Strong demand expected as Resource Base copper IPO launches
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Applications have officially opened for a copper-gold exploration play which aims to have an initial JORC mineral resource on its project within six months of listing.
The Resource Base (proposed ASX:RBX) $5-$5.5 million IPO is now open as part of the company’s plans to aggressively explore and develop the Black Range project in Victoria’s highly prospective Stavely Arc region.
The IPO is led by Candour Advisory and will see a maximum 27.5 million shares issued at 20c each, giving Resource Base an indicative market capitalisation of $8.2 million and an enterprise value of $3.21 million.
It is expected the IPO will be in hot demand, and Resource Base reserved the right to close the raise early.
The proceeds will be used to explore and develop the recognised volcanic-hosted massive sulphide (VHMS) system at the Eclipse prospect at Black Range, where a supergene blanket of enriched copper has developed above copper-gold-zinc mineralisation.
It comes at a great time for copper, with the commodity hitting all-time price highs this month and long-term forecasts strong on the back of anticipated demand generated by the systems and infrastructure which will power a decarbonised world.
The asset is being acquired from Navarre Minerals (ASX:NML) in an all-scrip deal – a move taken by Navarre so it can focus on its gold interests while retaining exposure to Black Range.
Navarre has put forward its CFO Paul Hissey as a director nominee of Resource Base – more on that deal can be found here.
It’s the Eclipse prospect that has Resource Base most excited about the Black Range project.
The company intends to test the potential of a 4km strike of defined volcanic graben once listed, to identify the primary sulphide source which it believes could host extensions of the VHMS discovery.
An initial aircore drilling campaign is planned for the second half of 2021, with reverse circulation and diamond drilling proposed for Q1 of 2022.
Resource Base also plans to quickly establish an initial inferred JORC-compliant resource for the project based on existing geological data.
Helmed by executive chairman Shannon Green, the company said in its prospectus that Eclipse was a great foundation on which it planned to build.
“Our board believes Black Range and the Eclipse prospect, which are located in one of Victoria’s best-known regions, potentially offer significant exploration upside and an opportunity to deliver significant value for our shareholders,” the company stated in its prospectus.
“The company will also consider further M&A activity where appropriate, with a view to growing the company and creating further value for shareholders.”
The Stavely Arc is recognised as a series of volcanic rocks deposited within a continental margin arc setting, similar to the Andes in South America, and is host to some of the world’s largest-known porphyry copper deposits.
The Resource Base Prospectus can be accessed here.
This article was developed in collaboration with Resource Base, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.