Perth-based minerals junior WA1 Resources is in the process of completing a $4.5 million initial public offering (IPO) to advance exploration at its flagship West Arunta iron oxide copper gold (IOCG) project, 400 kilometres south of Halls Creek in Western Australia.
The offer is set to close on 17 December unless extended.
The largely unexplored project comprises a number of geophysical anomalies which are considered prospective for IOCG mineralisation and have been defined by detailed gravity and magnetic surveys.
They are believed to represent a series of structurally-complex geological settings surrounded by anomalous copper-gold readings from proximal historic sampling campaigns.
WA1 aims to attract a minimum subscription from Australian and UK investors of 22.5 million shares at $0.20 each to raise funds to advance the West Arunta project and has allowed room for a maximum 30 million shares for up to $6 million.
The process will give it an indicative market capitalisation of between $9 million and $10 million (depending on the amount raised) when it currently plans to hit the boards of the Australian Securities Exchange (ASX) in January.
WA-based broking firm Euroz Hartleys has been appointed lead manager for WA1’s IPO.
The ticker code ‘WA1’ will be used on listing.
Funds from the offering will also be used to explore WA1’s other assets at the greenfields Madura project in WA’s south-east (considered prospective for IOCG mineralisation) and the Hidden Valley project near Kununurra to the north, which contains a number of potential intrusive bodies along the interpreted Osmond Valley Fault and is believed to host nickel-copper-platinum group elements (PGE) sulphide mineralisation.
The projects contain a combined 295 graticular blocks covering a total area of over 900 square kilometres.
WA1 has been finalising field programs across its assets for the new year, with first pass mapping and surface geochemical sampling planned to commence when the season opens.
Exploration is expected to include drill testing of priority targets after assessing results from the early work.
The company has budgeted $1.47 million for the programs based on the minimum subscription, and $2.13 million if it reaches the maximum subscription.
Rio Tinto farm-in nearby
In March 2021, Rio Tinto (ASX: RIO) entered into a farm-in and joint venture agreement with Tali Resources Pty Ltd, the vendor of WA1’s West Arunta project.
Tali will hold between 14.3% and 16.7% of WA1 following the IPO based on the minimum and maximum subscription, respectively.
The joint venture is located approximately 60km south of WA1 and also within the West Arunta province. Pursuant to the agreement, Rio Tinto can earn a joint venture interest of 75% by spending $58.5 million.