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A new precious and base metals explorer is making its way to the ASX with the launch of a $4.5 million initial public offering.

XS Resources is aiming to light up the boards on November 29 under the ticker “XS1” once it has completed its offer of 22.5 million shares at 20c to raise the cash.

On listing, the junior explorer will have a market cap of just under $7 million and cash in the bank amounting to $4.9 million.

XS Resources is acquiring two exploration licences, known as the “Halls Peak project”, covering 84 sq km in northern New South Wales.

High-grade zinc, silver, copper and lead mineralisation occur at several prospect areas within Halls Peak, according to XS Resources.

The focus will be on the Gibsons prospect where historic and recent drilling confirmed the presence of high-grade base metals mineralisation but is largely undefined and needs further drilling to determine size and grade.

XS Resources is also acquiring 15 mining claims, collectively known as the “Spanish River project”, near the township of Baldwin in Ontario, Canada.

The company believes the project could potentially host a sulphide mineral deposit with copper as the dominant metal, possibly accompanied by other commodities such as silver, cobalt and uranium.

Around $2 million of the cash raised under the IPO will be spent on exploration at both projects in the first two years.

XS Resources says it will also consider new projects and “opportunistic acquisitions” in the resources sector.

GTT Ventures is acting as lead manager to the IPO.

Here is a link to the prospectus.