Syndicated Metals set for ASX debut
New mineral exploration company, Syndicated Metals Ltd, which controls a portfolio of assets including advanced base metal projects in the Mt Isa region of Queensland, is set to make its debut on the Australian Securities Exchange in mid-December under the Code: SMD after closing its IPO early and substantially oversubscribed.Syndicated lodged a prospectus offering 24 million shares at 25 cents each to raise $6 million in early November 2007. On listing, Syndicated will have 57.35 million shares on issue with a market capitalisation of approximately $14.3 million at the IPO share issue price.The centrepiece of Syndicated’s portfolio is the advanced Kalman South molybdenum-copper-gold prospect, located around 60km southeast of Mt Isa, which is currently being explored by Kings Minerals NL. Kings has the right to earn a 51% interest in Syndicated’s 100% owned EPM 13870, which contains the southern section of the advanced Kalman Project, by spending $4 million on exploration, and up to a 70% interest by completing a final feasibility study. Kings has announced a series of positive results from its intensive drill programs at Kalman over the past twelve months and has indicated in its releases to the ASX that it intends to announce an initial mineral resource estimate for the Kalman Project before the end of 2007. Syndicated has also attracted the attention of one of the world’s largest zinc producers, Korea Zinc Company Ltd, which has taken a strategic 10.5% shareholding in the company through its subsidiary, Sun Metals Corporation Pty Ltd. In addition, Syndicated has granted Sun Metals lead and zinc concentrate off-take rights for the company’s share of any production from its tenements in North Queensland. The final terms of this agreement are yet to be finalised.Syndicated’s other interests in the Mt Isa region include the Mt Remarkable Project, located around 60km northeast of Mt Isa. This project, which comprises mostly contiguous tenements covering over 900sqkm, is prospective for copper, copper-gold and sediment hosted lead-zinc-silver style mineralisation and contains some outstanding targets including the Barbara, Mt Margaret and Mt Hutchinson prospects.