Special Report: Pathfinder Resources, the company formerly known as Winmar Resources, has opened an initial public offering (IPO) to raise between $5M- $6M. The prospectus details Pathfinder’s IPO and the company’s plans to acquire 100% of the high-grade King Tut gold and cobalt project in Argentina.

Pathfinder is seeking to issue 25 million shares at a price of $0.20 each to raise a minimum of $5 million and will have the capacity to raise up to an additional $1 million through the issue of another five million shares at the same price.

The IPO and the acquisition of King Tut are central planks in the rebirth of Winmar, which was delisted from the ASX in June after being suspended from trading for a continuous period of more than two years.

As part of the IPO, Winmar, which has this year seen a complete overhaul of its board and management team, is making 12.5 million shares available to shareholders who were invested in the company at the time it was delisted through a priority offer.

“We wanted to make sure that eligible existing shareholders were given a priority opportunity to participate and increase their shareholding in the new company,” executive chairman Shannon Green, who joined the board in March, said.

Both the priority offer and the public offer opened this morning, but the former is scheduled to close a week earlier on 15 September to give the company the opportunity to place any shares not taken up by existing shareholders.

At Pathfinder’s recent AGM, shareholders overwhelmingly voted on a number of resolutions ahead of the IPO opening including a 200:1 share consolidation, the change of name and the election of all three existing directors that retired ahead of the meeting.

Upon completion of the IPO, Pathfinder intends to apply for relisting on the Australian Securities Exchange (ASX) and provided the relisting is approved by the ASX will immediately commence an aggressive exploration program at the high-grade King Tut gold and cobalt project, which is located in one of Argentina’s best-known gold mining regions.

The tenements to be acquired by the company cover approximately 2,800 hectares in the La Rioja Province and include the historic King Tut mine, which the historic records indicate produced gold and cobalt at high grades from the underground workings.

Samples collected from the King Tut project area in 2018 and 2019 confirmed the presence of very high grades, with assays returning up to 37.03 g/t gold and 2.56% cobalt from mineralised veins and stockpiles.

As consideration for the asset, Winmar will issue the vendors with 5.5 million shares (on a post-consolidation basis) at the time of the IPO.

They will also receive seven million performance shares vesting on the achievement of two separate exploration milestones and be granted a net smelter royalty on the first 500,000 ounces of production from King Tut.

In determining the consideration to be paid, Green said the asset was treated as a pure gold play with shareholders getting exposure to the cobalt effectively for free.

Along with progressing exploration at King Tut, Pathfinder has expressed an intention to consider further acquisitions “with a view to growing the company and creating further value for shareholders”.

According to the indicative timetable published in the prospectus, Pathfinder is expected to commence trading on the ASX in mid-October under the ticker code PF1.

This story was developed in collaboration with Pathfinder Resources, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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