TRAPROCK SEEKS FUNDS IN ASX IPO TO SEARCH HISTORIC QUEENSLAND MINES FOR GOLD
Written on the 1 December 2016
A FLEDGING exploration company with hopes of opening a gold-copper mine near Rockhampton is seeking to raise $6.5 million in an ASX IPO.
"The best place to find a gold mine is in a goldfield, and that's exactly where Traprock will be exploring with the funds raised from this IPO," says Traprock's managing director, David Jelley.
The Queensland-focused company will raise the funds through the issue of up to 32,500,000 fully paid ordinary shares at $0.20 per share.
The minimum it hopes to collect is $4.2 million through the sale of 21 million shares, and if this amount is not met, the listing will not go ahead.
It plans to put 85 per cent of the funds towards exploring and developing its various historical tenements - the flagship being at Mount Chalmers, between Rockhampton and Yeppoon.
Mount Chalmers was mined intermittently between 1898 and 1982 during which time it recovered 1.2 million tonnes (Mt) at 3.84 grams per tonne (g/t) gold, 1.99% copper and 20.8 g/t silver.
Significant high-grade gold intercepts have included 12m at 6g/t Au, 9.5m at 6g/t Au, 20m at 3.2g/t Au and 16m at 3.2g/t Au.
Traprock's other properties include the Warroo Copper Gold Project, located near Stanthorpe; the Herries Range Gold Project near Warwick; and the Kabunga Copper Gold Project near Gympie.
"We believe we can add considerable value to our asset base through an active drilling program which will upgrade the historic resources to the JORC 2012 standard," says Jelley.
"This will include a 7,000m drilling program at Mount Chalmers and 7,000m at Woods Shaft to upgrade the historic resource and 6,000m drilling at Warroo to initiate resource estimates.
"We also plan to commence mining scoping study work on Mount Chalmers, Woods Shaft and Warroo, in addition to initiating a drilling program at Herries Range across six drill-ready targets."
Jelley says that the resources have compelling grades, are near infrastructure and have the potential to be brought into production.
"We also have a number of drill-ready targets beneath past mining operations that need to be drill tested to define resources. We will be moving to speed development with the aim of quickly moving into production and capitalising on the current upturn in gold and copper prices."
The lead manager and corporate advisor of the venture is the Australian Securities Company.
Applications for shares close on 7 December. The anticipated date for commencement of trading shares on the ASX is 21 December.