Stavely Minerals Limited (ASX Code: SVY — “Stavely Minerals”) is set to begin drilling at its prized Victorian copper-gold projects later this month after becoming the only junior mineral explorer to make its debut on the ASX so far this year, following a strongly supported $6 million Initial Public offering (IPO).
According to the ASX announcement by Stavely, the company will have 80.4 million shares on issue on listing, with a market capitalisation of $16 million at the 20 cent issue price.
The Perth-based junior has been successful in defying tough market conditions in the junior resource sector — closing its $6 million IPO (30 million shares at $0.20) fully subscribed.
Stavely began trading on the ASX yesterday at 12:30pm Australian Eastern Standard Time.
The offer closed on 23 April 2014 without extension, after Stavely accepted subscriptions for $6.1 million, slightly over its minimum IPO target of $6 million. The company secured over 500 new shareholders, well over the 350 minimum required for an IPO of this structure where management own between 50–75% of the listed entity.
Stavely used the ASX Book-build Facility which received total subscription to the value of $5 million. Morgans Corporate Ltd acted as Technical Lead Manager to the ASX Book-build Facility and the Company.
The completion of Stavely’s IPO and ASX listing will see it hit the ground running at its flagship Stavely and Ararat copper-gold projects in Western Victoria. The company has 3,800m of diamond drilling scheduled to commence at the Thursday’s Gossan porphyry copper-gold prospect at Stavely in late May, followed approximately two weeks later by 4,800m of RC drilling at the Mt Ararat copper-gold VMS project.
Stavely’s Managing Director, Chris Cairns, said the Company was extremely pleased with the support received from investors, including former Integra Mining shareholders.
“I believe the reasons for the success of the Stavely IPO were twofold. Firstly, there was no cheap seed stock issued, other than to the main players in the business, we felt this would eliminate the likelihood of seed stock being sold into the market immediately on listing. We understand that investors are sick and tired of seeing the value of their 20c IPO subscription stock get sold down by insiders selling cheaper seed stock — and we were determined to do our utmost to ensure that does not happen with Stavely by funding the company to IPO by ourselves,” Mr Cairns said.
“Secondly, we have come to the market with high quality, drill-ready targets and a drilling program that begins as soon as practical after listing. This stands in contrast to explorers which have to undertake preliminary exploration to define drill targets. We have already done a lot of the hard work with our own money, so we can hit the ground running.”