Raisebook

Aiming to Become a Significant Copper-Gold Explorer and Developer in North Queensland
R3D Resources
R3D Resources
Unlisted
  • Aiming to become a significant copper-gold explorer and developer in the Chillagoe Region in North Queensland.
  • Exposure to copper, gold, silver and zinc, which the company believes have attractive supply/demand fundamentals.
  • Portfolio has taken more than three years to assemble and provides an exciting base for future growth.
  • With further exploration, the company believes that a number of projects has potential for copper or zinc resources to be defined
  • $21.4M market cap at the issue price (excluding the exercise of any options)
  • The offer includes attaching Options on a 1 for 5 basis, exercisable at $0.40 within 5 years from the date of issue.
Raise Amount
$4,250,000
Offer Price
$0.2000
Closes
Mar 12, 2021

Through the acquisition of Tartana Resources Limited, the objective of R3D Resources Limited is to become a significant copper-gold explorer and developer in the Chillagoe Region in North Queensland.

R3D Resources Ltd is acquiring Tartana Resources, a company which has aggregated a portfolio of copper-gold exploration and mining assets in the Chillagoe Region in north Queensland.

The objective of the acquisition is to grow R3D Resources into a significant copper-zinc producer through exploring and developing these assets.

Tartana Resources has several projects with varying exploration maturity levels. Project details are further down the page.

The Offer

R3D Resources Ltd (ACN 111 398 040) invites investors to apply for 21,250,000 Shares at an issue price of $0.20 per Share to raise a minimum of $4,250,000, with attaching Options on a 1 for 5 basis, exercisable at $0.40 within 5 years from the date of issue.

The minimum subscription before the Offer proceeds is $4,250,000.

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 acquisition of Tartana Resources constitutes a significant change in the nature and scale of the Company’s activities and the Company needs to re-comply with Chapters 1 and 2 of the ASX Listing Rules as if it were seeking admission to the Official List.

There is a risk that the Company may not be able to meet the requirements of the ASX for re-quotation of its Shares on the ASX. Should this occur, the Shares will not be able to be traded on the ASX until such time as those requirements can be met, if at all. Shareholders may be prevented from trading their Shares should the Company be suspended until such time as it does re-comply with the ASX Listing Rules.

More detailed information on risk factors can be read in Section 4 of the Disclosure Document.

Capital Structure

Offer Shares to be issued 21.25 million
IPO size $4.25M
Total shares on issue 107 million
Total options on issue 34 million
Total convertible notes ($0.20 conv) 3.75 million
Indicative Market Cap $21M

Timetable

Takeover Closing Date Monday 22nd March
Receipt of ASX confirmation that Chapters 1 and 2 requirements satisfied / Offer expected to close Wednesday 10th March
Effective Date of Consolidation Friday 12th March
Allot securities to successful applicants Wednesday 17th March
Completion of Consolidation Tuesday 23rd March
Completion of Acquisition Tuesday 23rd March
Expected date for dispatch of shareholding statements Wednesday 24th March
Reinstatement of the Company to the Official List of the ASX and re-commencement of trading on ASX Tuesday 30th March 2021

Tartana Resources Projects
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Tartana Copper and Zinc Project in north Queensland:

Mining Leases ML 20489, ML 4819, ML 4820 and ML 5312 which includes the Tartana Copper Oxide Project, the Queen Grade Zinc Project and two copper sulphide projects which are the

Deeper Copper Sulphide Project below the existing open pit as well as the nearby Valentino Copper-Gold-Silver-Cobalt Project.

The Mining Leases contains heap leach pads and a solvent extraction-crystallisation plant which are being kept on care and maintenance and a partially rehabilitated open pit which yielded 1.2 million tonnes at 0.8% Cu oxide ore while deeper copper sulphide mineralisation has only been partially explored.

The Bellevue and Dry River exploration projects

These projects cover 25 km of the prospective OK member stratigraphy, and contain at least 10 copper/gold prospects and also surround the historic OK mines and nearby smelter site.

The company has recently applied for excluded land within EPM 25970 including the OK mine which has recorded small scale historical production of 80,000 tonnes at 9.2% Cu between 1901 to 1909.

Mountain Maid and Cardross Projects

Mining Lease Applications ML 100271 and ML 100270 and EPM Application EPM 27735 covering the Mountain Maid and Cardross Projects copper/gold projects. These projects have been the subject of several drilling programmes by previous explorers with the results supporting further exploration.

The Mountain Maid prospect was discovered by Cyprus Amax in the 1990s with its discovery hole reporting 275 m at 0.3g/t Au including 60 m @ 0.7 g/t at the top of the hole (note: the intersection may not meet JORC 2012 standards, ref: Wilkins 1996).

Axiom Mining implemented drilling programs which culminated in the ASX announcement of a JORC 2004 Compliant Inferred Gold Resource to a depth of 200m on the 10th December 2010.

However, under the JORC 2012 Code of the Company’s Independent Geologist, SRK believes that this resource is best presented as an Exploration Target.

It has estimated an Exploration Target to a maximum depth of only 50 m and ranging between 0.9 Mt grading at 0.57 g/t Au containing 17 koz Au and 6.0 Mt grading at 0.31 g/t Au containing approximately 59 koz Au), until Tartana has completed further geological review/ modelling work and potentially carried out additional site exploration work in support of a re-estimation to meet JORC Code (2012) guidelines.

The Exploration Target is conceptual in nature due to a lack of recent exploration and not guaranteed to become a Mineral Resource.

At Cardross, small scale historical production is recorded at 24,000 tonnes yielding 2,000 tonnes of Cu, 2,200 oz Au and 87,000 oz Ag from the Chieftan mine.

Nightflower Silver Project

An exclusivity/option agreement to purchase the Nightflower Silver Project (EPM application 27959). Axiom Mining reported to the ASX an initial JORC 2004 compliant Inferred Resource on the 26th September 2008 after a limited drilling programme testing one of the two geophysical anomalies.

Under the JORC Code 2012, SRK has downgraded the Nightflower Mineral Resource Estimate to an Exploration Target of 0.21-0.59 Mt at a grade of 180–200 g/t Ag, 3.5-5% Pb, 1.7-2.2% Zn and 0.1-0.2% Cu, albeit with excellent exploration potential.

It also notes that the potential quantity and grade of the material in any Exploration Target is conceptual; there has been insufficient exploration to estimate a Mineral Resource

according to the guidelines of the JORC Code and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Additional Projects

  • The Dimbulah Porphyry Copper project (EPM 27089) covers a copper-mineralised, multi-phase porphyry intrusive identified from historical drill intersections, mapping and geophysics.
  • A sale and purchase agreement with Newcrest Mining Limited covering its 1250 km2 Bulimba project north of Chillagoe.
  • Tasmanian Zinc Project at Zeehan is a low-grade furnace slag/matte project which contains a JORC 2012 compliant Indicated Resource of 469,000 tonnes at 13.3% Zn, 1.7% Pb and 53 g/t Ag in two stockpiles. Tartana Resources has exported two 22,000 tonne trial shipments to South Korea with a third trial being processed. It has applied for permitting to export a further 335,000 tonnes.
  • Mount Hess Copper-Gold Project in Central Queensland: EPM 18864 and EPM 19252 where historical exploration has identified zones up to 10 metres wide containing elevated copper and gold grades with strike lengths in excess of 200 metres.
  • Amber Creek Molybdenum-Tin-Tungsten Project, north Queensland: EPM 18865 where previous exploration has identified extensive and cross-cutting mineralised veins.
This deal closed on March 12, 2021