Dundas Minerals Launches $ 6 Million IPO to Advance Nickel-Copper-Gold Assets in Prolific Albany-Fraser Orogen
Continued global demand for nickel and copper along with a strong gold price environment are the driving forces behind an initial public offering launched this week by Dundas Minerals.
The Perth-based junior hopes to raise a maximum of $ 6 million through the issuance of shares priced at $ 0.20 each, providing funds to implement its exploration strategies on a 1,152-kilometer land position squares in the Albany-Fraser Orogen of southern Western Australia.
The area is one of the state’s most sought-after mining districts and has hosted several corporate discoveries, including the Nova-Bollinger nickel deposit (owned by IGO, ASX: IGO) and the Tropicana gold mine (AngloGold Ashanti, ASX: AGG).
Last year, Legend Mining (ASX: LEG) also staked its concession in the Orogen, unveiling the Mawson prospect on its Rockford nickel-copper-gold-zinc-silver project.
Dundas also committed to issue non-waivable prorated option rights to existing shareholders registered as members of the company three months after its listing proposal in November.
The options are expected to be offered under a separate prospectus on a one-for-two basis at an exercise price of $ 0.30 each and with an expiration date of two years after issuance.
Ventnor Securities has been named lead manager of the public offering.
Dundas Minerals will use the ticker code “DUN”.
Since its incorporation in April of last year, Dundas has focused on raising seed capital to fund exploration for the Dundas and Triton nickel-gold-copper projects along the Albany-Fraser Orogen, and the completion of the first geophysical surveys.
The company has built a compelling pipeline of exploration prospects at various stages of maturity through the Orogen.
It holds four granted exploration permits and eight permit applications, including one held by a third party that it has the exclusive right to acquire upon granting.
The concessions were selected based on their potential to host economic mineralization.
All but one form the early Dundas project – which straddles the Biranup complex for approximately 1,106 km² and 11 adjoining buildings – while the remaining permit which covers 46 km² is called Triton.
The Dundas Project is believed to have a gold-focused exploration history with a limited number of drilling completed in parts of the region prior to 1995.
From 1995 to 2011, a series of tightly clustered and spatially distributed exploration work by various companies included limestone and soil sampling, as well as shallow coring or rotary jet drilling, with almost all holes having been drilled to a depth of less than 50 m.
These companies have given exclusive priority to the search for gold, leaving large swathes of the project area unexplored.
Dundas has since identified several gold and nickel anomalies in the region that present it with an immediate pipeline of high priority targets to work on post-listing.
These will include legacy leads Jumbuck, Norseman, Kokoda, Mulga, Bullseye, and Terra.
The company plans to use up to $ 3.9 million of the IPO’s proceeds for exploration, which includes a recently completed airborne electromagnetic survey and a ground gravity survey that began this month.
Information from these surveys will be combined with existing magnetic and geochemical data and should identify further opportunities for future exploration.
Unlike Dundas, the Advanced Triton Project has been the site of considerable past exploration which has located a widespread gold anomaly in soil samples and a significant gold anomaly in drill holes.
The company said additional deeper drilling as well as geophysics and geochemistry would be needed to better understand the geological setting and mineralization of the tenement.
He plans to invest $ 62,000 in IPO funds to test the gold anomaly and re-evaluate various geophysical data sets to select drill locations.
Triton’s prospectivity will be ranked against Dundas’ objectives to establish the allocation of working capital and current resources.