Junior minerals company Resource Base will be targeting an aggressive exploration program at the promising Black Range base metals project in northwest Victoria on completion of an initial public offering (IPO) and planned relisting on the Australian Securities Exchange.
In February, Resource Base secured a conditional right to acquire Black Range from current owner Navarre Minerals (ASX: NML).
The company is now seeking re-admission and hopes to raise a maximum $5.5 million through the issue of 27.5 million shares at $0.20 each to develop the historic project as its flagship asset.
At listing, Resource Base will have an indicative maximum market capitalisation of $10.6 million (fully diluted).
Candour Advisory has been appointed lead manager for the offer and Resource Base will re-assume the ticker code RBX on listing.
Black Range acquisition
A successful IPO will allow Resource Base to finalise the proposed acquisition of Black Range from Victoria-focused gold explorer Navarre.
In February, the companies entered into a binding agreement which will see Navarre divest the non-core asset in return for $1.52 million in Resource Base shares on listing.
A second instalment of 2.5 million shares will be issued to Navarre on the announcement of a JORC resource of 100,000 tonnes within five years; and a final 6 million share tranche will take place on delivery of a definitive feasibility study for the project.
Black Range has been wholly-owned by Navarre since 2008 and includes multiple, largely-untested targets including Eclipse, Lexington, Glenlyle and Pollockdale, over approximately 100km of Stavely Arc volcanics.
The Stavely Arc is recognised as a series of volcanic rocks deposited within a continental margin arc setting, similar to the Andes in South America and host to some of the world’s largest-known porphyry copper deposits.
Most of the exploration at Black Range to date has centred on the Eclipse prospect, with deeper drilling and specific geophysical test work focusing on a specific zone of oxidised chalcocite outcrop and a unique induced polarisation (IP) anomaly.
On completion of the acquisition, Resource Base will carry out exploration, pre-feasibility studies and bankable feasibility studies on the project to demonstrate the commercial viability of a mining operation.
At Eclipse, a supergene blanket of enriched copper (chalcocite) has developed above widespread copper-gold-zinc mineralisation.
The copper-gold volcanic-hosted massive sulphide (VHMS) system sits north of the recent Thursdays Gossan copper discovery by Stavely Minerals (ASX: SVY).
Resource Base said it will test the 4km strike potential of the defined volcanic graben to identify the primary sulphide source which could host extensions of the VHMS discovery.
Work will include geochemical sampling, airborne and ground electromagnetic programs with a view to confirming additional drill targets and new high-grade copper and gold discoveries across the tenement package.
An initial aircore drilling campaign is planned for the second half of 2021, with reverse circulation and diamond drilling proposed for the first quarter of 2022.
If all goes to plan, Resource Base will determine the potential size and scale of the entire project area and “quickly establish” an initial inferred JORC-compliant resource within six months of listing.
The first two years as a public company are also expected to comprise the evaluation of new exploration and acquisition opportunities, and the completion of studies for near-term copper and gold production.
Leading Resource Base is a highly capable team headed up by executive chairman Shannon Green.
Mr Green is an established mining executive with more than 20 years’ corporate, resource development and mining operations experience.
He is joined on the board by non-executive director Jamie Myers who is currently also an associate director of corporate at Baker Young Limited and a non-executive director of Pathfinder Resources (ASX: PF1).
John Lewis is the chief financial officer and has worked predominantly in the resource sector in Australia and overseas as a company director, chief financial officer and company secretary.
His most recent experience is chief financial officer and company secretary of ASX listed Canyon Resources Limited.
The experienced Paul Hissey will join the Resource Base board post the IPO as the Navarre nominee director.
Mr Hissey has more than 20 years’ experience within the resources and capital markets sectors and is currently chief financial officer at Navarre.
“Our board believes Black Range and the Eclipse prospect, which are located in one of Victoria’s best-known regions, potentially offer significant exploration upside and an opportunity to deliver significant value for our shareholders,” Mr Green said.
“The company will also consider further merger and acquisition activity where appropriate, with a view to growing the company and creating further value for shareholders.”