Spain-focused gold explorer Black Dragon Gold plans to drop its Toronto stockmarket listing after it joins the ASX.

The UK-based company — which is listed on the small cap TSX Venture Exchange (TSX-V:BDG) — this week outlined a plan to raise $4 million to $6 million selling shares at 20c ahead of an August ASX listing.

Managing director Paul Cronin said last year Black Dragon raised $500,000 to restructure its balance sheet — and the majority of that funding came from Aussie investors.

“It’s a market that we think Black Dragon will work in better given its grade, the size of its deposit and I think deposits like this are better understood by the Australian market than they are in Canada,” Mr Cronin told Stockhead from the UK.

“And quite frankly the company has barely traded on the TSX in four years.

“So trying to sort of re-start it there was always going to be more of a difficult prospect than just picking it up and taking it to the ASX.”

Black Dragon is also listed on the Frankfurt Stock Exchange (FWB:BCD), but Mr Cronin said that was just a “technical cross listing” that enabled European investors to buy Australian or Canadian stocks more easily.

Dollars coming in 

Black Dragon already has firm commitments for the minimum $4 million.

“We’re pretty confident in raising the full $6 million, certainly very confident in raising the $4 million,” Mr Cronin said. “That’s largely already done.”

Black Dragon owns the Salave gold project in northern Spain that already has a resource of 6.5 million tonnes at 4.5 grams per tonne (g/t) for 944,000 contained ounces of gold.

Generally anything above 5g/t is considered high grade.

The company says the current resource makes Salave one of the biggest undeveloped gold projects in Europe.

Following in Adriatic’s footsteps

Mr Cronin oversaw the successful listing in April of Bosnian base metals play Adriatic Metals (ASX:ADT) – which has traded as high as three times its IPO price of 20c since making its debut.

He believes Black Dragon has the same chance of success.

“The story of Adriatic is really around high-grade and what we’ve got at Salave is high-grade gold,” he explained.

“I’m confident some of the drilling results will spark a bit of interest and I think when the investor base understands that we’ve got such great news flow coming through over the next six months, there will be a pretty strong appetite for the stock.”

Black Dragon is waiting on additional results from a drilling program it undertook between January and May. It expects to have the remaining results in the next four to five weeks.

Drilling was aimed at proving the deposit was open at depth and to the northwest and Mr Cronin says he is fairly confident the program has achieved that.

“Once we’ve got those results confirmed, we’ll put out a new resource estimate and I’m expecting to see a reasonable increase in resources,” he said.