Midas Minerals proposes to raise A$6.0 million at A$0.20 per share by way of an initial public offering (“IPO” and listing on the ASX through the issue of 30.0 million new fully paid ordinary shares (“New Shares”.
Cornerstone support of A$4.5m has been indicated
The Prospectus Offer is now open and the balance of $1.5m is available to retail investors (along with s708 investors).
COMPANY OVERVIEW:
● Midas is an exploration company with a portfolio of gold and nickel-copper-PGE assets located in Western Australia. Midas has three projects in the Yilgarn Craton near Kalgoorlie with walk-up drill targets prospective for gold and Ni-Cu-PGE mineralisation adjacent to existing mining operations and infrastructure.
● The Company’s projects have had either prior exploration success (Weebo and Challa) or were a historical gold producer (Sunset Gold). These projects never received any follow up drilling or exploration despite their historical success as they were held by a private owner. The projects collectively cover approximately 1,000km2 of highly prospective tenure and are located within close proximity to existing processing facilities and infrastructure.
● Gold is the principal target for the projects, however the Weebo project is prospective for nickel, and the Challa project has demonstrated potential for platinoids, copper, nickel, base metals, silver and lithium.
Weebo Gold Project – Overview
● Active and historic gold mines located nearby the Company’s tenements include Thunderbox to the South, Bronzewing-Orelia, and Mt McClure to the north and Darlot-Centenary to the east.
● Significant prior RAB drill holes and scattered RC holes remain to be followed up, little work since recovery of gold price in 2006. Results include but are not limited to:
▪ 4m at 29.9 g/t Au;
▪ 16m at 2.8 g/t Au incl. 1m at 43.6 g/t Au;
▪ 34m at 0.80 g/t Au, incl. 10m 1.46 g/t Au; and
▪ 23m at 0.97 g/t Au, incl. 12m at 1.21 g/t Au.
Weebo Gold Project – Exploration Strategy
● Three drill ready targets with numerous anomalous to significant RAB/aircore intercepts. Diamond drilling is recommended to establish orientation of mineralised structures. Geophysics (surface or down hole) will be used to help define targets. Work has commenced to infill and compile prior magnetics, gravity, and IP.
● The aim is to establish and maintain a portfolio of advanced drill targets with some of these advancing to resource definition drilling. Challa Gold & Nickel-Copper-PGE – Overview
● Two exploration licenses (EL) and three EL applications totalling 860km2 which cover a large portion of the Windimurra Igneous Complex east of Mt Magnet containing Australia’s largest layered ultramafic-mafic intrusion.
● Mt Magnet East has limited historical production but produced high grade gold over the last 40 years, totalling 6,328oz Au from 6,000 tonnes.
● Limited historical exploration was prospective for:
▪ Gold - Shear zones under transported cover;
▪ PGE - Anomalous mineralisation discovered over large area, limited prior work favourable geological setting;
▪ Ni-Cu - Complex known for Ni-Cu sulphide accumulations;
▪ Base Metals - Strong Pb, Zn, Cu, Ag, Sn, Au mineralisation from very limited work, VMS and hydrothermal targets; and
▪ Lithium - LCT pegmatites located, similar setting to Kathleen Valley, essentially no prior exploration.
● Windimurra layered intrusive complex is one of the largest in the World and >500 times larger (by volume) than the Julimar complex.
Challa Gold & Nickel-Copper-PGE – Exploration Strategy
● Midas will initially focus their exploration on the known areas at Challa prospective for gold-copper and PGE associated with disseminated sulphides.
● Select geochemical and geophysical surveys will be used to identify priority drill targets which Midas will use modern exploration techniques to further define mineralisation.
Sunset Gold – Overview & Exploration Strategy
● The Sunset Gold project was a historical gold mine dating back to 1897 where it produced 690oz of gold from 650 tonnes until it was decommissioned in 1906. Since then, the area has not seen any modern exploration or development and is now drill ready.
CAPITAL STRUCTURE:
Existing securities on issue 33,977,134 A$2,500,000
New Shares issued under IPO 30,000,000 A$6,000,000
Securities on issue post offer 63,977,134 -
Market capitalisation post offer (@ A$0.20) A$12,595,427 A$8,500,000
Enterprise Value (before IPO costs) A$4,100,000
and listing on the ASX through the issue of 30.0 million new fully paid ordinary shares (“New Shares”
