Perth-based Star Minerals has announced that it has received AUS$5 million in pledges and its gold Initial Public Offering (IPO) is on track to launch on the Australian Securities Exchange (ASX) in the first week of October 2021.
Capital raising is expected to be completed by 24 September 2021.
Star Minerals’ flagship asset is the mine-ready gold resource at Tumblegum South, 40 km south of Meekatharra in Western Australia. Tumblegum South is currently owned by Bryah Resources.
Sydney-based Magnolia Capital Group recently pledged to take up AUS$2.5 million of the AUS$5 million sought for the Star Minerals IPO. Star Minerals will use the funds to buy Tumblegum South for AUS$500 000 in cash, 9 million shares, and 7 million performance rights.
Star Minerals Chief Executive Officer, Greg Almond, coments:
“We are delighted to be taking this mine-ready deposit to the next stage and looking forward to ringing the bell in early October.
“An extensive drilling campaign is planned. This campaign is likely to start before Christmas 2021. Our point of difference to other gold IPOs is we have an actual gold resource and a pathway to gold production. The market has recognised that, and it has been an important factor in the successful fund raising – investors are impressed that we are bringing a mine-ready asset to market.
“The outlook for the gold price is expected to remain high, and this IPO has capitalised on that trend.
“Initial funds will be focused on completing drilling, environmental, and engineering work in order to get Tumblegum South ready to mine. The intention is to mine the pit using a contract fleet, at an appropriate rate, and sell ore to a processing partner. The initial operation will be of low capital intensity, and that process will provide a cash influx to fund our further activities.”
The offer was priced at 20 cents a share. At Tumblegum South, there is an Inferred Resource of 600 000 t at 2.2gpt Au (42 500 oz of gold). A Mining Lease has already been granted.
Read the article online at: https://www.globalminingreview.com/mining/22092021/star-minerals-closing-in-on-western-australian-gold-ipo/