- ASX newcomer Desert Metals (DM1) soared on its first day of trade today, with shares opening 140 per cent above the company’s IPO price
- While the nickel and copper explorer raised $5 million at 20 cents per share in its IPO, shares first traded today for a neat 48 cents each
- It seems investors are happy to place some early bets on the company’s WA-based exploration strategy
- Desert controls a 1665-square-kilometre tenement package in Western Australia’s Yilgarn Craton
- The company has immediate plans to drill test two of its most advanced prospects in this project, with an electromagnetic survey to follow in January 2021
- Managing Director Robert Stuart has 25 years of experience in mineral exploration, previously having worked as a program manager for BHP
- This afternoon, shares in DM1 are still trading strong — up over 150 per cent to 50.5 cents each
- The company has a market cap of just under $16 million
It’s been a stellar first day on the block for ASX newcomer Desert Metals (DM1) today, with shares opening 140 per cent above the company’s IPO price.
The nickel and copper explorer raised $5 million at 20 cents per share in its oversubscribed IPO — not long after raising $1 million at 10 cents per share in a pre-IPO capital raise. Upon listing on the ASX, however, shares in the company first traded for 48 cents.
It seems investors are happy to place some early bets on the company’s exploration strategy, which is focussed primarily on the north-west region of Western Australia’s Yilgarn Craton.
The company said its immediate focus is on drill testing two of the most advanced prospects at its Narryer project — namely the Irrida Hill and Innouendy prospects.
Importantly, the company said all necessary approvals for drilling at Irrida Hill have been locked in, while heritage clearance negotiations are underway at Innouendy. Moreover, the costs of the drilling are covered in part by a $150,000 exploration incentive scheme (EIS) grant from the WA State Government.
At the same time, Desert is planning to kick off a major electromagnetic survey at the project in January 2021 to cover the prospective areas between Irrida and Innouendy.
All up, Desert Metals owns a 1665-square-kilometre tenement package in the Yilgarn Craton, which is prospective for nickel, copper, and gold.
With more than 25 years of mineral exploration experience, Desert Managing Director Robert Stuart has explored for precious and base metals — as well as bulk commodities — across Australia, North America, African, Asia, and Russia.
Rob also spent half a decade as a program manager at BHP, where he managed copper, nickel, and coal exploration for the mining giant in WA, Russia, and Central Asia.
Shares in DM1 opened strong and have just gotten stronger, up 152.5 per cent to 50.5 cents each at 2:32 pm AEDT. The company has a market cap of just under $16 million.