IPO Wrap: A gold-copper explorer, OTC bond dealer, and real estate investment fund walk into a bar…
Copper and gold explorer Larvotto Resources (ASX:LRV) listed today following a $6 million IPO at $0.20 per share. The company was down 30% today, closing at $0.14.
The cash raised will be used to support exploration and development of its portfolio of projects; the Mt Isa copper project Queensland, the Eyre multi-metals project in WA and the Ohakuri gold project New Zealand.
Notably, the limited drilling undertaken at the Mt Isa project – which was acquired from Rio Tinto (ASX:RIO) and Minotaur Exploration (ASX:MEP) – confirms the presence of near surface, copper, gold and cobalt mineralisation.
Plus, the tenements south of Mt Isa acquired from Rio are adjacent and directly along strike from the current Mount Isa Mines Operation operations. The project has several active copper and gold processing plants nearby which provides the company with options for toll treatment of ore and an early path to production if required.
Managing director Ron Heeks said the IPO received strong support and was ”oversubscribed given the tremendous interest in our quality projects.”
“All of the projects have suffered from a lack of modern exploration and are still largely under-explored, especially given their excellent strategic locations,” he said.
“The company looks forward to commencing field work to enhance the potential of the projects and move towards development.”
Drill rigs and geophysics crews have been booked to expand the current exploration targets for subsequent drilling at Mt Isa.
Larvotto will aim to commence drilling the potential gold feeder zones at Ohakuri in the first quarter of 2022 when Covid-19 movement restrictions in New Zealand ease and allow site access.
A the Eyre gold, copper, nickel, PGE’s and lithium project, the company plans to test the soil geochemistry where the mineralised sequence from Liontown Resources’ (ASX:LTR) Buldonia lithium resource of 14.9MT at 0.97% Li2O and 44ppm Ta2O5 extends south into Larvotto ground.
The company provides financial advice and dealing services in the OTC bond market, funds, ADIs as well as services to Australian companies.
They IPO’d $0.65 per share and closed today 18.5% down at $0.53 per share.
Speaking with Stockhead recently, ABX managing director Bradley McCosker said the company provides simplified access to OTC corporate bond markets for a wider remit of investors, and took a key step forward in 2020 when it joined forces with integrated financial software firm IRESS.
Around 90% of orders in Australia get routed through an IRESS platform, McCosker said, and “they treat us like any other exchange. So it’s just as easy for a broker to buy bonds from us as it is to buy shares on the ASX.”
The company has also built its own trading and settlement system, which McCosker said effectively created a asset sub register for OTC products, similar similar to what CHESS (the ASX’s clearing system) was intended to do – execute settlement with an asset register and seamless transfer between counterparties.
“Our system’s functionality means investors don’t have to wait for clearing and settlement — we can settle trades immediately. That gets rid of a lot of settlement risk and credit default risk,” he said.
The money raised in the IPO will fund quicker access to capital markets and to increase the company’s shareholder base.
The fund that invests in Australian real estate assets also listed today, after riasing $128.3 million at $1.90 per share in it IPO. It eked out a 1.1% gain today, closing at $1.92.
The portfolio comprises 8 properties with a 99% occupancy held in two established unlisted property trusts:
The business model is to deliver “quality investment grade properties to private investors”.
The company believes that this type of unlisted direct commercial property investment should for part of any well diversified investment portfolio including shares, term deposits, residential property and listed REITs.