Monger Gold brings WA eastern goldfield ambitions to the ASX

Monger Gold ASX MMG IPO Western Australia eastern goldfield Mt Gibraltar
Monger Gold has raised $5 million to fund its first two years of exploration in WA’s eastern goldfields.

Torian Resources (ASX: TNR) is hoping to unlock the value of its Mt Monger and Gibraltar assets in Western Australia’s eastern goldfields by spinning off its Monger Gold (ASX: MMG) subsidiary into an ASX initial public offering (IPO).

Monger Gold has raised $5 million at $0.20 per share to fund its first two years of gold exploration in the region.

Upon listing later today, the company will have a market capitalisation of $5.6 million and an enterprise value of about $600,000.

Torian lodged the prospectus for its wholly-owned subsidiary in mid-April, appointing Barclay Wells as lead manager.

Monger non-executive chairman Peretz Schapiro, who is also an executive director of Torian, said the IPO had been “exceptionally strong”, with approximately $10 million of  demand received under the offer.

Meanwhile, Torian plans to focus its funds and resources on WA’s Leonora region including its flagship Mt Stirling gold project.

Mt Monger and Gibraltar projects

As part of its listing on the ASX, Monger has acquired an 80% stake in Torian’s Mt Monger North, Mt Monger South and Gibraltar South projects. Torian retains a 20% free-carried interest up until a bankable feasibility study of any of the projects.

The combined 37.7sq km Mt Monger North and South projects are located 45km southeast of the major WA mining town of Kalgoorlie and are adjacent to Silver Lake Resources’ (ASX: SLR) tenure which hosts its flagship Mt Monger mine (Daisy Complex).

Significant historical exploration (including drilling) at Mt Monger North has identified key gold targets with planning work underway to kick off a drilling campaign.

A systematic exploration program is also being planned for the Mt Monger South project, which has shown significant prospectivity for gold and base metals, particularly along the Goddard Shear structure.

The 15.69sq km Gibraltar South project lies 20km southwest of Coolgardie and comprises eight granted and one pending tenement. Here, recent and historical exploration programs have identified numerous attractive priority drill targets which Monger Gold said it aims to start drilling about six months after listing.

Use of funds

Monger Gold’s prospectus includes a detailed budget for the use of IPO funds, targeting an initial two-year exploration spend of $3.3 million.

In the chairman’s letter of the prospectus, Mr Schapiro said many months of planning had already gone into preparing this exploration program.

“As a result, we will be ready to hit the ground running upon listing.”

“We anticipate strong news flow over the coming months as our systematic exploration program kicks into gear. Following a systematic review of the geological data, a drilling campaign will commence as soon as possible at the Mt Monger North project,” he said.

“This is to be followed by a drilling campaign at the Gibraltar project.”

“With highly prospective drill ready gold targets, an exploration program that is sure to deliver strong news flow, a super tight capital structure, and a management team committed to delivering value for shareholders, [this] makes Monger Gold one of the most exciting junior explorers on the ASX,” Mr Schapiro added.

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