gold ipo still hot, a$130 m sought so far.

Dear Korab share holders,

Continuing the strong performance of the gold and resource sector in the December quarter 2009, (refer to my previous post Good environments for KOR spin offs and ipos, post. Number 5231210, posted 06/04/10), it seems the gold floats are still growing strongly.

While share holders are waiting for the EGM notice for the in specie distribution of shares in the Bobrikovo Gold and Melrose Gold IPO, there are a number of new gold floats in this quarter as shown below with its capital raising amount.

After reading the summary/highlight of the Mungana IPO (below), and the Bobrikovo gold projects production and profit forecast etc (refer to my previous post 5254457, Geolsec derisk the Bobrikovo and Melrose gold posted 13/4/10), you can understand how well your Bobrikovo compared to Mungana Goldmines, one of the largest gold float in a number of years.

Mungana Goldmines (MUX) A$ 76 million
Vantage goldfield (VGO) A$ 30 million
Viking Ashanti (VKA) A$ 8 million
Hot Chili (HCH) A$ 8 million
Siburan Resource (SBU) A$ 5 million
Matrix Gold (MXD) A$ 3 to 5 million

Total capital to be raised A$ 130 million as at 21 April 2010.

The largest gold IPO this quarter is Mungana goldmines (MUX) and the link to prospectus is given below.

http://www.munganagoldmines.com.au/index.php?id=24

Further details on the above gold (and other minerals) companies and others upcoming floats, please refer to the following ASX upcoming floats link listed below.

http://www.asx.com.au/research/companies/floats/upcoming.htm

Highlights of the Mungana Goldmines (for more details, refer to KZL announcement on 16/4/10).

Retail and Institutional Offer of up to 80M shares at $0.95 per share
Kagara to retain at least a 49.0% stake in Mungana Goldmines with Guangdong
Foreign Trade Group (GFTG) becoming a cornerstone investor by subscribing for a 16% stake
Kagara shareholders to receive priority allocation in the IPO on a 1-for-16 basis
ASX listing of Mungana Goldmines (ASX: MUX) targeted for 27 May 2010

The Mungana IPO provides Kagara (ASX code: KZL) shareholders and other investors with an opportunity to participate in one of the largest and most significant gold IPOs in Australia in recent years, with a large JORC compliant resource base of gold and copper, access to established mine infrastructure, a target to commencement of development within 24 months and outstanding exploration upside.

The IPO comprises a Retail Offer which opens on 27 April and closes on 18 May and an Institutional Offer which opens on 21 May and closes on 24 May. The Retail Offer may be closed earlier without notice. Southern Cross Equities is the sole lead manager to the IPO with Macquarie Private Wealth a broker to the IPO.

After listing Mungana will have 157 million shares on issue, giving it a market capitalisation at the issue price of $149.2 million.

Munganas key assets are the Mungana and Red Dome gold deposits, located in the Chillagoe region of North Queensland, which have combined Measured, Indicated and Inferred Resources totalling 1.85 million ounces of gold, 180,000 tonnes of copper and 13 million ounces of silver.

Mungana will have access to existing mine infrastructure, including underground decline development at Mungana, on which Kagara has expended $130 million.

The proceeds of the raising will be used to undertake mining studies and a definition drilling program at the Mungana and Red Dome gold deposits culminating in a Bankable Feasibility Study (BFS) to assess the optimal development strategy for these deposits.

The Company is targeting a resource capable of sustaining production of 150,000 ounces of gold and 60,000 tonnes of copper concentrate annually.

Mungana will also have access to a strong pipeline of exploration targets that will be explored through one of the largest and most active gold exploration and development programs undertaken in Australia in recent times.

This program will involve over 100,000 metres of drilling over the next 12-18 months at a cost of approximately $30 million and will include in-fill drilling of known resources for conversion into reserves as well as geotechnical and metallurgical drilling for the BFS and exploration of a host of regional targets.

At completion of the IPO, Mungana will also make a payment up to $26 million to Kagara depending on subscription levels to reimburse historical costs incurred in the development of the Mungana Gold Project.

Kagaras Executive Chairman, Mr Kim Robinson, said the launch of the Mungana IPO marked a major milestone for the Group, bringing to fruition its strategy to realise value from its high quality gold assets in North Queensland and accelerate the development of these assets towards production within a targeted 24 month timeframe.

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As always DYOR. Different share holders have different strategies in their time horizon for investment/trading, profit/stop loss target, risk profiles, financial needs, etc. The final decision is for them to make.
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