Raisebook

Exploration in Fraser Range: Host to IGO’s Major Nova-Bollinger Nickel-Copper Deposit
Constellation
Constellation
ASX:CR1

Constellation Resources Ltd holds an interest in the Orpheus Project, located in the Albany-Fraser Orogen, commonly referred to as the Fraser Range province, which is considered prospective for nickel, copper and gold.

The Fraser Range province is host to Independence Group NL's (ASX: IGO) major Nova-Bollinger nickel and copper deposit (11.4 Mt at 2.4% Ni, 1.0% Cu and 0.08% Co3).

The Orpheus Project comprises three mineral exploration licences and two mineral exploration licence applications covering approximately 552km² in a prospective portion of the Albany-Fraser Orogen (AFO).

Raise Amount
$7,000,000
Offer Price
$0.2000
Closes
Jun 20, 2018

Recent field assessment at the Orpheus Project has confirmed three priority targets (two nickel-copper sulphide targets and one gold target) on tenements E63/1281 and E63/1282. Gravity surveys have resulted in the identification of two priority nickel-copper sulphide targets on E28/2403.

The aim for the first two years of exploration is to:

  • Refine and subsequently drill test existing geophysical (magnetic, gravity and EM) targets for Nova-style nickel-copper-PGE sulphide mineralisation
  • Refine and subsequently drill test the existing gold-in-soil anomaly for Proterozoic gold mineralisation
  • Generate further targets for drill testing through focused and targeted regional exploration.

The Offer

Constellation Resources (ACN 153 144 211) is conducting an IPO of 35,000,000 Shares at an issue price of A$0.20 each, together with one free attaching Option for every three Shares issued to raise A$7M (before costs).

Raisebook has secured an allocation in this IPO, and is accepting bids between $4,000 and $8,000 per entity on behalf.

Offer closes at 5pm AEST, 5 July 2018. However, the Company reserves the right to close earlier.

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.

Anyone who wants to acquire the securities will need to complete an electronic application form which will be sent via email after downloading the Disclosure Document.

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

The business of mineral exploration, development and production is subject to risk by its nature. The Orpheus Project Tenements are at an early stage of exploration and potential investors should understand that mineral exploration, development and mining are high-risk enterprises, only occasionally providing high rewards.

Capital Structure

On the basis that the Company completes the Offer on the terms in this Prospectus, the Company’s capital structure will be as follows:

Shares Options (1, 3) Incentive Options (2, 3)
On issue as at the date of this Prospectus 100 3,000,000 1,000,000
Securities issued under the Offer 35,000,000 11,666,666 -
Total following completion of the Offer 35,000,100 14,666,666 1,000,000

Notes:

  1. Exercisable at A$0.20 on or before 31 July 2021 and otherwise on the terms set out in Section 10.2 of the Disclosure Document.
  2. Refer to Section 10.3 of the Disclosure Document for terms and conditions of Incentive Options.
  3. In accordance with their terms, each Option and Incentive Option entitles the holder to one Share upon exercise. Accordingly, if all Options and Incentive Options are exercised, it will result in the issue of a further 15,666,666 Shares. Assuming all Options and Incentive Options are exercised and no further issues of Shares occurs, the total number of Shares on issue will be 50,666,766 Shares.

More Details on the Orpheus Project

The Orpheus Project comprises five tenements covering approximately 552km² in a prospective portion of the AFO, commonly known as the Fraser Range province, host to Independence Group NL’s (ASX: IGO) major Nova-Bollinger nickel and copper deposit.

The AFO Fraser Zone mafic-ultramafic intrusive suites have long been viewed as prospective for potential nickel-copper-cobalt (Ni-Cu-Co) magmatic sulphide systems, with exploration for nickel in the region dating back to the 1960s, culminating in the discovery in 2012 of the Nova-Bollinger nickel-copper-cobalt deposit. The Nova-Bollinger system is currently being mined by IGO.

The most important gold deposit in the region is the Tropicana gold deposit operated by Anglogold Ashanti Australia Pty Ltd (70%) in joint venture with IGO (30%).

The mineral deposit is hosted in tectonically reworked Archaean rocks that form the eastern margin of the Yilgarn Craton, Western Australia, on the margin of the AFO.

Recent field assessment has confirmed three priority targets (two nickel-copper sulphide targets and one gold target) on tenements E63/1281 and E63/1282.

Gravity surveys completed in 2017 have resulted in the identification of two priority nickel-copper sulphide targets on E28/2403.

Following completion of the offer, the company plans to undertake systematic exploration activities on the Orpheus Project to determine potential.

Indicative Timetable

Offer Closing Date: 5 July 2018, 5PM AEST

Despatch of Holding Statements: 23 July 2018

Expected Date for Quotation on ASX: 24 July 2018

Directors' Profiles

The Board has extensive experience in mineral exploration, project development, mining and financing in the resources industry.

Ian Middlemas - Non-Executive Chairman

Mr Middlemas has extensive corporate and management experience and is currently a director of a number of publicly listed companies in the resources sector - Apollo Minerals Limited, Berkeley Energia Limited, Cradle Resources Limited, Paringa Resources Limited, Prairie Mining Limited, Salt Lake Potash Limited, Equatorial Resources Limited, Piedmont Lithium Limited, Sovereign Metals Limited, and Odyssey Energy Limited.

Middlemas previously held directorships in Syntonic Limited (April 2010 - June 2017) and Papillon Resources Limited (May 2011 - October 2014).

Peter Woodman - Managing Director

Mr Woodman most recently held the position of Chief Geologist at Regis Resources Limited where he oversaw exploration and resource development activities for its WA and NSW projects.

Prior to his role with Regis Resources Limited, he held positions with Papillon Resources Limited, Sovereign Metals Limited, WCP Resources Limited (now named Piedmont Lithium Limited), Samantha Gold NL, Ranger Minerals NL, Hellman & Schofield Pty Ltd, Centamin Egypt Ltd and Kingsgate Consolidated Ltd.

Robert Behets - Non Executive Director

Mr Behets has had extensive corporate and management experience and has been Director of a number of ASX-listed companies in the resources sector including Mantra Resources Limited, Papillon Resources Limited, and Berkeley Energia Limited.

Mr Behets was instrumental in the founding, growth and development of Mantra, an African-focused uranium company, through to its acquisition by JSC Atomredmetzoloto for approximately A$1 billion in 2011.

Prior to Mantra, he held various senior management positions during a long career with WMC Resources Limited.

Mark Pearce - Non Executive Director

Mr Pearce holds directorships in Salt Lake Potash Limited, Apollo Minerals Limited, Prairie Mining Limited, Equatorial Resources Limited, Piedmont Lithium Limited, Sovereign Metals Limited, and Odyssey Energy Limited. Mr Pearce was formerly a director of Syntonic Limited (April 2010 – October 2016).

This deal closed on June 20, 2018