Rolek dumps IPO plans as investors prefer larger miners
Rolek Resources has given up on its plans of relisting for the time being, but still believes manganese is a good mineral to be looking for.
The company had difficulty raising the $5m cash it needed to complete its backdoor listing through the shell of Shaw River Manganese (ASX:SRR).
Managing director Ian Stuart told Stockhead that investors still prefer the big guys.
“While resources are travelling well, investors are very much sticking to the big end of town and the market for junior resources is undoubtably difficult,” he said.
So a relisting is off the cards for now.
But Rolek still plans to crack on as a private manganese explorer, starting with its initial plans of defining a resource and securing a mining licence.
“Our view on manganese remains extremely bullish, we see supply issues emanating out of South Africa where they are having trouble keeping the lights on and an election looming,” Mr Stuart said.
“Apart from strong steel demand we also see a lot of interest in electrolytic manganese, and note governmental support for Element 25 to examine the viability of using renewable energy in its production process.”