Sultan debuts after $4.8m IPO

Shares in Sultan Resources began trading on the ASX today, after the company raised $4.8 million via an initial public offering.

Under the offer, West Perth-based Sultan issued 26 million shares at 20 cents each, with Xcel Capital and ARQ Capital acting as joint lead managers.

Xcel’s directors include Edwin Bulseco, who is a former Sultan director, while ARQ director Michael Nitsche is also a former director at Sultan.

RSM acted as investigating accountant while Nova Legal was legal adviser.

The company owns a number of gold and base metals projects in Western Australia, including the Thaduna project and the Lake Grace project.

Sultan is led by managing director Steven Groves, who has previously worked in management roles at BHP Billiton, Newmont Mining and Newcrest Mining, and currently serves as a non-executive director with ASX-listed Six Sigma Metals.

Corporate adviser Jeremy King is the company’s non-executive chair, who also serves on the boards of Red Mountain Mining, DTI Group and Smart Parking, among others.

Lincoln Ho and Ariel Edward King are non-executive directors.

Mr King said the proceeds from the offer would be used for exploration.

“Immediately following the proposed ASX listing, the company will undertake exploration programs on its suite of granted Tenements at the East Tallering, Dalwallinu and Thaduna projects,” Mr King said in a letter to shareholders.

“The exploration program will extend to include the Lake Grace project once these tenement applications are approved.

“The proposed exploration programs will be designed to assess the potential for the presence of potentially economic mineral deposits on each of the licences and the initial results will determine the scope, location and timing of further exploration across the portfolio.”

Shares in Sultan finished the day down 5 per cent at 19 cents each.