Westar launches $5m IPO

Westar Resources has joined the rush of gold IPOs this year, seeking to raise $5 million to explore its projects in Western Australia.

The company, based in Perth, has projects in the Goldfields, Mid West and Pilbara regions.

That includes two joint ventures with mid-tier goldminer Ramelius Resources.

Westar says its initial focus will be exploring its Winjangoo and Coolaloo projects in the Mid West, which are both in close proximity to a number of mining operations and processing plants.

Chairman Simon Eley said each of the company's projects had a number of exciting targets.

Its initial public offering, led by Discovery Capital Partners, will offer 25 million shares priced at 20 cents each to raise $5 million.

Upon completion, Westar expects to hold a market capitalisation of about $10 million.

The company is seeking to list on the ASX in December.

It will likely join recently listed Miramar Resources, which raised $8 million from its IPO, along with Siren Gold ($10 million) and North Stawell Minerals ($20million).

Pathfinder Resources, which raised $6 million from its IPO, is scheduled to list on the ASX tomorrow.