Raisebook

$5.5M Enterprise Value on ASX listing | Australian Gold Exploration Assets
Australasian Gold Ltd
Australasian Gold Ltd
ASX:A8G
  • A8G has a portfolio of gold exploration projects in Queensland and WA.
  • The price of gold has enjoyed significant gains over the last 5 years.
  • A8G’s board believes that good quality gold exploration assets with confirmed mineralisation in Tier 1 mining jurisdictions such as Australia, can still represent compelling value in the context of current gold prices.
  • Immediately following the proposed ASX listing, A8G will launch exploration programs on its flagship May Queen gold project, located in the Brovinia gold field in Queensland and the Mt Clermont project in the Drummond Basin, central Queensland.
  • At May Queen, multiple historical high grade shallow gold drill intercepts have been reported which could potentially represent a skarn and/or epithermal gold system.
  • Market capitalisation post listing, fully diluted of $10M (assuming the minimum $4.5M is raised).
Raise Amount
$4,500,000
Offer Price
$0.2000
Closes
Mar 29, 2021

Australaisan Gold Ltd (proposed ASX code A8G) is a mineral exploration company focused on delivering shareholder value through the identification, development and acquisition of exploration properties, focusing on mining tenements prospective for gold and other minerals, initially in Queensland and Western Australia.

The Company intends to take its portfolio of Australian gold exploration assets to the next stage of their development through an Initial Public Offering on ASX.

The price of gold has enjoyed significant gains over the last 5 years coinciding with highly accommodative global monetary policies, such as successive programs of quantitative easing in the US, Europe and Asia.

While the price of gold and the valuations of many gold mining companies has increased significantly in recent years, the Company’s board believes that good quality gold exploration assets with confirmed mineralisation in Tier 1 mining jurisdictions such as Australia, can still represent compelling value in the context of current gold prices.

Immediately following the proposed ASX listing, the Group will launch exploration programs on its flagship May Queen gold project, located in the Brovinia gold field in Queensland and the Mt Clermont project in the Drummond Basin, central Queensland.

The Company’s exploration efforts will extend to the Fairview gold project (30 km from Northern

Star Resources Ltd's Paulsens Gold mine) once this tenement application is approved.

The initial exploration programs will be designed to better understand the structural and depositional geology of the licence areas in order to then develop further exploration programs that will be focused on the expansion of existing known mineralisation and the potential discovery of new deposits.

The primary purpose of the Offer is to provide funds to undertake systematic exploration of these programs at the Projects with the ultimate goal to define a mineral resource that can be taken through to production, and to also raise the Company’s profile through listing on the ASX.

The Offer

Australasian Gold Ltd (ACN 625 744) is offering 22,500,000 Shares at an issue price of $0.20 to raise $4.5 million.

Oversubscriptions of up to a further 7,500,000 Shares to raise up to a further $1.5 million may be accepted.

The offer of the securities are made in, or accompanied by, a copy of the Disclosure Document which can be obtained by clicking on the "ACCESS DISCLOSURE DOCUMENT" button on this page.

The Lead Manager to the offer is Euroz Hartleys.

Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the Disclosure Document.

Before making an investment decision, potential investors should read the Disclosure Documents entirely, and seek professional financial advice.

Investors should be aware that there are risks associated with an investment in this Company.

Although the Company’s projects have been subject to historical exploration by third parties (as set out in the Independent Technical Report), no mineral resources have been declared for any of the Company’s projects.

Exploration is speculative; there is a high risk of cost overruns, time delays and exploration not being successful.

A complete set of risks associated with an investment in the Company is included in Section 6 of the Disclosure Document. Investors should consider those risks carefully in deciding whether to invest in the Company.

Key Statistics of the Offer

Number of Shares Min. Subscription (A$4.5M) Max. Subscription (A$6M)
Shares Currently on issue 18,000,001 18,000,001
Shares issued under the Offer 22,500,000 30,000,000
Total Shares on issue post listing (undiluted) 40,500,001 48,000,001
Market capitalisation post listing (undiluted) $8,100,000 $9,600,000
Director Options 3,000,000 3,000,000
Other Options 3,000,000 3,000,000
Performance Rights 3,500,000 3,500,000
Shares on issue post listing (fully diluted) 50,000,001 57,500,001
Market capitalisation post listing (fully diluted) $10,000,000 $11,500,000

Indicative Timetable

Date
Exposure Period ends 12/03/2021
Opening Date of the Offer 13/03/2021
Closing Date of the Offer 23/04/2021
Quotation of Shares on the ASX 28/04/2021

Note: Subject to all applicable laws and listing rules, the Company reserves the right to close the Offer earlier than indicated above without prior notice.

The Projects

The Company is focused on early-stage mineral exploration, with a particular focus on gold and precious metals.

The Company currently has 3 projects; 2 of which are granted (May Queen and Mt Clermont) and 1 application (Fairview).

May Queen

The May Queen project is located in the Brovinia goldfield in Queensland.

The project has been subject to historical exploration including an 8 hole RC drill program undertaken by IronRidge Resources in 2015.

Multiple historical high grade shallow gold drill intercepts have been reported which could potentially represent a skarn and/or epithermal gold system.

The Company has purchased the project from IronRidge Resources Limited.

Mt Clermont

The Mt Clermont project is approximately 60km by road north-west of the town of Emerald, Central Queensland.

Over 6,700m of historical drilling has been completed showing potential for a high grade polymetallic epithermal system.

Future exploration will focus on exploring for further massive sulphide lenses along the major Retro fault system.

The previous owners of the project, Invictus Gold and Impact Minerals, carried out exploration at Mt Clermont between 2016 and 2019.

This work included mapping and collecting grab samples, RC drilling and an IP geophysical survey along the Retro FaultSystem, a gold-bearing quartz reef/vein system, to confirm the potential for epithermal mineralisation over its 10 km of strike length.

A mineralized vein system was defined by this drilling over 350 m of strike and 75 m depth.

Fairview

The Fairvew project consists of a tenement application by the Company over 38 km2 of prospective ground approximately 30 km’s to the south west of Northern Star’s Paulsens Gold Mine.

The exploration target is structurally similar to the Mt Clement deposit (less than 5km to the south east) and the Paulsens Gold Mine, operated by Northern Start Ltd (ASX:NST).

This deal closed on March 29, 2021