Northam Resources Ltd aims to raise $6 million in its Initial Public Offer (IPO) to advance the exploration of its project portfolio in Western Australia’s Wheatbelt region.
The company has lodged a prospectus for the IPO with the Australian Securities and Investment Commission (ASIC) and aims to list on the ASX.
Notably, Northam has entered a farm-in and joint venture agreement with neighbour Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF), which will also commit $1 million in the IPO.
The company is one of the largest tenement holders in the Northam region and has attracted significant investor interest in the nickel-copper-PGE potential of mafic-ultramafic complexes in the southwestern region of Western Australia.
“Enviable position”
Northam CEO Craig Moulton said: “Following the Julimar discovery, and the recent advances in geological understanding due to the Geological Survey of WA’s (GSWA) Accelerated Geoscience Program, the company is in an enviable position both strategically, ie being situated between Chalice’s and Anglo American’s tenement holdings, but also due to the geological prospectivity of these very exciting prospects.
“We have extensive exploration planned across all four project areas and we are looking forward to finalising our IPO and ASX listing to move into the next phase for our company and toward exploration success.”
Prospectus highlights
This prospectus has been issued by Northam for an IPO at an issue price of 25 cents per share to raise a minimum of $6 million.
It also may accept oversubscriptions to raise up to $9 million in total, before costs.
Subject to completion of the offer and admission to the official list, NRL intends to undertake a pro-rata non-renounceable issue of options to shareholders that are registered on a record date on or around three months from admission to the official list
The loyalty options would be offered for a nil issue price, on a 1-for-2 basis, with an exercise price of $0.28 per option and expiring about three years from the date of issue.
Northam’s portfolio
Northam’s projects are within the Wheatbelt region of WA and include a tenement package comprised of 24 granted exploration licences totalling 1590.23 square kilometres.
The project portfolio is grouped into four major project areas - Kauring, Mount Joy, Ragged Rock and Yerecoin North.
The northern part of Northam’s tenement holding lies in relative proximity to Caravel Minerals’ copper projects, Devex Resources Ltd’s Sovereign and Caspin Resources Ltd (ASX:CPN)’s Yarawindah Brook projects.
The southern portion of its tenement holding lies immediately east of Mandrake’ Resources’ Jimperding projects, including the Newleyine nickel-copper-PGE prospect