OzAurum Resources raises ~$1m in oversubscribed pre-IPO funding to secure 80 per cent of two advanced gold projects in a +30-million-ounce gold corridor in Western Australia.
OzAurum Resources has raised $1m in over-subscribed pre-IPO funding to acquire 80 per cent of two advanced gold projects, Mulgabbie North and the Patricia project, in a +30-million-ounce (Moz) gold province in Kalgoorlie, Western Australia.
The portfolio of strategic gold assets sits adjacent to the Carosue Dam mine which is 100 per cent owned by Saracen Minerals Ltd (ASX:SAR), currently capitalised at over $6.5bn and 50 per cent owner of Australia’s largest mine, the Super Pit in Kalgoorlie.
The Carosue Dam mine has produced some 1.5Moz so far, and is only a stones-throw away from OzAurum’s tenements.
More specifically, Mulgabbie North covers 10km of a greenstone belt in one of the richest and most prolific gold-producing belts in Australia.
The Norseman-Wiluna greenstone belt hosts a number of notable mines including Granny Smith (+2.5Moz), Wallaby (+7Moz) and Sunrise Dam (+15Moz). The Patricia project is a high-grade gold project open at depth.
OzAurum Resources is led by experienced Kalgoorlie-based geoscientist, Andrew Pumphrey, who has traversed the district and been consolidating these strategic gold tenements over the last 30 years.
He has been appointed managing director and CEO of the company, and has retained a 20 per cent free carry in the projects through to a decision to mine.
Pumphrey has brought on former Mineral Deposits Limited managing director, Jeffrey Williams, as the executive chairman of the company, along with veteran geologist Andy Tudor and Cobre Limited (ASX:CBE) executive chairman and managing director, Martin Holland, as non-executive directors.
According to OzAurum’s latest update, the ~$1m pre-IPO funds will be spent on further exploration activities including a 1,170m reverse circulation (RC) drilling campaign, one 200m diamond hole, and go towards an IPO on the ASX targeted for early 2021.
The RC and diamond drilling program will commence mid-September with assay results to be released shortly thereafter.
The drilling will be used to confirm historical Freeport drilling results and to better understand the geometry and orientation of high-grade ore shoots.
OzAurum is confident that these results will inform the strategic plans of an extensive drilling program post-listing, designed to target possible gold mineralisation at depth and unlock the next significant gold discovery in the region.
Post-IPO, the company intends to undertake a very large drilling program, with up to 50,000m of aircore, 50,000m of RC and 20,000m of diamond drilling planned with the aim of delineating an inferred resource of more than 1 million ounces.
OzAurum expects to mandate a lead manager for an IPO in the next month.