AK1
Australian Kaolin Ltd
Kaolin Exploration & Development Company
Closed
Price
0.200
Existing Issue
37,000,000
Additional Issue
-
Subscription
6.00M
Stock Issue
30.00M
MarketCap
13.40M
Open Date
2022-04-20
Close Date
2022-05-20

Overview

Australian Kaolin Ltd is a Kaolin exploration & development company, it has secured the rights to two kaolin projects in the southwest of the world-class stable mining jurisdiction of Western Australia. Historical reports detail the two projects as containing substantial tonnages of kaolin, additionally there exists further exploration target potential identified by the surface outcropping kaolin and proximity to other adjacent kaolin resources.

Disclaimer:

Information / summary provided on this webpage comes from the Prospectus, which only serves general information purposes. It shall NOT be considered as complete or a substitute for you to read and understand the Prospectus. You shall not rely on information provided here for your investment decisions. Prior to making any investment decisions, it is important for you to read and understand the Prospectus and/or any other disclosure documents issued by the relevant product issuer, to ensure that you fully understand the risks involved in light of your personal circumstances; and you shall also obtain professional / independent financial advice.

This page contains IPO information based on the Australian Kaolin Ltd Prospectus dated 08 April 2022: Please click to read the Australian Kaolin Ltd Prospectus

Key Dates

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(Disclaimer: The above key dates are for references only. They are subject to change by the company at any time. You shall not rely on this information for any investment decisions. For any changes, you shall refer to the company’s official website or the latest version of the Prospectus. While reasonable efforts are made to update the information, we make no warranty about the accuracy, completeness, reliability or timeliness of the information.)

IPO Summary

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Details of The Offer

Lead Manager:

  • CPS Capital Group Pty Ltd

Investors participate in an offer of up to 30,000,000 New Shares at $0.20 per share, to raise up to $6,000,000 (before costs). The Offer is not underwritten.

 

The consist of the Offer:

  • Public Offer, which is open to members of the public who can apply using the Public Offer Application Form.

Use of funds

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Project Overview

The Company has 100% interest in the following projects:

  • White Swan Project: comprising of exploration licences E63/1895, E63/2047, E63/2133, E63/2164 and E63/2166 covering an area of ~827 km2, located approximately 17.5 kilometres north-northeast of Esperance, Western Australia; and
  • White Rabbit Project: comprising of one granted exploration licence E70/5059 covering an area of approximately 43 km2, located in Gabbin being 285 kilometres northeast of Perth, Western Australia,

White Swan Project

The White Swan Project comprises of granted exploration licenses EL63/1895, EL63/2047, E63/2133, E63/2164 and E63/2166. The Company had acquired a 100% interest in EL63/1895 and EL63/2047, via the Tenement Sale Agreement. The White Swan Project is approximately 82,700 hectares or 827 square kilometres and is located approximately 30 kilometres via a sealed road from the deep-water port of Esperance which has cape size bulk ship-loading and container freight capacity. The drilling undertaken in that historical program has sufficiently determined the validity and potential of White Swan to host a significant kaolin resource with low levels of impurities. However, to confirm a resource and reserves to a 2012 JORC standard, further drilling and metallurgical test-work will be required at White Swan.

 

The known kaolin-rich area at White Swan is within freehold farming properties that is, for the most part, fully cleared of vegetation and either cropped or holds livestock. Agreements are in place with property owners where the known mineralisation occurs for the purposes of exploration drilling and sub-surface rights at White Swan.

White Rabbit Kaolin Project

The White Rabbit Kaolin Project comprises a single granted exploration licence, E70/5059 held by McLeod. This tenement was acquired by the Acquisition Agreement. This exploration licence applied for before most others in the area and as such targets the significant historically identified “Watts-Ottey-Whitsed claims” kaolin occurrence. Historical summaries of previous work conclude that there is a significant amount of high purity kaolin with low levels of contaminant elements on the tenement. The western part of the tenement is also close to the adjacent Castlemaine deposit. Historical maps indicate that an extension of the Castlemaine kaolin deposit may also exist within E70/5059.

 

This is a grass-roots project with significant potential and warrants exploration and metallurgical test-work which is required to confirm a resource and reserves to a 2012 JORC standard. This report recommends drilling and metallurgical test-work and a beneficiation pilot plant at White Rabbit. A surface rights agreement is not currently in place with the owners of the freehold titles at Gabbin. Discussions with landowners are underway, meanwhile the Company intends to complete early exploration activities to establish the prospectivity for kaolin prior to establishing formal surface rights agreements with the respective landowners.

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Proposed Exploration Budget

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White Swan Project

  • to achieve a maiden JORC mineral resource by expanding and confirming the potential of the area previously drilled by Western Mining Corporation as well as neighbouring areas. It is anticipated that approximately 150 air-core and 10 PQ3 diamond core holes to 25 metre deep on average, will be drilled during the first year which will encompass approximately 2,150 metres of drilling;
  • complete an initial stage of sighter metallurgical test-work looking at physical characteristics (such as silica and alumina content, impurities sizing, brightness and viscosity) and mineralogy aimed at testing the suitability for kaolin markets;
  • review the raw and screened kaolin for suitability as an unprocessed raw kaolin product fit for direct shipping to overseas markets;
  • using the screened kaolin as a feedstock to produce higher quality materials for sale.;
  • optimisation test-work to focus on either wet or dry beneficiation techniques to produce a product fit for direct shipping to overseas markets.

White Rabbit Project

The Company continues to progress the geological reconnaissance of the White Rabbit Project area at Gabbin to identify suitable kaolin targets. Negotiations with landowners is underway to secure land access for the purposes of exploration drilling and sub-surface rights at the Project. Exploration aircore drilling in the latter half of 2022 is planned to identify a JORC resource, with follow up infill drilling in 2023. Trial beneficiation and processing is planned for 2023 to determine product specifications and to produce samples for customer evaluation.

Financial Performance

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Substantial Shareholder

As of the date of the Prospectus

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On completion of the issue of Shares under the Offer

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Director and Key Management

Luke Atkins

Non Executive Chairman

Mr Atkins is a lawyer by profession and was previously the principal of Atkins and Co Lawyers, a Perth based legal firm which he owned and managed for seven years. In last 20 years Mr Atkins has been involved in the mining sector as a Director, Managing director and Chairman of a number of Public companies. Mr Atkins has over twenty years experience in the Western Australian resources industry and is currently Chairman of Altech Chemicals Ltd (ASX: ATC), a director of Australia Silica Quartz Ltd (ASX:ASQ) and a director of a number of proprietary companies with involvement in the areas of mineral exploration, investment, property development and manufacturing. Mr Atkins brings to the Company extensive experience in corporate governance, capital raising and public listed companies. The Board considers that Luke Atkins is not an independent Director.

 

Michael Frayne

Non-Executive Director

Mr Frayne is a qualified accountant and geologist with 30 years’ experience in the resource and finance sectors. He has provided corporate management and advice to numerous resource, commodity and energy companies, the majority of which have been listed on London and Australian Stock Exchanges, with projects in Australia, Africa, Asia, North and South America. He is currently the Chief Executive of Capital Metals plc, (CMET:LSE) a minerals sands company listed on the AIM market in London. Mr Frayne is free from any business or other relationships that could materially interfere with, or reasonably be perceived to interfere with, the independent exercise of the person’s judgement as such the Board considers that Michael Frayne is an independent Director.

 

Annette Oliver

Non-Executive Director

Annette has degrees in Applied Science, Computer Science and Architecture. She has over 20 years experience in the Western Australian resource sector in the fields of software development, data mining, tenement management, resource identification, minerals processing, research and development and resource offtake marketing. Annette initially worked for BHP Iron Ore both in the Pilbara and Perth, Western Australia for a number of years and has more recently worked on new project identification and development of resource projects. She has been a Director and co-founder of a number ASX listed companies in the resource and other sectors and has gained specific expertise in working with kaolin over the last fifteen years.The Board considers that Annette is not a independent Director.

 

Robert (Samuel) Middlemas

Non-Executive Director & Company Secretary

Mr Middlemas is a Chartered Accountant with more than 30 years experience internationally and within Australia in various financial and corporate roles with a number of listed public companies operating in the resources and mining sectors. He was previously in the Australian audit division of Pricewaterhouse including secondments to Canada and the United Kingdom. He is the principal of corporate advisory company which provides financial, board and secretarial services specialising in capital raisings and initial public offerings. He is currently the Chief Executive Officer of Australian Silica Quartz Group Limited (ASX Code: ASQ) a Silica sands company listed on the ASX. The Board considers that Mr Middlemas is not an independent Director.

Disclaimer

ASX Codes, Offer Opening and Closing Dates are proposed only and are subject to change without notice.

 

The IPO information on the website provided by 61 Financial only serves general information purposes, it does not constitute financial product advice. All IPO information is retrieved from the Company’s Prospectus. They are subject to change at any time without notice. Investors shall refer to the Prospectus for detailed information.