Raisebook

Last chance to invest in young Australian gold exploration company
​Huntsman Resources Limited
​Huntsman Resources Limited
ASX:HRE
  • Company seeking to raise $3.5 million under the share offer price of $0.20
Raise Amount
$3,500,000
Offer Price
$0.2000
Closes
May 16, 2017

HUNTSMAN RESOURCES LIMITED (HRE)

Huntsman is a new gold exploration company focused on the discovery and commercialisation of gold deposits in both the Democratic Republic of the Congo (DRC) and Western Australia.

Huntsman's chief objective is to discover and develop gold resources from its current portfolio, with particular focus on its flagship Mambasa Project.

Huntsman has meticulously selected two initial projects with historical workings and excellent results, and has assembled a team of experts with a track record of success and specific experience in these locations.

At the heart of Huntsman's exploration and growth strategy is a focus on working within well-endowed gold districts with limited previous exploration but which host historical gold mines.

The company aims to appraise and secure further exploration and development opportunities within such districts.

The Mambasa Project

  • Joint venture agreement with Kalubamba to earn a 55% interest (HRE to manage project)
  • Situated in the highly prospective Mambasa Greenstone belt, Democratic Republic of the Congo (DRC)
  • Project has similar setting to both the Geita gold mine and the Makapela gold project, which have defined resources within high grade quartz veins associated with banded iron formations
  • Along strike from Kilo Gold's 1.6 Moz Ngayu resource
  • Over 600m of strike exposed within banded iron formations with artisanal workings reportedly producing 1kg gold per week
  • Project is at an early stage of development but has a history of colonial and artisanal mining, demonstrating the potential to host structurally controlled Archaean lode gold mineralisation

The Crackerjack Project

  • Located in the historical Kimberley goldfields, Western Australia, south of Mt Dockrell
  • Features a single granted tenement with two lines of historical workings crossing the entire licence
  • 100% company owned
  • Limited modern exploration, but historic results indicate the presence of high grade gold mineralisation
  • Mount Dockrell area has successfully been worked for alluvial gold and hard rock gold for decades
  • Nearest gold project is the Palm Springs Project, with quoted non JORC resources of 1.76Mt @ 2.1g/t gold for 120,000 ounces
  • Close proximity to mining infrastructure

Last Chance To Participate In High Demand IPO

  • Highly experienced management with excellent track record in both corporate management and resource project acquisition, discovery and development
  • Strong exploration team, with experience locating and defining Achaean lode gold deposits
  • Projects are within close proximity to significant current and historical gold mines which are located in terrains proven to be prospective for hosting significant gold mineralisation
  • Tight capital structure

Capital Structure

On completion of the Share Offer, the capital structure of the Company is expected to be as follows assuming both minimum ($3,500,000) and maximum subscription ($4,500,000) scenarios.

Shares

Security type Minimum subscription Maximum subscription
Existing Shares 11,250,010 (33%) 11,250,010 (29%)
Vendor Shares to be issued on admission to the Official List 5,000,000 (14.8%) 5,000,000 (12.9 %)
Shares to be offered under the Share Offer 17,500,000 (52%) 22,500,000 (58.1%)
Total Shares on issue following completion of the Share Offer 33,750,010 (100%) 38,750,010 (100%)
Performance Rights to be issued to Managing Director 2,000,000 (100%) 2,000,000 (100%)

Options

Security type Minimum subscription Maximum subscription
Lead Manager 500,000 (7.7%) 500,000 (7.7%)
Directors and officers 6,500,000 (92.3%) 6,500,000 (92.3%)
Total Options 7,000,000 (100%) 7,000,000 (100%)

Notes:

The table above assumes that no other Shares are issued prior to the Closing Date.

The Performance Rights to be granted to the Managing Director are pursuant to the Executive Service Agreement (see Section 14.7 of prospectus).

Please see Section 6.7 of prospectus regarding the potential dilutive effect on Shareholders' interests on the issue of Shares if all all Performance Rights vest and all Options are exercised.

This deal closed on May 16, 2017