Raisebook

Namibia Copper Gold Explorer | EV on Listing of $4.2M | Ex Gold Road Chairman
Virgo Resources Limited
Virgo Resources Limited
ASX:VIR
  • Attractive portfolio of copper/copper-gold projects located in the stable, safe and mining friendly jurisdictions of Namibia and Botswana.
  • Experienced Board with expertise in exploration, Mineral Resource / Ore Reserve delineation, feasibility studies, mine development and production in Africa.
  • Over the past 12 years, Virgo Resources Chairman Ian Murray was Exec Chairman, then MD, then CEO of Gold Road Resources (ASX: GOR), where he grew the company from a market cap of approx. $5M to approximately $900M.
  • Managing Director Dr Quinton Hills is the former exploration manager of Botswana-focused copper company Discovery Metals, and was responsible for the discovery of ~100 Mt of copper resources at the Boseto Copper Project.
  • Current Mineral Resource of 10.2Mt @ 1.9% Cu and 0.3g/t Au on the Hope Copper-Gold Project in Namibia – with excellent potential for further copper mineralization exploration.
  • Extensive landholding in the Kalahari Copper Belt in Botswana that has yielded valuable discoveries for Cupric Canyon Capital (US Private Equity) and MOD Resources Limited (ASX: MOD).
  • The Rhinelands Copper Project has multiple weathered, iron-oxide copper + gold style prospects along a regional scale structure with grades up to 3.24% Cu but remains to be properly tested at depth.
  • Near Term Focus on drilling and the delivery of a Mineral Resource of increased size and confidence on the Hope Copper-Gold Project, plus exploration at the Kalahari Copper Belt Project.
  • Market capitalisation of ~$10M, assuming a $5.5M raise. Enterprise Value ~$4.2M.
Raise Amount
$4,500,000
Offer Price
$0.2000
Closes
Dec 4, 2019

Virgo Resources Limited is an emerging Namibia and Botswana-focused Copper-Gold Company.

Virgo’s flagship project is the Hope Copper-Gold Project which, along with adjacent tenures, covers over 1,200 km2 of the highly prospective Matchless Copper Belt and is the most advanced project in the Company’s copper-gold project portfolio.

The project contains a combined Mineral Resource of 10.2Mt @ 1.9% Cu and 0.3g/t Au at a 0.7% Cu cut-off, reported in accordance with the JORC Code (2012).

Approximately 30% of the Mineral Resource is classified in the ‘Indicated’ Mineral Resource category with the balance in the ‘Inferred’ Mineral Resource category.

The strategy for the Company to deliver Shareholder value is twofold.

The first part of the strategy is to concentrate on increasing the size and confidence of the current, high-grade mineral resources on the Hope Copper-Gold Project; especially understanding the unrealised gold grade potential within the current mineral resource due to many historic drill holes not being assayed for gold, as well as extending the known mineralisation along plunge.

This will involve resampling of historic drill core, twinning historic drill holes and completing new drilling along plunge of the thickest and highest-grade mineralisation found to date. These results will then be applied to generate an improved mineral resource estimate that will underpin a scoping study into the viability of a mining operation on the Hope Copper-Gold Project.

The second part of the strategy is to complete modern, regional exploration on the Hope Copper-Gold Project (electromagnetic surveys and then drill testing), as well as the adjacent tenures along the Matchless Copper Belt. The Board considers that due to the significant extent of mineralisation already found and the lack of modern, regional exploration in this area, this project remains highly prospective.

Following admission to the Official list, Virgo Resources will be exploring and developing copper projects in Namibia and Botswana through:

  • Exploration activities planned to increase the size and confidence of the current Mineral Resources, as well as discover new Mineral Resources on the Hope Copper-Gold Project License and adjacent tenures;
  • Evaluation and potential development of Mineral Resources on the Hope Copper-Gold Project License area; and
  • Exploration on the Kalahari and Rhinelands copper projects.

The Offer

Virgo Resources Limited (ACN 626 148 347) invites applications for an offer of up to 27,500,000 Shares at an issue price of $0.20 per Share to raise up to $5,500,000 with a minimum subscription of 22,500,000 Shares at an issue price of $0.20 per Share to raise $4,500,000.

The Shares offered under this Prospectus will rank equally with the existing Shares on issue.

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.

No assurance can be given that the Company will achieve commercial viability through the exploration or development of its Projects.

A complete set of risks associated with an investment in the Company is included in Section 7 of the Disclosure Document.

Key Offer Details

Minimum Subscription ($4,500,000) Maximum Subscription ($5,500,000)
Current Shares on issue 16,882,501 16,882,501
Offer Price per Share $0.20 $0.20
Shares to be issued under Offer 22,500,000 27,500,000
Shares to be issued to Lead Manager (or nominee) 2,500,000 2,500,000
Shares to be issued to Vendors 4,600,000 4,600,000
Unallocated pool of Broker Shares 1,000,000 1,000,000
Total number of Shares on issue following the Offer 47,482,501 52,482,501
Market capitalisation at listing (undiluted) $9,496,500 $10,496,500

Indicative Timetable

The below dates are indicative only and may change without notice. The Company reserves the right to extend the Closing Date or close the Offer early without prior notice.

Event Date
Closing Date of the Offer 4 December 2019
Issue of Shares under the Offer 11 December 2019
Despatch of holding statements 13 December 2019
Expected date for quotation on ASX 20 December 2019
This deal closed on December 04, 2019