- Western Australian explorer Pinnacle Minerals (PIM) will soon join the ASX following the completion of its IPO
- Pinnacle is focused on kaolin (clay) which puts the company in a well-placed position in the global market’s growing demand but limited supply of kaolin
- The incoming ASX-lister owns 100 per cent stake in four key projects which will be explored using funds raised from the IPO
- Pinnacle has raised $4.5 million through the issue of around 22.5 million shares at 20 cents each
- Pinnacle expects to be admitted to the Official List of the ASX on March 24
Western Australian explorer Pinnacle Minerals (PIM) is looking to list on the Australian Securities Exchange (ASX) through an Initial Public Offering (IPO) targeting between $4.5 and $5.5 million.
Company strategy
The incoming ASX-lister plans to make its mark by focusing on the exploration for, and development of, kaolin mineral deposits at its projects in South Australia and WA.
Strategically, Pinnacle holds 100 per cent interest in four key projects from its acquisition of Bulk Minerals (and its subsidiaries) and Witby Clays which are prospective for kaolin, a type of mineral clay with applications in production of ceramics, fibreglass, plastics and cosmetics.
The Camel Lake and White Knight projects are located in SA while the Holly and Bobalong kaolin projects are located in WA.
The prospects are well-situated in the global market, where kaolin fetches at least $300 a tonne.
The current global kaolin market is worth US$6.4 billion (A$8.75 billion) and is expected to rise throughout the year due to a global shortage. The global market net worth is expected to rise to US$8.23 million (A$11.25 million) in 2024.
The rising demand and global shortage of kaolin positions the company well to become a reliable supplier domestically and internationally.
The board and management team comprises Executive Director Robert Hodby, who has over 20 years of industry experience in financing and administration of public and listed companies and a Non-Executive Chair William Whitham who has been involved in a number of ASX listed companies in member-based organisation leadership.
The board will also consist of Non-Executive Director Stephen Ross who has been in the international minerals industry for 30 years and Non-Executive Director Lincoln Liu who has experience in IPOs, placements and private equity.
Initial Public Offering
The IPO has raised $4.5 million through the issue of 22.5 million shares at 20 cents each.
Pinnacle plans to use the funds to conduct exploration work across its SA and WA portfolio as well as cover administration costs.
PAC Partners Securities has been appointed by Pinnacle to be lead manager for the IPO.
The company has already outlined a detailed two-year exploration and development plan which includes activities like aeromagnetic surveys of the WA tenements, aircore drilling at the Bobalong and Holly projects and further studies.
If all goes to plan, Pinnacle will first further explore and develop the WA projects and then its SA projects once the relevant permits have been granted.
Pinnacle expects to be admitted to the Official List of the ASX on March 24, however dates are indicative and subject to variation.