Flinders Exploration revamps IPO

THE BOURSE WHISPERER: Flinders Exploration has lined up two copper and gold mining developments, which are moving to prefeasibility study status, in South Australia and Western Australia respectively to lead an Initial Public Offering (IPO) raising up to $7 million.

The two near-term projects, situated in the southern Flinders Ranges in South Australia and Coolgardie in Western Australia’s Eastern Goldfields, already boast Inferred and/or Indicated resources.

Flinders Exploration said both hold the potential to move to maiden production as early as next year.

“Our aim is to have a drilling program underway on at least one of main targets in South Australia – our JORC compliant Copper Claim project, 265 kilometres north of Adelaide – on the actual day we list on the Australian Securities Exchange,” Flinders Exploration chairman Andrew Andrejewskis, said in a market announcement.

“We are also planning to initiate pre-feasibility studies on these two major assets – the other being the Black Cat gold project northwest of Coolgardie – on listing.”

As well as its Copper Claim copper and Black Cat gold projects, Flinders Exploration has included early exploration of a porphyry gold asset near Cowal in central New South Wales, to its enhanced copper and gold focus.

The company also retains diamond and phosphate tenements in regional South Australia that were the focus of its earlier IPO and listing agenda.

Flinders has lodged a new Supplementary Prospectus with ASIC.

The company is offering 25 million ordinary shares at 20 cents per share to raise $5 million, with allowances for additional oversubscriptions of a further $2 million, as part of a revamped IPO.

The offer, sponsored by Ascot Securities, is open to 6 October 2011, but the company directors have reserved the right to close the Offer at any time after the minimum target has been reached.

“Our goal is to establish an early revenue stream from mining projects which will in turn support the ongoing exploration and development of other major projects,” Andrejewskis said.

“We strongly believe our now flagship Copper Claim and Black Cat projects – together with our existing phosphate and diamond prospects in South Australia – provide the market with the opportunity to invest in a suite of both development and exploration projects with potential for near-term mining.

“Certainly both Copper Claim and Black Cat projects are well advanced and provide the company with the opportunity to initiate production as early as 2012, a goal that we believe gives our IPO added appeal.”