Gold explorer Kalgoorlie Gold Mining’s seeking to capitalise on renewed investor interest in the next crop of miners, putting an initial public offering to potential investors.
KalGold, which is to be spun out of ASX-listed Ardea Resources, wants to raise up to $12 million at 20¢ per share in an offer overseen by amicaa and MST.
The brokers will aim to raise $7 million to $12 million, according to the presentation in front of potential investors.
At a $7 million raise, the company would issue 35 million shares and list with a $13.8 million market capitalisation. At the upper end, it would issue 60 million shares for a $21.8 million market cap.
The shareholders would be eligible for one-for-three free attaching options, issued about four months after the IPO.
KalGold’s lead project is Bulong Taurus Gold and, while it is early days, is being pitched as a potential 1 million ounce resource. Bulong is located 30 mins east of Kalgoorlie.
KalGold said it plans to start drilling immediately to confirm historic intercepts. The area has not been drilled since the 1990s and has high-grade, shallow gold mineralisation with depth continuation, the company told investors.
It also has about six other projects.
The general offer closes on October 26, and Kalgoorlie expects to be listed around November 12.
Ardea will retain shares about 9 million shares (of the 84 million to 109 million total shares on issue after the raise). Ardea shareholders will also get about 35 million in-specie shares of KalGold shares for no cost.
It comes as Gold Road Resources and Remelius Resources scrap over ASX-listed junior Apollo Consolidation, in the latest sign M&A is heating up in the gold sector.
Get a first look at tomorrow’s headlines
Sign up to the Street Talk First Look newsletter
Anthony Macdonald co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years’ experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at firstname.lastname@example.org