ASX IPOs: Green & Gold Minerals lists amid soaring gold and rare earth prices

The IPO market is heating up, and I'm on a mission to take a closer look at all upcoming listings, providing key data and insights ahead of their ASX debut.

Green & Gold Minerals (ASX: GG1) is a gold exploration company set to debut on Wednesday, 8 October at 11:00 am AEDT after raising $5.6 million at 20 cents per share.

The company operates two early-stage projects in Queensland: the Chillagoe Gold Project and Cosgrove Rare Earths Project.

At a glance

Chillagoe's flagship Wandoo Mining leases contain a JORC 2012 inferred mineral resource estimate of 0.9Mt at 1.1g/t gold and 13 g/t silver, equating to 32koz gold and 387koz silver. While it's a modest resource, the company aims to rapidly expand it and progress mining studies.

The broader Chillagoe area offers multiple exploration prospects, with promising high-grade rock chip samples (up to 23.3g/t gold and 3,600 g/t silver). It's also located near the Mungana mill, a 600,000 tonne per annum gravity/flotation facility last operated by Aurora Metals in 2023.

Cosgrove is an early-stage project, with recent reconnaissance rock chip sampling returning 1.44% Total Rare Earth Oxides (TREO). Heavy rare earth elements contribute 75% of the TREO, with assays showing enrichment in valuable elements including 604 ppm Dysprosium and up to 126 ppm Terbium.

The criteria

Below, we'll assess whether Green & Gold Minerals checks off the common ingredients for a successful market debut. You can read my piece about it here.

• Underwritten: No. Though IPOs of this size are almost never underwritten.

• Options: The lead manager (Harbury Advisors) has been offered 2.5 million options (assuming minimum $5m is raised). These options are exercisable at 30 cents each, within 36 months from the date of issue. This is a good sign as they have vested interest in the IPO, that's only exercisable if the share price hits 30 cents.

• Track record: In recent years, Harbury was the lead manager for Western Mines (ticker WMG listed in July 2021, debuted around the IPO offer price of 20 cents per share) and Critical Minerals Group (ticker CMG listed in September 2022, closed at 27 cents vs. 20 cents offer price).

• Near-term catalysts: The company's near-term focus is to expand and upgrade the Chillagoe Gold Project's inferred mineral resource while commencing mining studies, alongside further rock chip sampling at Cosgrove. This strategy is reflected in Managing Director Quentin Hill's incentive structure, with his short-term bonus (worth up to 15% of his $280,000 salary) predominantly tied to executing the exploration program and completing budgeted drilling meters.

• Substantial shareholders: Edward Boulton (9.5%), also Director of MEC Mining, Anthony Bellas (5.7%) current Non-Exec at State Gas (ASX: GAS) and Novonix (ASX: NVX)

• Time and place: Gold is all the rage right now, with prices up 51% year-to-date and on the verge of breaking above US$4,000. Rare earths stocks are also surging given the strategic nature of the commodity, with Lynas up 200% year-to-date.

• Investor demand: The prospectus targeted a raise of up to $7 million, but the company raised $5.6 million. While this met the $5 million minimum, it fell short of being heavily oversubscribed.

The bottom line

Overall, the IPO demonstrates some positive characteristics including lead manager options, dual exposure to gold and rare earths, and reasonable investor demand.

As the company noted on LinkedIn, gold explorers have rallied ~47% since the Green & Gold IPO was priced, providing a very strong backdrop for its debut.