IPO Watch: De Grey’s Lill enjoys good first day with nickel float Nimy Resources
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Investors in Simon Lill-chaired Nimy Resources (ASX:NIM) will be hoping the newly-floated explorer will be able to replicate the success of his gold play De Grey Mining (ASX:DEG) in the nickel space.
Nimy was up 7.5% on its 20c offer price on its first day of trade Monday, closing at 21.5c following its successful IPO which pulled in around $6.5 million before costs.
The company is a single project explorer, focused on the Mons nickel project in Western Australia, comprising six exploration licences and six applications over 1761km2 of ground.
Lill’s role as non-executive chairman will be sure to pique the interest of investors who have seen De Grey’s share price increase 40 times over since making the 6.8Moz Hemi gold discovery in early 2020.
Nimy’s board also includes executive director Luke Hampson, a resources executive whose family holds ~26% of the listed firm and mining engineer Christian Price.
Price, Nimy’s managing director, was previously the CEO of gold junior Resources and Energy Group (ASX:REZ).
Located around 140km north of Southern Cross in the West Australian wheatbelt, the Mons project has seen limited exploration in recent times.
First gazetted for gold exploration in the late 1970s, a rethink took place when famous Australian mining house Western Mining Corporation explored there between 1994 and 1996.
While it was targeting gold, assays found nickel, chromium and copper bearing komatiites at surface.
A number of explorers, included Image and Troy Resources have kicked the rocks at Mons since then.
RC drilling by Nimy itself before preparing the listing back in October 2020 uncovered a large-scale, thick flow mafic/ultramafic sequence, a style of geology commonly associated with nickel mineralisation.
Geochemical and petrography analysis of the nickel, copper, magnesium oxide and chromium results confirmed a “Kambalda-style” fertile komatiite host rock pointing towards hosting high grade nickel sulphides at depth.
Nimy wants to use its IPO funds to target nickel sulphides in this “district scale” zone.
Its first step will be a moving loop eletro-magnetic survey, while the project also bears some prospectivity for gold, with the geology at Mons bearing resemblance to the ultra high grade Penny West deposit owned by Ramelius Resources (ASX:RMS).
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