big stake taken in csm

THIS COMPANY HAS NOW TAKEN A LARGE STAKE IN CONSOLIDATED MINERALS 8 MILLION SHARES BOUGHT.....The IPO was oversubscribed with mid-tier miner Consolidated Minerals taking a cornerstone position, investing $1 million.

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Vital Metals starts trading on ASX
October 11, 2005 - 12:21PM

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Tungsten explorer Vital Metals Ltd made a modest debut on the Australian Stock Exchange on Tuesday after the company raised $8 million from an initial public offer (IPO) to advance its flagship project in North Queensland.

The shares began trading at 22.5 cents and above the IPO price of 20 cents each before ending the day at 19 cents.

Vital metals chairman and well-known mining industry figure Bill Ryan said the strong institutional and domestic retail support for the IPO reflected the new wave of growth in the demand and price for most metals.

"We are cranking everything up as fast as we can," said Mr Ryan.

"We have been doing preparatory work but some of the slightly more expensive stuff we can't really go till we get access to the money."

The IPO was oversubscribed with mid-tier miner Consolidated Minerals taking a cornerstone position, investing $1 million.

Vital Metals' flagship Watershed project in North Queensland is the most advanced of its three projects.

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AdvertisementIt is at the pre-feasibility stage with a program of in-fill drilling, bulk sampling and metallurgical development planned as soon as possible.

It has a resource of 13.9 million tonnes containing 48,500 tonnes of tungsten trioxide, which Mr Ryan said would be confirmed with diamond drilling.

Tungsten is used in metal-cutting tools, light bulb filaments and high temperature alloys.

The other two projects are in Western Australia with drilling and evaluation planned at both.

Mr Ryan is well known for his involvement with nickel miner Titan Resources and was also president of the Association of Mining and Exploration Companies from 1995 to 2000.

© 2005 AAP
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