Page 10 - pd297-Sept21-mag-web

IPos

Nickel floats to the Ton rolling with 24 new

he IPO train keeps

top of new listings the local bourse between
resources floats hitting

July and August.

Rox Resources has successfully spun out its Fisher East nickel project into
new vehicle Cannon Resources via a $6 million IPO. Pictured is exploration
manager Gregor Bennett at the Musket prospect which is one of three key
targets currently subject to a 4,000m drilling programme
uch is the appetite for new listings, in- Of the three targets, the Musket prospect there one year more than it has to be.”
Svestors showed little discrimination be- is the most enticing with the first hole of the Like Cannon, Western Mines Group Ltd
tween commodity or jurisdiction with the two 4,000m programme targeting both depth timed its entry to the bourse to meet in-
dozen companies floating, encompassing and lateral extensions to the high-grade creased interest in WA nickel assets.
everything from gold in WA to lithium in Eu- mineralisation. The company – which listed on July 20
rope. “Musket is hanging together in the best following a $5.5 million IPO – centred its
In-demand commodities such as lithium, way and shows the least amount of struc- investment case on the Mulga Tank nick-
rare earths and PGMs were well-represent- tural remobilisation and the limited drilling el-copper-PGM project which sits on the
ed in the IPOs, but among the new listings to date has been ending in mineralisation,” Minigwal greenstone belt north-east of
were a few traditional exploration stories Lynn said. Kalgoorlie.
which investors were quick to latch onto. Rox discovered Fisher East in 2012 but “It’s a large intrusive with plenty of scope
Cannon Resources Ltd is one such com- in recent years found itself increasingly dis- for magmatic nickel-copper-PGM sul-
pany. Spun out of Rox Resources Ltd, Can- tracted by its Youanmi gold project. Lynn phides, so the real hot commodities at the
non raised $6 million at IPO and after listing said the quality of the project and strength moment,” Western Mines Group managing
on August 12, hit the ground running with a of the IPO market meant the spin-out of director Caedmon Marriott told Paydirt. “It
diamond rig immediately starting a 4,000m Cannon would allow the project’s value to is about the same size as the Kambalda
programme at its Fisher East nickel pro- be realised. Dome but has only ever had eight holes put
ject, about 200km north-east of Leonora in “Rox’s focus had shifted from nickel and into it.”
Western Australia. to do Fisher East justice it needed to be in Like Cannon’s Fisher East, Mulga Tank
As Cannon chief executive Steve Lynn a standalone company with a team which is was left neglected in other portfolios, most
explained to Paydirt, the company proposi- dedicated to nickel,” he said. “The expecta- recently under Impact Minerals Ltd.
tion was simple. tion of the market is that nickel is on the up- However, unlike Cannon, Western Mines
“It’s a collection of good quality, high- side, so it is a fantastic time to be exploring is not looking for immediate drilling success.
grade nickel assets located in a Tier 1 ju- and raising capital on the markets.” “We won’t just mobilise a rig straighta-
risdiction in a buoyant nickel market,” Lynn The immediate market response rein- way,” Marriott said. “We did a gravity survey
said. forced Lynn’s belief with Cannon closing at in June then a MLEM survey in July. With
While the company also has the Col- 29.5c/share on its first day of listing, a near the information we already have that will
lurabbie intrusive-style nickel project in its 50% increase on its 20c issue price. If the give us a phenomenal dataset over the pro-
portfolio, Lynn said Fisher East would take first drilling programme brings reward, that ject. From there we will come up with some
the majority of attention thanks to its ad- trend could continue. targets ready for drilling later in the year.”
vanced nature. “We are confident we’ll have more suc- The company is conscious of the mar-
“There is already a resource of more than cess,” Lynn said. “This is a fantastic asset ket’s eagerness for exploration break-
8,000t contained nickel and there are three which has been sitting there for 2.4 billion throughs from new floats and has put to-
walk-up targets begging to be drilled,” he years. It hasn’t moved, but we’re ready to gether a portfolio capable of satisfying the
said. go and develop it further and not let it be in thirst for immediate drilling success.

Page 10 SePTeMBeR 2021 aUSTRaLIa’S PaYDIRT