Will Christmas come early for investors in WA gold play Westar?
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Special Report: Investors that piled in to the Westar Resources initial public offering will be hoping for an early Christmas present when the Western Australian gold explorer lists on the ASX today.
Shares in Westar, which owns a suite of exciting exploration projects in some of WA’s most prolific goldfields, will start trading at 10.30am AEDT under the ticker code WSR.
“We saw strong demand in marketing the IPO, including from a number of institutions, and closed the offer within two weeks,” managing director Karl Jupp said.
“I believe investors recognised the quality of the assets and that the business had been priced attractively with an enterprise value of only $5 million.
“It’s great to finally get to listing day and to know that we will soon be getting on with the business of increasing that value for shareholders.”
Westar’s listing is the culmination of four years’ toil by experienced geologists and founders, Jupp, Nathan Cammerman, Nat Cull and Andrew Jones, during which their focus was “the right rocks, the right locations and the right people”.
The immediate priority for Westar will be the Gidgee South project in the Sandstone district, which was acquired from ASX-listed Rafaella Resources in an all-scrip deal earlier this year.
The company also has projects in the Mt Magnet, Southern Cross and Pilbara regions that all have the potential to deliver significant discoveries.
Jupp describes Gidgee South as “a geologist’s dream”, hence its standing in the ranks of Westar’s assets.
The project is directly along strike from the historic Birrigrin Mining Centre, hosts historical workings and dryblower heaps and features a large soil anomaly that has never been drilled.
Westar has recently completed reconnaissance drilling and flown geophysics over Gidgee South as it seeks to refine drill targets for testing early in the new year.
Like Gidgee South, the company’s projects at Mt Magnet, Winjangoo and Coolaloo, have been subject to minimal drilling and are in close proximity to several historic and operating gold mines.
Winjangoo is the most advanced of the two and will be the focus of geophysics, soil sampling and mapping before drilling gets underway in the first quarter of 2021.
Westar’s projects in the Southern Cross district, Mt Finnerty and Parker Dome, are the subject of a farm-in agreement with established gold miner Ramelius Resources.
Under the agreement, Ramelius can earn a 75% interest in each project by spending $2 million on exploration across both, with Westar free carried on its 25% interest to a decision to mine.
Drilling is expected to start at Mt Finnerty in the coming months.
Ramelius’ Edna May mill looms as a potential destination for any discovery at either project.
The final asset in the Westar portfolio is Opaline Well in the Pilbara Craton, where historic rock chip samples returned assays of up to 200 g/t gold but again only limited drilling has been conducted.
AIM-listed Greatland Gold holds three surrounding leases and has been very active in the area.
Westar anticipates undertaking some form of exploration activity on all projects within its portfolio within the first half of 2021.
This story was developed in collaboration with Westar 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.