Global Lithium Resources (ASX:GL1) has completed the listing of MB Gold (ASX:MBG) on the Australian Securities Exchange (ASX).
The gold spin out will begin trading on the ASX at 2.00pm AEDT today (6 February), after raising $9 million in its initial public offering (IPO) through the issue of 45 million shares at an offer price of $0.20 each.
Ventnor Securities acted as the sole lead manager for the IPO.
Global Lithium has received $900,000 cash and 8 million shares in MB Gold for the completion of the listing. Shares will be held in escrow for two years.
Global Lithium Managing Director Dianmin Chen says the completion of this listing highlights MB Gold’s “high-quality” assets.
“This gold focused spin-out allows Global Lithium to channel its attention and resources substantially toward the continued advancement of our world-class Manna Lithium Project,” Chen says.
“The company is well funded with $20.7 million cash in the bank toward a final investment decision within this calendar year.
“We believe this sharpened strategy is paramount to the company navigating a successful development pathway for the Manna Project, capitalising on the robust economics confirmed by our recent optimised Definitive Feasibility Study and maximising long-term value for our shareholders in a strengthening lithium market.”
MB Gold Executive Director Logan Barber says the listing is an “exciting and significant milestone” for the company and its shareholders.
“The overwhelming support for our IPO is a powerful endorsement of the quality of our Marble Bar gold Project, and the capability of our team to unlock its substantial potential,” Barber says.
“We have identified a compelling 12km trend of gold-in-soil geochemical anomalies, backed by existing positive gold drill intercepts, within an underexplored and infrastructure-rich region.
“With this successful capital raise, we are now fully funded to execute our highly focused exploration program and aim to rapidly define and grow high-quality gold resources within our portfolio.”
MB Gold is a gold explorer focused on advancing its Marble Bar Gold Project in Western Australia, located 150km from Port Hedland.
Write to Maddison Elliott at Mining.com.au
Images: MB Gold
