CGN Resources last week started rig mobilisation with drilling to due to start at the junior exploration company’s flagship Webb Project in timing with its proposed Australian Securities Exchange (ASX) listing date on 12 October 2023.
The company has launched an initial public offering (IPO) to raise up to $10 million to fund exploration in the West Arunta region in northern Western Australia.
The IPO is now closed after the company last week received applications exceeding the maximum subscription.
The company will list on the ASX under the proposed ticker ‘CGR’ and proceeds from the IPO will be used to test its high-quality targets at its Webb Project in the West Arunta Region, which is a substantial 948km-square package of tenements.
CGN Resources believes West Arunta is the last great unexplored frontier in Australia and is ripe for discovery. By deploying modern and disciplined exploration, it aims to unlock the West Arunta as Australia’s next major exploration hot spot for copper, nickel, and critical minerals.
Increased exploration activity and results from neighbours WA1 Resources (ASX:WA1), Rio Tinto Group (ASX:RIO), IGO (ASX:IGO), and Encounter Resources (ASX:ENR) have highlighted the prospectively of the region.
The company notes the recent discovery of major metalliferous carbonatites by WA1 Resources and Encounter Resources in particular demonstrates the potential of this region to host mineralised systems.
CGN Resources is poised to list with an implied market capitalisation of $20 million on completion of the offer with an $11.8m enterprise value.
Write to Adam Orlando at Mining.com.au
Images: CGN Resources
