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Far East Gold (FEG) rocketed onto the ASX this week, more than a month later than initially hoped. But the timing has been good for the company — its market cap sitting above $50 million on day two of trade, with shares peaking in value by as much as 50 per cent above the IPO issue price of 20 cents.
The company raised $11.73 million through the IPO process for six advanced copper and gold projects in Australia and Indonesia.
Chairman and co-founder Paul Walker said the company had “highly-skilled” people with on-ground experience.
“We are excited to continue our journey towards making Far East Gold a world-class tier 1, multi-billion-dollar mining company and unlocking significant value for our shareholders,” he said.
Meanwhile Carnarvon Energy (CVN) will raise $70 million from professional and institutional investors to finance its Dorado oil development in the offshore Bedout sub-basin in WA.
The raise is fully underwritten and is priced at 33 cents, which equates to an 18 per cent discount to the five-day volume weighted average price on March 25.
Managing Director and CEO Adrian Cook said the proceeds would bring the development to a final investment decision this year.
“Dorado is a world-class resource, containing high-quality reservoirs and fluids in shallow water which we expect to result in strong returns for our shareholders,” he said.
There are a number of companies in trading halt ahead of making capital raising announcements, including Bill Identity (BID), Chesser Resources (CHZ), Conico (CNJ), Great Boulder Resources (GBR), Jatcorp (JAT), Kogi Iron (KFE), Macarthur Minerals (MIO), New Zealand Coastal Seafoods (NZS) and PolarX (PXX).
Today, Deal Room features an interview with Desert Metals (DM1) which has raised $2.7 million through a placement for its greenfields nickel, copper and PGE exploration in the Narryer Terrane inland from Carnarvon in Western Australia.
Managing Director and geologist Rob Stuart said he believed the Dingo Pass project was the company’s most promising project due to its high conductance bodies beneath mapped mafic intrusive rocks. However, he said there’d also been intersections at the Belele project of volcanic massive suphide, or VMS-style mineralisation, in multiple drill holes.
Desert Metals’ placement was priced at 33 cents, a 25 per cent discount to where shares were trading leading up to the raise.
Meanwhile, Antilles Gold (AAU) revealed it’ll raise $3.25 million through a placement to advance its plans for a proposed open pit gold and silver mine operation on the Isle of Youth in southwest Cuba.
The capital raising is priced at 6.5 cents, with shares available to sophisticated investors.
The definitive feasibility study for the project is set to be complete by November.
Antilles Gold’s market cap sits at about $22 million.
