Raisebook

5,100m RC drilling programme to start late June 2021
Polymetals Resources Ltd
Polymetals Resources Ltd
Unlisted
  • Two exploration licenses within the Siguiri Basin of Guinea, West Africa
  • The Siguiri Basin hosts several large active gold mining operations, and is noted for its widespread gold anomalism
  • The region produces over 500,000 oz. of gold/year, however is considered relatively immature from an exploration perspective
  • The largest gold operation is the AngloGold Ashanti Siguiri Gold Mine which has produced more than 6 million oz. over its 20-year life.
  • The AngloGold Ashanti Siguiri Gold Mine is located 37km west of the company’s licenses
  • The two licenses host many historic and current and small scale mining operations
  • Previous soil samples reported numerous +40 parts per billion (ppb) gold anomalies, with peak soil value of 93.98 grams per tonne.
  • Significant potential for the discovery and delineation of large gold inventory
  • Board and management are optimistic that the licenses may support the establishment of a large, long term gold mine - such an outcome would generate substantial enterprise and economic growth for Guinea, and sizable returns for shareholders.
  • $10.85M Enterprise Value assuming minimum subscription amount achieved
Raise Amount
$5,000,000
Offer Price
$0.2000
Closes
Jun 11, 2021

Polymetals Resources Ltd recently acquired 100% interest in Golden Guinea Resources SARL (Golden Guinea) which owns two exploration licences within the Siguiri Basin in Guinea, West Africa.

The Siguiri Basin occupies the north-eastern corner of Guinea and hosts several large active gold mining operations and is notable for its widespread gold anomalism.

The Basin is broadly covered by exploration or exploitation tenure and there is little vacant land available for new exploration participants in the region.

The region is considered prospective and relatively immature from an exploration perspective and produces over 500,000 oz of gold/year.

The largest operation is the AngloGold Ashanti Siguiri Gold Mine, located 37km west of the Golden Guinea licences, which has now produced more than six (6) million ounces over its 20-year life.

The two Golden Guinea exploration Licences, known as Alahiné (64.21km2) and Mansala (48.23km2), host many historic and current small scale gold mining operations conducted by local individuals known as artisans.

Previous field activities at Alahiné comprised of two soil sampling programs and one reverse circulation drilling campaign. Initial whole of licence soil sampling at Mansala conducted by the Company achieved similar results to Golden Guinea’s Alahiné work with significant gold anomalism defined.

Of the 3,758 soil samples analysed, numerous +40 parts per billion (ppb) gold anomalies were reported with a peak soil value of 93.98 grams per tonne being obtained from Mansala. Of note is that some 16% of the combined Alahine and Mansla Licence Areas (112.44 km2) returned anomalous soil values of +40 ppb gold.

Whilst exploration is not without risk, initial testing indicates potential for the Alahiné and Mansala licences to hold significant geological potential for the discovery and delineation of a large gold inventory.

The Board and Management have a practical approach to the mining industry and are optimistic that the licences may support the establishment of a large long-term gold mine where such an outcome would generate substantial enterprise and economic growth for Guinea and sizeable returns to Polymetals shareholders.

The Offer

Polymetals Resources Ltd (ACN 644 736 247) is offering 25 million new shares at $0.20 per share to raise $5M, with a provision to accept oversubscription of up to a further 10 million new shares to raise up to an additional $2M.

The Lead Manager to this offer is Beer & Co.

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.

Investors should be aware that there are risks associated with an investment in this Company.

The company does not give any assurance that exploration of the projects, or any future projects, will result in exploration success.

In addition, with a significant mineral endowment, political and legal uncertainty, institutional weakness and civil turbulence do place pressure on durable progress and development in Guinea.

A complete set of Risk Factors associated with an investment in the Company is included in Section 7 of the Disclosure Document. Investors should consider those risks carefully in deciding whether to invest in the Company.

Key Offer Statistics

Min. subscription Max. subscription
Total no. shares prior to this issue 53,440,000 53,440,000
Total no. of new shares offered under this prospectus 25,000,000 35,000,000
Gross proceeds of the offer $5,000,000 $7,000,000
Total number of shares on issue as at listing 78,440,000 88,440,000
Indicative market cap at the Offer Price $15,688,000 $17,688,000
Pro forma net cash (as at listing) $4,834,670 $6,690,595
Enterprise Value $10,853,330 $10,997,405

Indicative Timetable

Key Dates
Lodgement of Prospectus with the ASIC 21 April 2021
Exposure Period begins 21 April 2021
Opening Date 03 May 2021
Closing Date 11 June 2021
Issue of Shares under the Offer 04 June 2021
Despatch of holding statements 21 June 2021
Expected date for quotation on ASX 29 June 2021
This deal closed on June 11, 2021