Resource Base IPO opens giving investors exposure to Black Range potential
Resource Base has launched a $5.5 million IPO to explore the historic Victorian copper-gold project.
Resource Base is now taking applications for its $5.5 million IPO, which it will use to fund the acquisition and exploration of the Black Range copper-gold project in Victoria to take advantage of copper’s optimistic outlook.
The company inked a conditional agreement to acquire Black Range from Navarre Minerals (ASX: NML) in February this year.
Black Range encompasses 124 square kilometres with multiple targets that are largely untested.
According to Resource Base, Black Range is within the Mount Stavely Volcanic Complex which is believed an analogue of Tasmania’s Mt Read Volcanics which hosts Mount Lyell, Rosebery and Henty.
Candour Advisory is acting as the lead manager of the IPO, with Resource Base planning to raise between $5 million and $5.5 million via the issue of up to 27.5 million shares at $0.20 each.
At listing, which is targeted for 2 July 2021, it is estimated Resource Base will have a market capitalisation of $8.2 million.
Advancing Eclipse prospect
IPO proceeds have been largely allocated to “aggressively” explore the Eclipse prospect within Black Range, which is located along the Stavely corridor.
The prospect hosts a volcanic-hosted massive sulphide (VHMS) system, with 4km of strike firmed up to evaluate.
Resource Base plans to kick-off an aircore drilling campaign in the second half of 2021, with diamond and reverse circulation drilling expected for the first quarter of next year.
The company’s plan is to “quickly establish” an initial inferred JORC resource using existing geological data.
“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,” Resource Base stated in its prospectus.
As well as Eclipse, other prospects at Black Range include Lexington, Glenlyle and Pollockdale.
Resource Base is also considering further merger and acquisition activity “where appropriate”.
The company plans to trade under ASX ticker ‘RBX’.