Tao Commodities jumps hurdles to get to the ASX
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Base and precious metals explorer Tao Commodities appears to be back on track with its initial public offering after encountering a series of regulatory red lights.
Perth-based Tao has raised its minimum subscription amount from $4.6 million to $4.75 million after the corporate watchdog raised concerns over it meeting certain listing requirements.
Tao, which started the process to list back in September, has so far received 374 applications, raising just over $4.6 million at an issue price of 20c.
Under its second replacement prospectus, the company hopes to raise the balance by January 1 ahead of an anticipated January 22 listing.
Tao, which currently has no existing cash reserves, is acquiring Calatos Pty Ltd — the sole owner of the Milford zinc-gold project, a package of 100 mining rights, in Utah in the US.
The project lies to the south of Rio Tinto’s massive Bingham Canyon copper mine, which produces over 300,000 tons of copper and 400,000 ounces of gold every year and has so far produced 19 million tonnes of copper.
The company estimates it will have about $4.2 million in cash after it debuts on the Australian bourse to cover the $70,000 acquisition cost, exploration activities and the review of further potential acquisitions.
Post-listing Tao plans to undertake further exploration, including drilling, at the Milford project — focusing on the Silver Bear and Captain Jack prospects.
Anomalous gold, zinc, silver and lead mineralisation occur at several prospect areas, according to Tao.