Vantage Goldfields has announced plans to raise A$30 million (R206m) through an initial public offer (IPO) to fund the expansion and development of its existing mines.
The South African gold producer and explorer plans to issue up to 75 million shares at A$0.40 a share. Its listing on the ASX in Sydney is expected to take place on May 19. In its prospectus, Vantage says the funds the IPO raises will fund three expansion projects.
Major shareholders, based on the maximum subscription of the IPO, will be Asian Investment Management Services (26 percent), Platinum Asset Management (22 percent), and Mike McChesney (6 percent).
McChesney is the president and chief executive of Vantage. He founded Vantage Eastern Goldfields, which became Vantage Goldfields.
In a letter to investors, Stephen Turner, the chairman of Vantage, says the company holds an extensive portfolio of project opportunities at various stages of appraisal.
"These include more than 20 known gold deposits which, using an approach similar to that applied to the three current projects, will be thoroughly investigated as potential mining projects using modern mining and processing methods."
The junior miner's three current projects are Lily, Barbrook and Worcester.
The three projects all fall in the area known as the Barberton Greenstone Belt.
The Lily project is an operating mine and the company has completed a bankable feasibility study to expand operations to increase production to 35 000 ounces a year from 2011 for at least 13 years.
The Barbrook project is a dormant mine where Vantage is investigating the possibility to return to production.
The Worcester project is also a dormant mine, which Vantage says will be evaluated as part of the company's future exploration and evaluation programme.
Vantage has a 74 percent interest in the Barbrook and Worcester projects and a 85 percent interest in the Lily project. The mining company is required to to reduce its interest in Lily to 74 percent by 2014.
The remaining interest in all three projects is held by Lomshiyo Investments, an empowerment partner.
The company says it is an established gold producer with an average production of 10 000 ounces a year over the last five years.
Vantage is also investigating the possible on-site smelting of gold concentrates, a project that will be fully funded by a partner, it says. The commissioning of the plant is complete and a full-scale production test is in progress.
