KAU
Kaiser Reef Limited
Gold Exploration Company
Listed
Price
0.200
Existing Issue
4,950,001
Additional Issue
6,000,000
Subscription
4.50M
Stock Issue
22.50M
MarketCap
6.69M
Open Date
2019-12-13
Close Date
2020-02-07

Overview

Kaiser Reef Limited is an Australian unlisted public company, which was incorporated on 2 September 2019 for the purpose of completing the Acquisition and being admitted to the Official List of the ASX. The Company has entered into the Acquisition Agreement with Chase Metals Pty Ltd (Chase Metals) pursuant to which the Company has agreed, subject to satisfaction of certain conditions precedent, to acquire all of the Chase Shares from the Chase Shareholders. Chase Metals is the beneficial owner of one exploration licence (EL 8491) and one exploration licence application (ELA 5854) located in New South Wales.

This page contains IPO information based on the Prospectus dated 5 December 2019. Link for the Prospectus: https://www.kaiserreef.com.au/prospectus

Key Dates

text (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

The Company has appointed Peloton Capital as lead manager to the Offer.

 

The Lead Manager will receive a fee of 6% of the total amount raised under the Offer (except for funds raised under the Chairman’s list. A co-ordination fee of 1% will be payable to the Lead Manager for all funds raised via the Chairman’s list).

 

  • The Offer

Pursuant to this Prospectus, the Company invites applications for 22,500,000 Shares at an issue price of $0.20 per Share to raise $4,500,000. The Shares offered under this Prospectus will rank equally with the existing Shares on issue.

 

  • Minimum subscription

The minimum amount which must be raised under this Prospectus is $4,500,000 (Minimum Subscription). If the Minimum Subscription has not been raised within 4 months after the date of this Prospectus, the Company will not issue any Shares and will repay all application monies for the Shares within the time prescribed under the Corporations Act, without interest.

 

  • Oversubscriptions

No oversubscriptions will be accepted by the Company.

 

  • Underwritten

The Offer is not underwritten.

Company's Projects

  • Summary

The Stuart Town project covers a significant historical gold mining districtwith over 80 recorded historic gold workings. The region is enticinglylocated between the Cadia mining operations, operated by Newcrestwhich is Australia’s largest gold mine (Resources of 42M ounces gold and8.7M tonnes copper) and the Boda copper/gold porphyry discovery heldby Alkane – whorecently drilled 502m @ 0.48 g/t gold, 0.2% copper.

 

  • Geology and Mineralisation

The Stuart Town project is set within the Lachlan Fold Belt, New SouthWales. The mineralisation styles range from lode style to alluvial and deeplead mines. The source and pathways for the extensive goldmineralisation remains unknown however some of the mineralisation ishosted within felsic units such as brecciated rhyolite and indicates thatan underlying felsic intrusive unit may be related to the goldmineralisation. This is encouraging from the perspective of exploring forlarger gold systems and is a primary initial exploration target. A moredetailed description of the geology and mineralisation is detailed in theIndependent Geologist’s Report.

 

  • Previous Exploration

Gold mining in the Stuart Town project area first commenced in the 1850’sand no records have been kept on the production sourced from the fieldsduring the rush between 1850’s and 1875 but it is considered to besignificant. More than 5t (170,000 ounces) of gold are recorded to havebeen produced between 1875 (when mine records were first kept in NSW)and the early part of the 20th Century.

 

Subsequent explorers included CRAE (now Rio Tinto Limited) who focusedon large scale and encouraging soil sampling programmes. The workfocused on Cadia-style deposits mostly to the west and south of the mainStuart Town gold workings. Carpentaria Exploration Limited (a subsidiaryof Mount Isa Mines Limited -MIM) also conducted work and commentedthat magnetic and radiometric data suggested a possible underlyingintrusive unit that may be the source of the gold mineralisation. This targethas not been drill tested.

 

  • Exploration Potential

The property is considered prospective for large scale intrusive gold mineralisation. The existence of a substantial goldfield overlying the exploration targets is considered to enhance this as an exploration target and further encouragement is provided by the felsic host of some of the mapped and previously mined mineralization.

About Stuart Town

The Stuart Town licences include the granted EL 8491 and an ELA 5854. On listing, KAU will have the rights to these licences as a result of acquiring 100% of the capital of Chase. The total area of EL 8491 is 12 graticular units (or about 32.55 km2) and the area of ELA 5854 is 15 graticular units (or about 43.34 km).

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  • Location and access

The Stuart Town Project is located around 300 km northwest of Sydney. Access from Sydney is via the Great Western Highway to Orange, a distance of 262 km, and a further 62 km to the north on a sealed road. Access within the Project is via station tracks and minor shire roads.

 

Stuart Town may also be reached by sealed road from Wellington via sealed roads 35 km south of Wellington to the township, via Burrendong Way. It is serviced by the main western railway, which provides regular service to/from Sydney. The closest regular air service is to and from Orange. There is a well-maintained network of shire and farm roads throughout most of the project area.

 

  • Aboriginal heritage, Native Title and environment

The Stuart Town Project lies within the Wellington Local Aboriginal Land Council Region. There are currently no Registered Native Title Applications, Determination Outcomes or Indigenous Land Use Agreements in Place over the Stuart Town Project area.

 

Prior to ground-disturbing exploration, a Right to Negotiate process11 must be followed by the negotiation parties (Title Holder and Native Title Claimants) to ensure exploration is lawfully completed. Claimants have three months to commence the negotiation process with the Title Holder once the negotiation has been signaled.

Proposed Exploration Programs and Expenditure

Snowden (Independent Geologist’s Report provider) considers the Stuart Town Project to represent an exploration project that enjoys relative ease of access and the regional presence of significant infrastructure. Work by historical explorers has identified sufficient indications of mineralisation to warrant further exploration on the premise that the intrusive system is large.

 

KAU proposes to:

  • Rank all structural, geochemical and geophysical targets in order to prioritise drill targets
  • Drill the highest priority targets from surface to confirm their location, geology and geometry
  • Conduct further geophysical programmes to identify the location of favourable structure and associated indications of mineralisation
  • Collect samples for metallurgical testwork.

 

Snowden has been advised that KAU has budgeted approximately $2.5 million on direct exploration out of available funds of $4.5 million post expenses to issue. The budget contemplates exploration expenditure at Stuart Town over two years and Snowden considers this to be appropriate to support the strategy described.

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Use of Funds

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Financial Information

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Security holdings of Directors

As at the date of this Prospectus, the Directors have relevant interests in Securities as follows:

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Following completion of the Offer, the Directors will have relevant interests in Securities as follows:

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Board of Directors

Adrian Byass

Non-Executive Chairman

 

Mr Byass has more than 20 years’ experience in the mining industry with extensive experience as a Board member of ASX and AIM listed companies. This experience has principally been gained both listed and unlisted entities around the world through the evaluation and development of mining products for a range of base, precious and specialty metals and bulk commodities. Mr Byass is currently on Boards of ASX listed base metal, gold, lithium and phosphate companies and has extensive experience in gold exploration and gold production at executive level appointments in his technical capacity as a geologist.

 

Mr Byass is currently a director of Infinity Lithium Corporation Limited (ASX:INF), Galena Mining Limited (ASX:G1A), Kingwest Resources (ASX:KWR) and Fertoz Limited (ASX:FTZ).

 

Jonathan Downes

Executive Director

 

Mr Downes has more than 25 years’ experience in the mining industry and has worked in various geological and corporate capacities. Mr Downes has experience with nickel, gold and base metals and has also been intimately involved with numerous private and public capital raisings. Mr Downes was a founding director of Hibernia Gold (later Moly Mines Ltd) (ASX: MOL), Ironbark Zinc Limited (ASX:IBG) and Siberia Mining Corporation Ltd (ASX: SIB) and is currently a non-executive director of Galena Mining Limited (ASX: G1A), Kingwest Resources Limited (ASX:KWR) and Corazon Mining Limited (ASX: CZN).

 

David Palumbo

Non-Executive Director and Company Secretary

 

Mr Palumbo is a Chartered Accountant and graduate of the Australian Institute of Company Directors with over fourteen years’ experience across company secretarial, corporate advisory and financial management and reporting of ASX listed companies. Mr Palumbo is an employee of Mining Corporate Pty Ltd, where he has been actively involved in numerous corporate transactions. Mr Palumbo is currently a director of Krakatoa Resources Limited (ASX: KTA).

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.