Far East Gold makes grand ASX entrance with $12mn IPO and six advanced stage projects
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Copper-gold explorer Far East Gold will ring the bell and hit the local share market on Monday morning under the ticker ‘FEG’ following a $12 million initial public offering at 20c a share.
The Queensland-based company will make its debut before midday on Monday in a virtual bell ceremony with some big names in attendance.
Among them include Indonesian Ambassador to Australia Dr Wiswo Pramono, Senior Trade and Investment Commissioner for Indonesia Sally Deane, Queensland Government’s Trade and Investment Commissioner for Indonesia Ben Giles and Indonesian Government’s Director General of Mines and Energy (ESDM) Dr Ridwan Djamaluddin.
Far East Gold (ASX:FEG) holds six advanced stage tenements across Australia and Indonesia including a 1Moz and growing gold resource at the ‘Wonogiri’ project in Indonesia as well as the Woyla Project which was previously held by Barrick Gold and Newcrest.
These major miners identified several drill targets but were never able to start due to forestry designations – an issue Far East has bested.
There’s also ‘Trenggalek’, where more than 17,700m of drilling has been carried out to date.
Back in January the explorer received ‘bonanza’ grade gold assays at Woyla, nearly doubling its strike length.
Rock samples delivered grades of up to 119 grams per tonne gold, well above the 30 g/t required to meet the bonanza grade.
At the time, FEG chairman Paul Waler said the result suggests there’s even more potential for significant gold resources to be discovered.
These factors brand the Woyla tenement as a potential Tier 1 gold project – along the lines of Newcrest’s (ASX:NCM) Gosowong project, which yielded more than six million ounces of gold,” chairman Paul Walker said.
“With the results from December’s exploration work, we have confirmed our focus on an initial drill program, which could begin as early as the first half of this year.”
FEG management team has extensive on-ground operational expertise and mining experience in the country.
Walker has 30 years’ experience in international business, capital raising, and resource projects, non-executive director Justin Werner is a 20-year mining veteran and managing director of ~$4 billion company Nickel Mines, and CEO Shane Menere is an expert in leading major projects from exploration to operation.
The leadership team holds a strong ~39% skin-in-the-game leading in to the IPO – with the company having secured rights to 80-100% economic interest in the projects.
FEG also has earlier stage projects in Australia at Hill 212, Blue Grass Creek and Mount Clark West in the highly prospective Drummond Basin and Connors Arc regions in Queensland, proven ground for the discovery of epithermal and intrusive related gold systems.
The Drummond Basin and Connors arc regions are well established locations for gold exploration and operation in the state with Drummond Basin having historically produced more than 4.5mn ounces of gold and a total known gold endowment of 7.5mn ounces.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.