COVID concerns hurt WMG debut

WESTERN Mines Group may have attracted some ‘name’ investors to its initial public offering, but the company’s selected listing date unfortunately coincided with surging COVID-19 infections globally, half of Australia’s population under lockdown, and concerns about a delayed economic recovery.
COVID concerns hurt WMG debut COVID concerns hurt WMG debut COVID concerns hurt WMG debut COVID concerns hurt WMG debut COVID concerns hurt WMG debut

Midas has a Yilgarn focus

Haydn Black

Reporter

The Dr Caedmon Marriott-led WMG successfully raised A$5.5 million at 20c, and is looking beyond its day one jitters towards ramping up exploration of its gold and nickel sulphide-focused exploration projects in the Eastern Goldfields region of Western Australia.
 
The oversubscribed IPO closed early, and delivered WMG a tight capital structure with just 20 entities owning 67% of the stock, and an enterprise value of just $3.3 million.
 
Among the backers were rich-lister and coal investor Brian Flannery's family office, Ilwella, which is one of the largest shareholders at 6.35%, high-profile junior resources investor Stephen Copulos, and investment fund L39 Capital.
 
WMG's lead project is Mulga Tank, which is prospective for nickel-copper-platinum group elements project, and centres on a major dunite intrusive within the under-explored Minigwal Greenstone Belt.
 
A high-resolution ground gravity survey was completed last month, and a moving loop electromagnetic survey is scheduled to commence later this month to define drill targets.
 
Previous work by BHP and Impact Minerals shows significant evidence for a working sulphide mineral system
 
WMG's challenge is to define significant accumulations of sulphides under cover.
 
The company's other highest ranked projects are Melita, which is prospective for gold, copper, and base metals, and sits within the increasingly sought after Kookynie district, and the Jasper Hill gold project, south of Laverton.
 
Melita is surrounded by the Niagara, Kookynie, Orient Well-Butterfly mining centres and is sandwiched between Genesis Minerals' 1.6 million ounce Ulysses gold project and Saturn Metals' 944,000oz Apollo Hill project.
 
Recent reconnaissance site visits, geological mapping and rock chip sampling has been completed at Melita and the Rock of Ages gold project.
 
Marriott put together WMG as a Yilgarn-focused explorer, assembling a ranger of projects vended in by Bruce Legendre, Joseph Legendre, and Legend Resources for stock in the float.
 
Despite WMG's bona fides, the stock fell as low as 18c after open, closing at 19c. Just 2.2 million shares changed hands.