Refer to http://www.adelaidenow.com.au/business/sa-business-journal/sas-musgrave-area-explorer-plans-15m-listing-on-the-australian-securities-exchange/story-e6fredel-1225962879674
ONE of the least explored areas of the state will be targeted by a new company seeking to raise up to $15 million.
Musgrave Minerals was born out of the idea to combine the Musgrave tenements of a number of companies, and list them on the Australian Securities Exchange.
Mithril Resources managing director Graham Ascough said a number of companies had Musgrave tenements which were under-utilised because they were focussed in other areas - in Mithril's case on its Huckitta copper/cobalt project near Alice Springs.
The Musgrave area in the far northwest of the state has great potential however, he says, but has been under-explored.
"Some time last year we recognised we were going to struggle to fund Mithril's Musgrave program because we'd had some success at our Huckitta project,'' he said.
Mithril approached the Independence Group, which led to the idea to bring together their tenements, along with those owned by Barrick Gold, Integra Mining, Goldsearch and Argonaut Resources.
"The vendor companies will receive equity in the new companies. Anywhere from 5 to 10 per cent.
"In the case of four of the companies (Integra, Mithril, Independence and Goldsearch) we also have the right to participate in seed capital.''
Mr Ascough said shareholders in the parent companies were likely to get pre-emptive rights in the initial public offer.
Musgrave Minerals aims to raise up to $15 million, with a minimum of $10 million.
"That's the kind of expenditure the Musgrave region really needs,'' Mr Ascough said.
"We're going to be spending in the order of $5 million a year for the first couple of years.''
The new company's geologist, Justin Gum, has experience managing the Department of Primary Industries and Resources SA's Musgrave team.
He said the area had been difficult to access because of native title issues.
Mr Gum said the area was prospective for a number of mineral systems including nickel/copper/cobalt and copper/gold.
Musgrave Minerals aims to issue a prospectus by late January with the goal of listing by the end of April.
ARE Price at posting:
14.3¢ Sentiment: Hold Disclosure: Held
