Kingwest Resources (ASX: KWR) has muscled its way onto the ASX after completing an oversubscribed IPO to begin exploring for multiple commodities across the Crawford and Emperor projects in Western Australia.
Under the offer, Kingwest raised $5 million via the issue of 25 million shares at $0.20 each.
The company started its first day of trade on the ASX at $0.195 before falling to $0.18 by early afternoon – 10% below its offer price.
Kingwest’s primary assets include nine granted exploration licences, three prospecting permits, one mining licence and three exploration permit applications, with the combined tenements totalling 935.77 square kilometres in WA between Leonora, Laverton and Leinster.
The tenements include the 67.68sq km Emperor project and are 250m from the same geological structure that hosts ASX-hopeful Coolgardie Minerals’ Endeavor prospect which has yielded bonanza gold grades.
According to Kingwest, Endeavour has previously given up a bonanza grade of 4m at 50.3 grams per tonne from 43m, including a 1m interval grading 158g/t from 43m.
Other notable gold intercepts are 7m at 27.1g/t gold, including 1m at 159g/t gold form 46m, and 4m at 23.2g/t gold with 1m grading 81.8g/t gold from 28m.
In addition to gold, the tenements are believed prospective for other precious metals, as well as nickel, copper and cobalt.
Meanwhile, a maiden mineral resource of 3.34 million tonnes grading 0.96 grams per tonne for 104,000 ounces of contained gold has been confirmed at the Crawford project which is on the granted mining licence.
Kingwest plans to update and add to this resource by systematically exploring the tenements for gold, copper, cobalt and other mineralisation.
The company also pointed out its central tenements are within 100km of six gold mills, with half of those only 50km away.
Kingwest chief executive officer Stephen Woodham said the company hoped to begin drilling within the next four weeks.
“We will also be flying an airmag over the tenement looking for magnetic rocks, which will help identify areas of interest which have not been identified before,” Mr Woodham said.
However, Mr Woodham noted the company had already firmed up “significant” drill targets, with the drill rig and airmag survey to begin at the same time and operate concurrently.
Joining Mr Woodham on Kingwest’s board are non-executive chairman Peter Bennetto and non-executive director Steve Brockhurst.
The trio holds 70 years’ combined experience in mining, exploration, corporate advisory, banking and finance.