China-focused gold explorer Kaiyun plans to raise $3 million to $3.5 million ahead of a listing on the NSX in October.

Kaiyun first lodged a prospectus in January. After an interim stop order, the company released a new prospectus in June and a supplementary prospectus last week.

Kaiyun holds a licence to explore a project called Machang in China’s Yunnan Province — a region that borders Burma, Laos and Vietnam.

The project is at early stage with some geological mapping carried out and excavation of seven trenches at five locations as well as hand-dug pits to 4m in depth.

So far the group has reported samples ranging from 0.3 grams of gold per tonne to 3.2 g/t based on work done in 2015 and 2016.

High-grade gold is considered to be anything above 5g/t.

Chairman Fong Wing Yiu says he plans to use the money to test the site with drilling — and for possible gold acquisitions in China and Australia.

After listing Mr Yiu will hold between 58 per cent and 65.9 per cent of the shares.

“In the event Mr Yiu fully subscribes for his underwriting commitment of $500,000 under the Offer, Mr Yiu will hold 65.9 per cent of the issued shares of the company,” the prospectus notes.

“Mr Yiu will be in a position to exercise significant influence over matters requiring shareholder approval, including the election of Directors, and in so doing, may not act in the best interests of minority shareholders,” the prospectus says.

The offer was this week extended to October 15 with a proposed NSX listing on October 22.

The NSX — an alternative stock market to the dominant ASX — has been trying to attract more resources companies.

“Some of the biggest companies we have listed have come from the oil and gas and resources space and so we have had a great experience with them in the past and we’re obviously looking to get more on board now,” NSW chief Ann Bowering told Stockhead in February.

The NSX — which targets companies with a market cap of between $3 million and $50 million and has a smaller spread requirement than the ASX — had just six resource companies at the time.

Recently a handful of companies have announced IPOs aimed at NSX listings.