Mallee Gold’s $5m IPO to focus on WA eastern goldfields

Nine exploration projects covering gold, nickel, copper and uranium prospects....

  Nine exploration projects covering gold, nickel, copper and uranium prospects in areas of rich mineralisation between Kalgoorlie and the southern port of Esperance in Western Australia are the subject of a $5 million Initial Public Offer (IPO) and proposed ASX listing announced by Mallee Gold Corporation Ltd.Mallee Gold is offering up to 25 million shares at 20 cents each to raise up to $5 million with one free attaching option for every two shares issued with an exercise price of 20 cents and an expiry date of 30 November, 2012.The offer includes an entitlements issue of options within six months from the company’s ASX listing, on a two-for-five basis, exercisable on or before 30 November 2014 at 25 cents per option.Under the Mallee Gold prospectus lodged with the Australian Securities Investments Commission, the proposed offer is due to open on 23 November 2007 and close on 10 December 2007. The company plans to list on the ASX around 20 December 2007.Assuming full subscription under the offer, Mallee Gold will be capitalised on listing at approximately $9.5 million.The company has assembled a suite of wholly-owned tenements located between Norseman and Esperance. Mallee Gold has also entered into an agreement to farm into 70% of the Water Tank Project currently held by Royal Resources Ltd. The 1,185sqkm of exploration holdings and applications host primarily gold-based brownfields and greenfields projects along with nickel, uranium and copper prospectivity.“We aim to be an exploration company of significance in this highly promising province of southern Western Australia,” Mallee Gold’s Executive Chairman, Keith Hood, said. “The company has already employed the latest cost effective techniques to explore tenements before and during drilling and sampling operations,” Mr Hood said.“Our assets include a mining lease and mining lease application, along with various exploration and prospecting licences and applications, providing the potential for near term production with considerable exploration upside. The combination provides an excellent platform for near-term production and upside for new discoveries.“Significantly, the tenements are all located in the Archaean Norseman greenstone terrain, more commonly known as the Eastern Goldfields. This province is richly mineralised, particularly in gold and nickel and is home to a number of highly successful mines, historically and current producers.”The company’s exploration footprint covers nine projects – Water Tank, Duchess, Lady Mary South, Oscar Range, Jimberlana South, Brumby Flats, Lake Gilmore, West Grass Patch and Mount Ridley.Mr Hood said that once listed, Mallee Gold’s initial exploration focus – an approximate $1.27 million spend in the company’s first 12 months assuming full subscription - would be on data acquisition and interpretation to identify surface and rotary air blast drill targets, as little previous work had been conducted over the tenements.