IPO Radar: Rare earths, gold and lithium juniors poised to list next week

A summary and closer look at companies scheduled to list on the ASX next week.

Note: Listing dates and raise amounts are subject to change. Market cap is indicative and assumes the IPO meets the full raise amount.

VHM: Rare Earths

VHM operates the Goschen Project in Victoria, that has a substantial rare earths deposit of 413,107 tonnes plus a world-class mineral sands resource. The project is well advanced, with a March 2020 definitive feasibility study indicating a mine life of more than 20 years.

Use of proceeds: VHM said it has over $27m committed over the next 12 months, which includes land access and acquisitions, tenement expenditure, exploration programs and payments to consultants, design and engineering companies. The intent is for the IPO proceeds to fund the company through to a final investment decision for Goschen.

Next steps: A final investment decision is currently scheduled to take place in the second half of 2023. The company said it plans to implement a phased approach to developing the rare earths project.

Cool fact: To add some perspective about their rare earths deposit. Lynas produced 15,970 tonnes of rare earths in FY22.

Link to prospectus

Acusensus: AI Traffic Tech

Acusensus has created an AI-powered camera system that can identify drivers who are using their mobile phones while driving, not wearing their seatbelts, speeding, unregistered vehicles or driving vehicles of interest. The company generated $29m revenue in 2021, up from $6m in 2020.

Use of proceeds:

• Expand distracted driver program globally (currently ~94% of revenues are from Australia but the global traffic enforcement solutions market is forecast to reach US$7.6bn by 2026)

• Develop solutions to other major road safety issues such as warning systems for first responders, detection of drivers impaired by drugs or alcohol

Cool fact: Acusensus detection systems in use showed that 1-4% of drivers were illegally using their mobile phones while driving, according to the Australian Financial Review.

Gold Hydrogen: Hydrogen

Gold Hydrogen is exploring a potentially large scale hydrogen prospective in South Australia.

Use of proceeds: Management believe the IPO proceeds will cover exploration activities including land access and licence fees, permitting costs, airborne surveys and drilling activities over the next two years.

Next steps: Gold Hydrogen has identified an exploration work program comprising of five to six wells, two to three of which are located close to wells that have previously intersected a potential hydrogen accumulation.

Cool fact: The company's 7,820km² tenement is considered the largest tenure over a naturally occurring hydrogen prospective acreage in Australia.

Link to prospectus

Patagonia Lithium: Lithium

Patagonia Lithium has a 100% interest in three projects situated in Argentina's Lithium Triangle, where 40% of the world's lithium products are produced. The three projects are called: the Formentera Project, the Cilon Project and the Tomas III Project.

Use of proceeds: Patagonia has plans to allocate $1.73m (22% of IPO proceeds) for various early stage exploration activities including sampling, geophysics and mapping at the three projects. Of note, $360,000 for drilling has been allocated at Tomas III. No drilling expense has been allocated to the other two projects. Other notable expenses include: Project vendor cash payments ($3.86m) and working capital ($1.6m).

Next steps:

• Obtain samples of surface brine or brine from shallow trenches for Formentera and Cilon

• Carry out surface geophysics for all three projects

• Drilling at Tomas III (subject to the results of surface geophysics)

Cool fact: Tomas III is located close to licences held by lithium giants REMSA and Ganfeng. Lake Resources also has stakes around the Formentera and Cilon projects.

Link to prospectus