IPO Analysis - Miramar Resources Limited M2R

From the prospectus , presentation and media articles

https://*********.com.au/miramar-resources-closes-oversubscribed-ipo-after-24hrs/

https://unauthorised investment advice/ipo-watch/ipo-watch-will-new-gold-float-miramar-resources-be-doray-2-0/

https://www.copyright link/street-talk/gold-play-miramar-resources-taps-shaws-for-float-20200831-p55qtl

https://www.miramarresources.com.au/



Market Capitalisation $11.3M

Available Cash $7.3M

Enterprise Value $4.0M

Shares on Issues 56,310,100

Escrow Shares 13 M

From 16M existing shares ( 9 mil existing shares + 7 mil Vendor shares ) 13 Mi shares are escrowed .. Which Means only 3 M shares are issued under 20c price and not escrowed ( Suggesting a tight register).

Miramar Resources

WA-focussed exploration company

Eastern Goldfields projects with potential for new gold discoveries in proximity to existing operations

▪ Gidji JV (80%)

▪ Glandore

▪ RandallsAdditional discovery opportunities in the Murchison and Gascoyne regions



Gidji JV :

▪ Strategic landholding 15km N of Kalgoorlie

▪ Several walk-up drill targets including:
▪ Potential extension to 314koz “Runway” deposit*
▪ Dilational jog within Boorara Shear
▪ Numerous shallow aircore/RC results:

• 2m @ 6.06g/t Au
• 3m @ 3.58g/t Au
• 1m @ 2.30g/t Au
• 9m @ 1.25g/t Au
• 4m @ 0.82g/t Au
▪ Excellent access via Goldfields Highway
▪ Close proximity to existing infrastructure

8-Mile Dam Thick +/- high-grade drill intersections within 314koz “Runway” deposit immediately south of tenement boundary

Immediately south of the Gidji project lies the Runway deposit (approximately 300,000 ounces of contained
gold) where Kalgoorlie Consolidated Gold Mines (KCGM) has identified significant mineralisation

KCGM reported wide low grade intersections within the deposit including

281m @ 1.03 g/t gold
229m @ 1.64 g/t gold
76 m @ 1.39 g/t gold
28m @ 2.17 g/t gold
13m @ 1.52 g/t gold
1m @ 17.4 g/t gold
1m @ 16.4 g/t gold

Drilling targets are being identified and RC drilling will start soon after IPO process is completed

Glandore

▪ Widespread gold anomalism related to dolerite/**bro intruded by granite

▪ Limited deep drilling

▪ Eastern target – gold mineralisation defined over at least 2km

▪ 8m @ 22.5g/t Au
▪ 4.1m @ 3.12g/t Au
▪ 5m @ 1.76g/t Au
▪ Remains open to south

▪ Western Target - untested for >2km

▪ 9m @ 1.85g/t Au
▪ 4m @ 1.25g/t Au
▪ 4m @ 1.46g/t Au
▪ and 1m @ 1.26g/t Au

Randalls

▪ Exploration Licence application adjacent to Silver Lake Resources’ Maxwells/Cockeyed Bob gold operations

▪ Minimal drill testing/sampling of folded BIF within Miramar project area

▪ High grade rock chips along strike at Pryde and Logan prospects

▪ Recent gold discoveries at Farr-Jones highlight potential for additional gold discoveries in BIF and/or black shales

▪ Excellent access via Transline road and within trucking distance of several mills

Murchison Projects

▪ Three projects covering under-explored greenstone belts

▪ Lang Well – multiple large untested auger anomalies and high-grade rock

▪ Lakeside – untested 8km long auger anomaly in concealed greenstone belt

▪ Garden Gully – strategic landholding in Abbotts Greenstone Belt

▪ Well located with respect to existing gold operations and processing facilities










Management

Allan Kelly (Executive Chairman)
Geologist/Manager with over 25 years experience in mineral exploration, development and production in Australia and North America

Founding MD, Doray Minerals Limited (2009-2016) Most successful IPO of 2010

Doray was bought by Silver Lake in April last year, in a deal that valued it at about $160 million.
Gold Mining Journal “Explorer of the Year” - 2011
Craig Oliver Award and “Australian Mine of the Year” – 2015
Funded and built two new WA gold mines within 3 years (Andy Well/Deflector)
AMEC “Prospector” Award - 2014 (Andy Well gold discovery)

Marion Bush (Technical Director)

Geologist with 25+ years management, directorship and marketing experience within the UK, Australia, Africa, and South America. MSc, Royal School of Mines
Former CEO, Cassidy Gold Corp, West African gold explorer/developer (2012-16)
Former Mining Analyst and Independent Mining/Communications Consultant

Terry Gadenne (Non-Exec. Director)
Helicopter pilot and former Army and Navy Officer with management experience in the aviation, agriculture and mining technical services industries
Former MD of coal mining services company Mining Logic Limited (Qld)
AICD graduate and management degree from the University of Western Sydney
Board positions with various not-for-profit organisations

Conclusion :

Miramar got right mix of Brownfield and Greenfield Australian exploration assets and It is priced at extremely cheap valuation of only 4 Mil EV . They couldn't have planned this IPO in better times when price of gold is high and expected to go even higher with the volatility in market conditions. It is hard to find quality shells under 10 M EV and Miramar got drill ready 2 assets which are soon to be drilled post IPO listing. They would have priced this IPO at 10 M EV and they would have still easily raised 8 mil and SP would have still went higher !


Also to add , Broker behind this IPO are the same broker who listed BC8 at 20c sp 75c and high of $ 1 .Also the same broker house was behind SPX Penny West vend which was later merged with RMS for multi million dollars

Due to its extremely cheap pricing , I am expecting it to list around 40c to 50c and with the drilling related news it will march higher and can settle around 70c to $ 1 end of calendar year 2020

It is still an exploration gamble but knowing the pedigree of the management and solid grounds , IMO it got a fair probability of becoming a medium to long term winner

I have a reasonable position in this IPO but I was scaled back heavily due to the strong demand

I am planning to add more into my existing holding ( Subject to share price )

ALL IMO

DYOR

GLTAH