering.
Peel announced plans to spin-out its Apollo Hill gold project near Leonora in September last year.
Saturn sold 35 million shares at 20 cents each with Patersons Securities acting as lead manager to the offer.
The company is led by managing director Ian Bamborough, who was previously chief executive of ASX-listed Spectrum Rare Earth and currently holds directorships with private exploration companies Roman Road and Reef Mining.
Peel managing director Rob Tyson is Saturn’s executive chairman while Andrew Venn is a non-executive director.
Proceeds from the offer will be used for exploration at the Apollo Hill project, according to Mr Tyson.
“The purpose of the offer is to provide funds to immediately commence exploration on the company’s Apollo Hill and Ra Resource areas, conduct further exploration activities within those areas to identify and grow new higher-grade gold lode-vein exploration targets and commence a cost-effective exploration program across the tenement package seeking to identify a large new Archaean lode gold deposit,” he said
Shares in Saturn finished the day at 21.5 cents each.