Nickel explorer Osmond Resources has listed at a premium after raising $5m
Osmond Resources will focus on exploring for nickel across three prospects after a successful listing on the ASX.
Osmond Resources shares listed at a 10 per cent premium on Friday following the company raising $5m from investors.
The explorer is targeting nickel, gold and base metals across two projects in western South Australia and one in western Victoria.
Osmond is headed up by Andrew Shearer, a geologist who has worked as a resources analyst at PAC Partners, Phillip Capital and Austock, as well as at the SA government’s resources and energy department.
Mr Shearer said nickel exploration would be the primary focus for the company initially.
“The board is excited by recent developments in these frontier areas for gold and base metals and the potential of the Osmond’s projects,’’ he said.
“Osmond has an experienced board with extensive corporate experience and a strong track record in creating shareholder value through successful mineral exploration, project development and mergers and acquisitions.”
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Mr Shearer is also a non-executive director of Andromeda Metals, Investigator Resources and Resolution Minerals.
“Osmond was formed with the purpose of assembling a portfolio of projects predominantly located in the Gawler Craton region of South Australia and the Glenelg structural zone of western Victoria,’’ the company says in its prospectus.
“While the proximity of the projects to nearby mineral occurrences is no guarantee that they will be prospective for an economic reserve, the board is excited by recent exploration successes in these frontier areas for gold and base metals.’’
The company said recent discoveries by Western Areas in the vicinity of its Fowler Domain projects in far-west SA, while no guarantee of success, “have indicated the nickel-copper sulphide pedigree of the region’’.
On listing, the company owns a 51 per cent interest in its Yumbarra Project in SA, 51 per cent of the Sandford project in Victoria - both with rights to earn another 29 per cent - and contractual rights to acquire up to 80 per cent of the Fowler, Tallacootra and Coorabie Shear Zone projects.
Osmond expects to spend $1.1m on exploration in its first year and $1.9m the following year.
Osmond shares were changing hands at 22.5c, up from the 20c issue price, shortly after listing on Friday.
Canaccord Genuity was lead manager on the offer.
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