Raisebook

WA Gold Explorer led by Peter Cook. Expected Listing November 6th with 1 for 2 option
Nelson Resources
Nelson Resources
ASX:NES

The Offer

  • Nelson is conducting an IPO to raise $5.0m at $0.20 per share.
  • Free attaching 1-for-2 options exercisable at $0.20 per share for IPO subscribers.
  • Following the offer, Nelson plans to undertake targeted exploration programs across its projects, as well as continuing to consider new business development opportunities to further expand its portfolio.
  • The offer closes on 16 October, with anticipated listing on ASX on 6 November 2017
  • As this is a prospectus offering you do not need to be a sophisticated investor to participate. However, IPOs are high risk and investors should seek professional financial advice before making an investment.
Raise Amount
$5,000,000
Offer Price
$0.2000
Closes
Oct 20, 2017

The Company

Nelson Resources is an emerging WA gold explorer with five projects in the prolific Eastern Goldfields region of resource-rich Western Australia, situated in close proximity to existing gold operations: the Woolshed Well, Wilga, Socrates, Yarrie and Happy Jack projects.

The company’s assets range from grassroots through to advanced exploration plays upon which considerable funds have already been expended.

At the heart of Nelson’s strategy is a focus on targeting growth through exploration success and acquisition opportunities.

Nelson’s near-term aims are to expand upon the drill indicated mineralisation available at Wilga and Yarrie to generate gold resources for near-term cash flow via gate sale or toll processing, as well as to re-evaluate and delineate economically significant gold mineralisation at Socrates.

A systematic exploration program to understand the potential of Woolshed Well and processing of the mineralised tailings at Happy Jack will also be undertaken.

A Track Record of Expertise

Nelson is backed by an experienced board and management with an expansive track record of success.

The company is led by industry veteran Peter Cook, who has some 30 years of experience in exploration, discovery and development under his belt.

Cook is currently managing director of Westgold Resources (ASX:WGX) and was previously the founder of Metals X (ASX:MLX) and Pantoro (ASX:PNR).

Investment Highlights

  • Five gold exploration projects in globally significant Eastern Goldfields region, proximate to existing gold operations
  • Company has strong exposure to shareholder success and potential acquisitions
  • Ongoing strength in Australian dollar gold price
  • Gold price surging, with rising geopolitical tensions driving investors to turn to gold as safe haven
  • Strong shareholder base, including Metals X, to support Nelson's plans for growth
  • Targeted drilling program to commence on listing, focusing on prospective high-grade gold targets Wilga Well and Socrates
  • Following the offer, Nelson will have a low enterprise value $4.6 million and a small market cap of $9,118,569

Wilga Project

  • Situated 50km south of Laverton and 9km east of the AngloGold's Sunrise Dam Gold Mine in the Eastern Goldfields
  • Covers Archaean greenstone sequences of mafic and ultramafic volcanics with interbedded banded iron and cherty units
  • Historical production from Wilga Mine approximately 1,000t at >20 g/t
  • Previous geochemical surveys have outlined three areas of strong gold-in-soil anomalism. Drilling beneath the old workings is sparse and shallow, and the potential at depth remains largely untested
  • A well-defined gold anomaly and drilling by previous prospectors have outlined an immediate drill target which directors believe could yield excellent results and potential for an exploitable gold resource

Socrates Project

  • Comprises one prospecting licence, located 155km southeast of Kalgoorlie and 110km northeast of Norseman, along the gold belt that hosts nearby gold projects Lake Roe (Breaker Resources), Karonie (Alchemy Resources) and Carosue Dam (Saracen)
  • Tenement comprises one exploration licence application (E 28/2633) which has previously been prospected and has defined gold mineralisation
  • A significant gold-in-soil anomaly has been defined, presenting as a virgin gold discovery in what is considered to be part of southern extensions of the Kurnalpi Greenstone Terrane
  • Potential to host Archaean Greenstone-hosted gold mineralisation of Golden Mile (KCGM) and Kanowna Belle (Northern Star) style
  • Nelson will investigate toll processing opportunities at gold plants within trucking distance

Woolshed Well Project

  • Located 20km east of Leonora along the Leonora-Laverton Highway, in WA's Eastern Goldfields
  • Comprises four prospecting licences of roughly equal size and has a combined area of 795 ha
  • Grass-roots exploration prospect covering good stratigraphic and structural signs for mineralisation
  • Prospective greenstone stratigraphy transacted by a number of regional faults which are well regarded as fluid-pathways for gold mineralisation
  • Following the listing, Nelson will complete first pass reconnaissance and soil-geochemical sampling across the prospect area

Yarrie Project

  • Situated 150 kilometres northeast of Kalgoorlie in the Eastern Goldfields
  • Recent nearby major deposits include Saracen’s 4.34 Moz Carosue Dam Operations
  • Project covers multiple west-dipping and layered sequences of mafic and felsic volcanic rocks cut by low angle faults
  • The project area covers numerous zones of sparesely evaluated historic gold workings at the Gibberts, Great Banjo and Wallaby Prospects. All show good historic drilling results and require systematic exploration and drilling to assess their economic significance.
  • This tenure is significantly under-explored, with previous explorers specifically targeting shallow oxide mineralisation
  • The Wallaby Central mine, which sits within the Nelson tenure, has previously produced over 400kg of gold.

Happy Jack Project

  • 
Located 30km south of Menzies on the Goldfields Highway in the Eastern Goldfields
  • Approximately 500 metres north-east of the Sand Queen Gold Mine, a typical Archaean narrow, high-grade gold quartz lode deposit within a shear hosted system
  • Reed Resources previously announced a JORC (2004) resource of 186,000oz at 10.8 g/t Au
  • The old Happy Jack Mine and old tailings deposit sit within the project
  • An exploration drill program will be needed to assess the area's potential for further high-grade mineralisation as was previously mined
  • Also potential to re-process historic tailings dumps

Capital Structure

The pro-forma capital structure of the company on listing is summarised in the table below:

Description Fully Paid Ordinary Shares No. Shares %
Existing Shareholders 15,092,846 33.10%
Vendor Shares 5,500,000 12.06%
Offer Shares 25,000,000 54.83%
Ordinary Shares on issue on completion of Offer 45,592,846 100%
Free Attaching Options 12,500,000 69.44%
Broker Options 3,000,000 16.67%
Employee Incentive Options 2,500,000 13.89%
Options on issue on completion of Offer 18,000,000 100%
This deal closed on October 20, 2017