- Mongolian explorer Resilience Mining Mongolia (RM1) is once again seeking to list on the ASX
- The company entered an acquisition and joint venture deal with Kincora Copper which involved RM1 listing on the ASX and undertaking an IPO to raise $5 million for exploration
- After withdrawing its application and being granted an extension to the deal with Kincora, Resilience is launching a larger IPO of between $7.5 and $10 million at 20 cents per share
- The IPO is slated for April and Resilience has until the end of February to appoint a new lead manager
Resilience Mining Mongolia (RM1) is once again seeking to list on the ASX.
In July last year, the Mongolian explorer entered a definitive acquisition and joint venture agreement with ASX-lister Kincora Copper (KCC) for Kincora’s Mongolian asset portfolio.
Kincora said the deal would provide it with significant upside to exploration and development potential without near to medium-term funding obligations.
Resilience was also expecting to undertake an initial public offering (IPO) to be led by Novus Capital. The IPO was seeking to raise between $5 and $6 million and these funds would be used for drilling and field work in Mongolia.
Post-IPO and ASX-listing, Kincora would retain a 9.9 per cent stake in the newly-listed stock.
However, RM1 withdrew its application and the agreement between the company and Kincora was updated after Kincora granted it an extension.
Now, Resilience Mining Mongolia is planning to complete its IPO in April and will aim to raise between $7.5 and $10 million at 20 cents per share.
RM1 has until February 28 to appoint a new lead manager and will need to refund Kincora at least 50 per cent of its Mongolian Maintenance Payments once it receives further pre-IPO funding.
An additional requirement of the extended deal is Resilience will need to cover the costs of converting the exploration target to a maiden JORC and/or NI 43-101 resource for the Bronze Fox project ahead of the IPO in April.