IPO Watch: AMD Resources sets $20m target for ASX listing
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Multi-commodity explorer AMD Resources is taking steps to list on the ASX with the launch of an initial public offer to raise up to $20.3 million.
The company’s priority is its Normanby Island gold project in Papua New Guinea and Cumberland silver and gold project in North Queensland.
At the helm of AMD is Ian Mathieson as chairman and Tony Bell as managing director and CEO.
Mr Mathieson was the director, financier and owner of South Australia Mining Resources, which operated the Kanmantoo copper mine.
Mr Bell, meanwhile, has a background in capital advisory, management consulting and capital raising across a range of industries, including resources, over the past 20 years.
AMD is aiming to raise at least $10.4 million at an issue price of 50c a share to list on the ASX in early August.
The cash raised will be used to define a resource for the Normanby Island project, undertake phase one drilling at the Cumberland project and facilitate further exploration across AMD’s other projects in Papua New Guinea and Australia.
The company’s goal is to rapidly grow its Normanby Island project by defining an initial gold resource at the Imwauna prospect before establishing a much larger 1-million-ounce high-grade resource.
At the Cumberland project, recent exploration has uncovered a 3km zone of “bonanza grade” silver mineralisation with associated gold mineralisation.
Miners often use the term “bonanza” to describe grades that are well above the 50g/t silver that is considered high-grade.
AMD has so far discovered 16 individual veins with high-grade gold at surface.
The most promising, known as “Rob’s Vein”, is a +650m long vein system averaging 379g/t silver and 2.1g/t gold at surface.
AMD joins around 10 other resources players that are working towards an ASX listing at the moment.