Stavely Minerals Launches A$6 Million Copper-Gold IPO

March 25, 2014

Key Points

 

  • 30M shares being offered at an issue price of $0.20 to raise up to $6M, plus $2M of oversubscriptions.
  • Key assets: Mt Ararat VMS copper-gold deposit plus a large-scale Cadia Valley/Northparkes-style porphyry target at Stavely.
  • Key brokers: Morgans Corporate appointed as Lead Manager; on-market ASX Book-build Facility being utilised to allocate shares to new investors.
  • Key dates: Offer closes on 23 April 2014 with ASX listing targeted for early-to-mid May.
  • Click here to download Prospectus

Perth-based Stavely Minerals Limited (Proposed ASX Code: SVY – “Stavely Minerals”) is pleased to announce that its A$6 million Initial Public Offering (IPO) opens tomorrow, with the launch of the copper-gold explorer on the ASX marking the imminent return to the public company arena of key members of the team behind the former successful WA gold miner Integra Mining.

Stavely Minerals – whose key assets include a suite of highly prospective porphyry copper, copper-gold and gold assets in Western Victoria – has appointed Morgans Corporate Limited as Lead Manager of the Offer and will also utilise the new ASX Book-build Facility to allocate shares to new investors.

The Company will be led by former Integra Mining Directors Chris Cairns and Peter Ironside, who both played a pivotal role in steering Integra through a long-term growth path (including some of the best greenfields gold discoveries seen in the Kalgoorlie region in many years) to become a 100,000oz-a-year WA gold producer, before crystallising value for shareholders through the sale of Integra Mining to Silver Lake Resources in 2012.

Funds raised through the Stavely Minerals IPO will be used to progress exploration at two key copper deposits in western Victoria, the Ararat and Stavely Projects, which were acquired from ASX-listed BCD Resources NL (ASX: BCD) by Cairns, Ironside and co-director, Jennifer Murphy, in May 2013. The trio have already invested $4.7 million on acquisition costs and initial exploration activities.

The two flagship projects, Ararat and Stavely, cover an area of 193km2 in Western Victoria, and include JORC resources containing over 130,000t of copper and 18,000oz of gold. Subsequent to the acquisition, Stavely has applied for additional exploration tenure in the region and now holds some 776km2 of exploration tenements and applications. These areas are prospective for volcanogenic massive sulphide (VMS) copper-gold, porphyry copper-gold and Stawell-style gold deposits.

At the Ararat Project, the Mt Ararat Volcanogenic Massive Sulphide (VMS) deposit has a Mineral Resource of 1.2 million tonnes at 2% copper, 0.5g/t gold, 0.4% zinc and 6g/t silver. Along strike to the north of this known VMS deposit are coincident electromagnetic (EM) geophysical conductors, copper-zinc soil anomalies and noted gossans (weathered sulphides) at surface extending for 3.5km which are effectively undrilled.

Stavely Minerals is proposing to undertake a programme comprising 24 drill-holes (each around 200m) followed by down-hole geophysics (EM) to identify deep conductors, and then complete a follow-up programme of diamond drill holes to test those conductors.

Also at the Ararat Project, the Langi Logan gold prospect is considered a possible analogy of the Stawell Gold Mine some 35km to the north. The modern Stawell Gold Mine has been in continuous operation for nearly 30 years and has produced over 2Moz of gold. Previous exploration at Langi Logan has intersected 2m at 9.2g/t gold in RC drilling hosted in Stawell-style sulphidic sediments (Mine Sequence) but was not followed up. Stavely plans several diamond drill holes to properly test this opportunity.

The Stavely Project is located within the Mount Stavely Volcanic Complex – considered to be a northern extension of the well-known Mt Read Volcanic Belt in Tasmania which also hosts the Mt Lyell, Rosebery and Henty deposits.

At the Stavely Project, a significant body of evidence accumulated by Stavely Minerals over the past year points to the potential for a Tier-1 Cadia Valley (Newcrest) or Northparkes-style copper-gold porphyry system at depth below a Mineral Resource of 28 million tonnes at 0.4% copper in a chalcocite-enriched supergene blanket. This evidence includes:

  •  several programmes of geophysics (gravity, EM and IP);
  • expert analysis of alteration mineralogy analysis (HyLogger and PIMA);
  • full re-logging of all available drill core by noted porphyry experts; and
  • recent sulphur isotope analyses by Geoscience Australia.

Stavely Minerals plans to drill four 700m and two 500m deep diamond drill holes to test for porphyry-style copper-gold mineralisation at the Thursday’s Gossan and Junction prospects. Several other porphyry and VMS exploration targets will also be progressed towards a drill-ready status.

The IPO is seeking to raise $6 million through the issue of up to 30,000,000 Shares at an issue price of $0.20 per Share. Oversubscriptions of up to a further 10,000,000 Shares at an issue price of $0.20 per Share to raise up to a further $2,000,000 may be accepted. The offer is expected to close on 23 April 2014, with Stavely Minerals expected to commence trading on the ASX on 7 May 2014. The Stavely Minerals Limited Prospectus is available for download from www.stavely.com.au.

The Company will use the on-market ASX Bookbuild Facility to allocate Shares to new investors under the Prospectus, and any broker may lodge a bid for Shares via the ASX Bookbuild Facility on behalf of any eligible applicant. By using the ASX Bookbuild Facility, the Company aims to provide greater accessibility and transparency to investors.

Stavely Minerals Managing Director Chris Cairns said the Company was set to hit the ground running immediately with drilling at Stavely and Ararat to commence on completion of the capital raising and ASX listing.

“We have already generated a number of very exciting drill-ready targets at both the Stavely and Ararat Projects, and shareholders can expect a very active exploration schedule once we are underway,” he said. “This is an exciting time for exploration in the Western Districts of Victoria and we are looking forward to creating value for our shareholders through a diligent, focused and systematic exploration campaign.”

Important Notice: The offer of the securities in Stavely Minerals Limited is made in a Prospectus dated 17 March 2014. Anyone wishing to acquire the securities will need to complete the application form accompanying the Prospectus. This release does not constitute a solicitation to acquire securities in Stavely Minerals Limited. Full details and JORC Code compliant reporting of Exploration Results and Mineral Resources are included in the Stavely Minerals Limited Prospectus.