The way I get around that is look at what's listing on the ASX,...

The way I get around that is look at what's listing on the ASX, read the prospectus prior to and then if onmarket list it, are ready to hit the button. I suppose with these offers, if like buying shares you strike rate is 70 to 80 per cent of the time, the losers are well and truly absorbed by the winners.

SMS will be IMO a hit and miss stock with two bonuses, the options and secondly; a listing about a month later than anticipated so closer to the commencement of drilling.

Star Minerals Chief Executive Officer, Greg Almond, coments:

“We are delighted to be taking this mine-ready deposit to the next stage and looking forward to ringing the bell in early October.

“An extensive drilling campaign is planned. This campaign is likely to start before Christmas 2021. Our point of difference to other gold IPOs is we have an actual gold resource and a pathway to gold production. The market has recognised that, and it has been an important factor in the successful fund raising – investors are impressed that we are bringing a mine-ready asset to market.

“The outlook for the gold price is expected to remain high, and this IPO has capitalised on that trend.

“Initial funds will be focused on completing drilling, environmental, and engineering work in order to get Tumblegum South ready to mine. The intention is to mine the pit using a contract fleet, at an appropriate rate, and sell ore to a processing partner. The initial operation will be of low capital intensity, and that process will provide a cash influx to fund our further activities.”

The offer was priced at 20 cents a share. At Tumblegum South, there is an Inferred Resource of 600 000 t at 2.2gpt Au (42 500 oz of gold). A Mining Lease has already been granted.