Raisebook

WA Exploration Projects with a Major Focus on Gold and Lithium
Golden State Mining Ltd
Golden State Mining Ltd
ASX:GSM
  • Raising a minimum of $4.5M, giving Market Cap of $6.8M, Enterprise Value of $2.3M
  • Initial focus on the exploration of recognised priority gold targets identified within the Cue tenement area
  • Prepared drill programs designed to target new discoveries of gold mineralisation at Cue
  • Further activities will focus on the evaluation of early cash flow opportunities at Cue
  • There is the potential for tin, tantalum and lithium mineralisation to be located within Yule South tenements
  • Yule South includes ground previously selected for tantalum potential by highly successful prospecting geologist, the late Graeme Hutton (co-founder of Sandfire Resources, Metana Minerals and a pioneer of the Hamersley Iron Province)
  • Raisebook is accepting maximum bids of $5,000 per entity
Raise Amount
$4,500,000
Offer Price
$0.2000
Closes
Sep 7, 2018

Golden State Mining (GSM or the Company) is a Perth-based mineral exploration company established with the purpose of exploring for gold and lithium mineralisation on a prospective package of mineral tenements in Western Australia.

The Company’s current projects are located at Cue, a premier gold mining district in the Murchison region; Yule in the Pilbara; and Four Mile Well near Laverton in the Eastern Goldfields.

The Company secured these projects due to their prospective geological settings within proven mineralised areas, and their lack of previous systematic and dedicated modern exploration despite their significant potential.

The purpose of the Offer is to provide funds for the Company to undertake targeted exploration over the tenement portfolio along with general working capital.

The Company’s initial focus will be on the exploration of recognised priority gold targets identified within the Cue tenement area with prepared drill programs designed to target new discoveries of gold mineralisation.

In conjunction, the Company will continue to evaluate its tenement portfolio at Yule and Four Mile Well to identify or upgrade priority targets for exploration.

Further activities will focus on the evaluation of early cash flow opportunities at Cue. This potential was a significant factor in the Company’s decision to pursue the Cue project. The Company intends to undertake definition and extension drilling with the view to establishing a robust mineral resource base of sufficient scale to allow for the development of a mining operation.

GSM has assembled a well-qualified and balanced board and senior management team with proven corporate, technical, financial and commercial expertise ideally suited to maximising the value of the Company’s projects and to capitalise on exploration success.

The Company has also strived to minimise the number of Shares on issue upon listing to enable shareholders to retain maximum exposure should the Company be successful in its endeavours.

THE OFFER

Golden State Mining Limited (ACN 621 105 995) is offering 22,500,000 Shares at an issue price of $0.20 per Share to raise approximately $4,500,000 before costs under the Offer, with the ability to accept oversubscriptions for up to 5,000,000 Shares to raise up to an additional $1,000,000.

Hartleys will be the Lead Manager to the Offer, which is being co-managed by DJ Carmichael.

Raisebook is accepting bids of between $2,000 (minimum) and $5,000 (maximum) per entity.

Raisebook anticipates high demand for this offer and expects to close the offer by 12pm Friday 7th September.

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 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.

The Company is subject to risks associated with a Western Australian mineral exploration company, such as the inherent uncertainty of minerals exploration and the fact that exploration may not lead to discovery or delineation of economically exploitable minerals, the volatility of gold and other minerals, the volatility of exchange rates, exploration costs and risks with respect to the holding of exploration tenure and the rights of native title holders.

KEY STATISTICS OF THE OFFER

Item Min. Subscription $4.5M Max Oversubscriptions $5.5M
Number of shares currently on issue 9,001,200 9,001,200
Issue price per share under the offer $0.20 $0.20
Total number of shares offered under the Offer 22,500,000 27,500,000
Number of shares to be issued to Cue Option Vendor prior to listing on ASX 2,750,000 2,750,000
Total number of shares on issue at ASX listing 34,251,200 39,251,200
Market Cap at listing $6,850,240 $7,850,240
Cash proceeds to be received under the Offer (before costs) $4,500,000 $5,500,000
Ownership by investors under Offer at ASX Listing ~65.7% ~70.1%
Lead Manager Options offered under Lead Manager Offer 1,712,560 1,962,560
Total Options on issue at ASX Listing 8,212,560 8,462,560
Total number of shares on issue at ASX listing fully diluted 42,463,760 47,713,760

Note: Refer to Section 1.2 of the Disclosure Document for additional details on the Capital Structure, including exercise details of the Options.

INDICATIVE TIMETABLE

Event Date
Expected Closing Date on Raisebook 12PM AEST Friday September 7th
Closing Date of the Offer 28 September 2018
Completion of the Offers and Cue Option 5 October 2018
Admission to Official List and quotation of shares on the ASX 12 October 2018

Note: The above dates are indicative only and may change without notice. The Company reserves the right to extend the closing dates of the Offers, accept late applications or open or close the Offers early without notice.

Who is GSM?

The Company was incorporated in Western Australia on 15 August 2017 and has two wholly owned subsidiaries:

  • Cue Consolidated Mining Pty Ltd (ACN 621 059 630) (CCM), incorporated on 14 August 2017; and
  • Crown Mining Pty Ltd (ACN 622 431 887) (Crown Mining) incorporated on 24 October 2017.

The Company, via CCM and Crown Mining, has acquired rights to three Western Australian gold projects:

  • an option to acquire 100% of a gold project near Cue, Western Australia comprising a total of 31 granted tenements (mining leases, prospecting licenses, and miscellaneous licenses) and 2 applications (1 mining lease and 1 prospecting licence), together with small-scale gravity plant, infrastructure and equipment on site (Cue Option Assets);
  • three exploration licences considered prospective for gold and lithium near Yule, Western Australia (Yule Project); and
  • one exploration licence near Laverton considered prospective for gold (Four Mile Well Project).

The Company, via CCM, has also applied for 27 prospecting licences in the vicinity of the Cue Option Assets (the Cue Option Assets and the prospecting license applications made by CCM together comprising the Cue Project) to the extent (if any) that they become granted prospecting licenses.

SUMMARY OF PROJECTS

The Company’s current projects are located at Cue, a premier gold mining district in the Murchison region; Yule in the Pilbara; and Four Mile Well near Laverton in the Eastern Goldfields.

Cue Project

The cornerstone Cue Project is located adjacent to the historical town of Cue in the Murchison district, approximately 659km by road northeast of Perth.

The Cue Project is located in a region that has produced over seven million ounces of gold over the past 126 years and covers an area of approximately 46km2.

Several historical mine workings with limited previous drilling are considered high priority exploration targets that require systematic drilling and evaluation work along strike and down-dip and plunge of known mineralisation.

Some of the larger workings include the Cue No.1, Salisbury, Light of Asia and Queen of the May mines which have been explored to some extent, however previous explorers appeared to be focussed on defining shallow high-grade ore shoots immediately below historic gold workings.

Another significant exploration target is the relatively unique geology at “The Patch” when compared to the remainder of gold deposits in the Cue Project.

“The Patch” extends approximately 1km along strike (N – S) and 0.8km east to west and is an area of highly kaolinised granitoid which overlies the projected extension of both the Great Fingall Shear Zone (GFSZ) and the Great Fingall Dolerite.

This target contains a series of stacked, shallow dipping quartz reefs and moderate to steeply dipping quartz ladder veins. These veins vary in width from a few centimetres up to 3 to 4 meters in width.

The structural geometry of the vein system in this area is not currently understood, however the dominance of the interpreted shallow dipping vein sets suggests these veins formed in a compressive structural environment.

Yule Project

The Yule Project is located between 35km and 65km southwest of Port Hedland in the Northern Pilbara region of Western Australia.

Yule South includes ground previously selected for tantalum potential by highly successful prospecting geologist, the late Graeme Hutton (co-founder of Sandfire Resources, Metana Minerals and a pioneer of the Hamersley Iron Province). Yule South also includes conceptual lithium-tantalum and gold targets identified from airborne geophysics at Yule South.

There is the potential for tin, tantalum and lithium mineralisation to be located within Yule South tenements covering the Portree Granite Complex as these metals occur in similar age granitoid rocks to the east and southeast of the project areas.

Structural sites adjacent to this complex also have the potential to host gold mineralisation. Palaeochannels associated with the Yule River also have the potential to host deposits of heavy minerals and gold.

Four Mile Project

The Four Mile Well Project is located 9km to the north of the Laverton townsite in the Eastern Goldfields.

The region is highly mineralised with a number of major gold and nickel deposits within close proximity to the Four Mile Well Project area.

Two significant nickel sulphide deposits (Windarra and Mt Windarra) are located to the west of the project area and the 1.3Moz Lancefield gold deposit is located less than 1km to the south.

Previous work has identified several untested geochemical gold anomalies which require follow up geochemical sampling and represent a potential early stage drilling opportunity.

This deal closed on September 07, 2018