Raisebook

$3.3M EV on Listing | Gold Explorer 10km from Saracen Minerals (ASX: SAR)
Expose Resources Limited
Expose Resources Limited
ASX:EXX
  • Flagship Red Gate Gold Project is 10km north of Saracen Minerals (ASX: SAR) Porphyry Gold Mine in the prolific Eastern Goldfields of WA.
  • 3,000m RC drill program planned to commence on ASX listing, designed to follow up and extend previous multiple intersections of broad, near-surface high-grade gold mineralization.
  • The Red Gate Project is surrounded by major operating gold mines, each with multi-million oz endowment and all within trucking distance - Carosue Dam, Granny Smith, and Sunrise Dam.
  • The Company’s expects quotation on ASX to be completed April 2019.
  • 36.68 million total shares on issue at ASX listing (min. subscription)
  • EV on listing of $3.3M (min. subscription)
Raise Amount
$4,000,000
Offer Price
$0.2000
Closes
Mar 22, 2019

Expose Resources (proposed ASX: EXX) is focussed on exploring and developing high quality gold projects in Australia.

The flagship project is the Red Gate Gold Project located 10km north of Saracen Minerals’ (ASX: SAR) Porphyry Gold Mine in the prolific Eastern Goldfields of WA.

The Company has a fully approved 3,000m RC drill program planned to commence immediately on listing, designed to follow up and extend previous multiple intersections of broad, near-surface high-grade gold mineralization.

The Project also hosts multiple other high priority targets which will be systematically drilled.

Recently EXX also effectively expanded Red Gate via an earn-in JV with GFI to earn up to 85% of the tenement adjacent to the East, importantly capturing an additional 3km strike length of the Reidys prospect.

The Company’s second project is the Roger River Gold Project in north-west Tasmania which represents an early stage epithermal-style project with large-scale discovery potential. A maiden drilling program at this target is also planned on listing.

The Company has assembled an experienced management, exploration and development team who are well qualified to exploit the potential of the Company’s mineral assets.

The Offer

Expose Resources Ltd (ACN 624 470 104) is offering up to 22,500,000 shares at an issue price of $0.20 each to raise up to $4,500,000, with a minimum subscription requirement to raise at least $4,000,000.

The Lead Manager of the Offer is KS Capital, and funds raised will be predominantly to fund the immediate and continued exploration and development of Red Gate.

The offer of the securities are made in, or accompanied by, a copy of the disclosure documents which can be obtained by clicking on the "ACCESS DISCLOSURE DOCUMENTS" button on this page. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the Disclosure Documents. Before making an investment decision, potential investors should read the Disclosure Documents entirely, and seek professional financial advice.

Investors should note that the Company is an early stage mineral exploration company, and that any investment made in the Company should be considered highly speculative. An investment in the Company is subject to risks, including Company specific risks and general risks. Detailed information about these risks is set out in Section 3 of the Disclosure Document, and investors are encouraged to read carefully.

Key Offer Details

Minimum Subscription Maximum Subscription
Amount to be raised under the Offers $4,000,000 $4,500,000
Offer Price per Share $0.20 $0.20
Total number of Shares currently on issue 10,455,000 10,455,000
Shares issued pursuant to the Placement 100,000 100,000
Shares to be issued under Offers 22,000,000 22,500,000
Shares to be issued to the Lead Manager 1,125,000 1,125,000
Shares to be issued to the Project Vendors 5,000,000 5,000,000
Total number of Shares on issue at completion of the Offers 36,680,000 39,180,000
Percentage of Shares held by existing Shareholders following completion of the Offers 28.7% 26.9%
Indicative market capitalization upon completion of the Offers $7,336,000 $7,836,000
Options on issue as at the date of this Prospectus Nil Nil
Total number of Options on completion of the Offer 1,125,000 1,125,000

Changes from the Original Prospectus

EXX have lodged several prospectuses with ASIC - all of which form part of the Disclosure Documents and must be read together, and are available for download on this page by clicking the button "ACCESS DISCLOSURE DOCUMENT".

A selection of key differences of the current Offer compared to the Original Prospectus are as follows:

  1. The number of Director/Founders shares have been reduced. These now total 6 million shares compared to the previous 11 million shares (all are still escrowed). As a result, the pre-IPO valuation has reduced to $3.3M.
  2. Trimming of the Board. Co-Founder Peter Nicholson has agreed to resign his board seat and move forward as a consulting geologist only. The Board now comprises 4 members, with the consequent reduction in overall Board Remuneration.
  3. A new Earn-in JV secured, whereby EXX can acquire up to 85% interest in E31/1122, the tenement immediately adjacent to Red Gate on its eastern border and which enables EXX to secure the additional strike length of the Reidys prospect – now control +3km of surface Au anomalism, along with a number of other targets prospective for gold.
  4. A slight adjustment to the structure of the Red Gate acquisition, with vendor Blackstone Resources agreeing to accept 50% of the cash component ($250k) on 6 month deferred terms.
  5. The dates – the Company is now closing the offer by 22 March, with an intention to list on the ASX in April.

It should again be reiterated that any investor should read all of the Disclosure Documents before choosing to invest in the Company.

Key Dates

Closing Date of the Offer 22 March 2019
Offer Shares expected to be issued 29 March 2019
Dispatch of Holding Statements 5 April 2019
Commencement of trading in the Company's securities on ASX 10 April 2019

Red Gate Gold Project

The Red Gate Project consists of the Red Gate Tenement (E31/1096) and the Edjudina Range Tenement (E31/1122).

The Red Gate Tenement is to be 100% acquired from Blackstone Minerals (ASX: BSX) for the issue of 2.5m shares and $500,000 cash.

The Red Gate Tenement covers 146km2, is located 140km NE of Kalgoorlie and is:

  • 10km Nth of Saracen Minerals’ (ASX: SAR) Porphyry gold mine – gold endowment of 900,000oz Au;
  • Surrounded by major operating gold mines, each with multi-million oz endowment and all within trucking distance - Carosue Dam, Granny Smith, and Sunrise Dam.
  • Contains 5 established targets, of which 4 have only been partially drill tested.

The Red Gate Tenement already hosts near surface porphyries with high grade gold mineralisation including:

  • 14m @ 3.7 g/t gold from 1m at Porphyry North;
  • 12 m @ 9.2 g/t gold from 8m at Porphyry West; and
  • 10m @ 8.5 g/t gold from 9m at Porphyry East.

The Company intends to follow-up on drill results at the Porphyry North, Porphyry West, Porphyry East, Porphyry South prospects, and initiate work on exploration targets in areas under cover that it believes have not been effectively tested.

With over 30 km of variously mineralized shear zone extending through the tenement, the Directors believe there is substantial potential to discover further mineralization and mineable ore bodies.

Untested regional-scale structures, interpreted intrusives, and initial target areas related to structural intersections and shear zone “wrapping” around brittle intrusive bodies:

New Earn-In JV - E31/1122

On 8 February 2019, the Company secured an earn in joint venture with Global Fortune Investment Ltd (ASX: GFI) on their tenement E31/1122 (the Edjudina Range Tenement), which is immediately adjacent to the East of the Red Gate Tenement.

For option consideration of $4,000, GFI granted the Company the ability to acquire up to an 85% equity interest in E31/1122 by completing exploration expenditure of:

  • $200,000 pa over 2 years (first 51%); then
  • $200,000 pa over next 2 years (additional 34%); plus
  • Payment of $180,000 cash to GFI over 5 years

Some important regional structures (for example, the Claypan Fault and the Hobble Gap - Raeside structure) present in E31/1096 extend into E31/1122, and therefore, the Tenements are complimentary.

The Reidys Prospect, located on the Claypan Fault, shows gold anomalies along the entire tested extent, extending across the joint tenement boundary. In addition, this ground adds:

  • 4 Au mineralised zones & multiple individual targets, some with limited historic RC drilling:
    • 5m @ 1.48g/t Au from 70m
    • 3m @ 1.41g/t Au from 45m
    • 8m @ 2.39g/t Au from 68m
    • 1m @ 7.61g/t Au from 102m & 1m @ 10.95g/t Au from 126m
  • +18km of untested shear zone and +12km of partly tested shear zone identified from EXX’s review of historic exploration within E31/1122.

Roger River Gold Project

The Roger River Gold Project is to be 100% acquired from a private vendor for the issue of 2.5m shares and comprises a 26km2 tenement located in NW Tasmania.

The Roger River Gold Project is an early-stage exploration project that presents:

  • as an epithermal-style gold opportunity, analogous to the large scale gold deposits of the Carlin trend in Nevada
  • +7 km-long zone of anomalous arsenic in soils coincident with Roger River Fault
  • predominantly carbonate-rich host rocks - ideal for emplacement of hot spring related epithermal gold mineralisation
  • targets are high grade disseminated gold and structurally controlled gold
  • locally intense alteration plus three diatreme breccia bodies - typically focal points for ore body formation
  • soil sampling indicates many of the anomalies remain open along strike
  • significant untested portion of structure may yield more anomalous zones.