Oversubscribed IPO music to the ears of Mt Monger Resources as ASX listing calls
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Mt Monger Resources Ltd has closed a heavily oversubscribed IPO – another significant box ticked as the highly anticipated gold explorer moves closer to ASX listing.
Mt Monger Resources (proposed ASX:MTM) expects to list in early-to-mid-July with a focus on its namesake region southeast of Kalgoorlie in WA’s gold heartland.
It will do so with two projects on its books – the Mount Monger gold project just kilometres from Silver Lake Resources’ 1.3 million tonne per annum Randalls Mill and 5km from market darling Lefroy Exploration’s (ASX:LEX) Burns porphyry discovery, and the expansive East Laverton gold project spanning around 3000km2 near Gold Road Resources’ 6.6 million ounce Gruyere project, the 5.9Moz Tropicana gold mine and Lynas Corporation’s Mt Weld rare earths deposit.
They have clearly caught the attention of investors early, with a number of IPO applicants substantially scaled back The IPO sought to raise $5 million through the issue of 25 million shares at 20c each.
Mt Monger Resources managing director Lachlan Reynolds told Stockhead the IPO outcome was a vote of confidence in both the company and its projects.
“It’s very gratifying that there’s been such a level of interest in our exploration programs, and we think we’ve got a package of ground that’s highly prospective, so that translates into being an attractive prospect for investors,” he said.
“It certainly gives us reassurance that investors like the story, and on the flipside of that the onus will soon turn over to us to get the work underway and make the kind of discovery which will justify the confidence in the investment.”
Mt Monger Resources certainly doesn’t intend to sit on its hands once listed. Reynolds was recently in the field – an area he knows well – as the company prepares for its field operations.
Recruitment is underway for an exploration manager, and the company plans to get as active as possible once listed.
“We have full intentions of getting exploration programs underway immediately,” Reynolds said.
“We have high priority drilling targets at both Mt Monger at East Laverton, and we expect to be drilling very shortly. Pending turnaround times for assays we’ll be very keen to get those results out to market as well.
“At the same time we’ll be implementing some more regional-type exploration programs which will complement the drill targeting we’re doing.”
The early focus in terms of targets for Mt Monger Resources will be the Duchess of York prospect at the Mount Monger project, and the Seahorse target at East Laverton.
Duchess of York was previously drilled to about 60m in depth in the late 1980s and followed up by Hampton Hill Mining in the 90s.
Hampton Hill’s drilling showed a series of stacked mineralised lodes which culminated in a non-JORC compliant resource of 132,000t at 2.3 grams per tonne gold for 10,000oz announced in 2002.
The project then went quiet, until now. Mt Monger intends to carry out an RC percussion drilling program to confirm the mineralised system and historic results while testing for further extensions.
The Seahorse target at East Laverton includes a known surface gold anomaly at South Seahorse of up to 46 parts per billion gold stretching over around 1.5km of strike, only part of which has been tested by drilling.
North Seahorse hosts a magnetic anomaly which has never been tested, with aircore drilling planned.
“The main point for us from here is that we’re looking forward to getting listed, out in the field and active,” Reynolds said.
This article was developed in collaboration with Mt Monger Resources, a Stockhead advertiser at the time of publishing.