IPO

Upcoming IPOs for the week: Gold and base metal explorers

Mon 09 May 22, 11:01am (AEST)
IPO 11 - IPO word made with building blocks
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Key Points

  • 2 IPOs this week
  • Southern Cross Gold is a Victoria-based gold explorer
  • Bellavista Resources is hopeful for several commodities including gold, uranium, silver, copper, zinc and PGEs

Every Monday, Market Index reviews the upcoming IPOs for the week.

All time is quoted in Australian Eastern Standard Time. 

The * indicates indicative data for listing date, capital raised and listing time.

Wednesday

Southern Cross Gold

Key points

  • Gold explorer

  • Raising $10m at 20c

  • Market cap circa $30m 

  • Lists at 10:30 am

  • Offer of 6.5m options to the joint Lead Managers (Baker Young and Pulse Markets)

Southern Cross Gold (ASX: SXG) is a spin-off of Mawson Gold (Toronto Exchange listed) and its Australian exploration assets. 

Southern Cross Gold is focused on its three projects in Central Victoria. 

  • Sunday Creek Project (100% ownership)

    • Advanced exploration project

    • High grade geologic results make it “one of the leading exploration discoveries to come out of Victoria in recent times” 

    • “Host identified mineralised trends and/or veins that exceed 10 km that have not been drill tested”

    • Drilling at the project is ongoing

  • Redcastle Project (70% ownership)

    • Early stage exploration project

    • Prior drilling in the area discovered “thin to moderate grades and widths of gold” across all 16 drillholes 

  • Whroo Project (option to earn up to 70%)

    • Historic production of 40,000 oz of gold at grades of more than 5 g/t

    • Intends to undertake ground-based IP survey and follow-up diamond drilling

2022-05-09 09 29 42-6232ddd36eaee22f8388cfb7 SXG - IPO Prospectus 17 March 2022
Source: Southern Cross Gold Prospectus (2022)

In addition, the company holds seven exploration prospecting licences in Queensland. As well as a 10% strategic investment in Nagambie Resources (ASX: NAG).

Thursday

Bellavista Resources 

Key points

  • Diversified metals explorer

  • Raising $6.5m at 20c

  • Market cap circa $13.5m

  • Lists at 11:00 am

  • Lead manager receives 1.95m shares

Bellavista Resources (ASX: BVR) is a WA-based diversified explorer with prospects prospective for zinc, copper, silver, gold, uranium, nickel and platinum group elements (PGEs).

The company’s project portfolio consists of: 

  • Brumby Project

    • Key focus of initial exploration activities (most of budget allocated for Brumby's)

    • Prospective for zinc, copper, silver and gold

  • Vernon Base Metal Project

    • Early stage project with limited prior exploration

    • Prospective for zinc, silver, copper, gold and palladium

  • Vernon Nickel/PGE Project

    • Project also hosts the Kiangi uranium target

  • Gorge Creek Project

    • Early stage exploration project with very little on-ground previous exploration

    • Prospective for sulphide hosted nickel, copper and PGEs

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Source: Bellavista Resources Prospectus (2022)

Listing headwinds

New listings are swimming against the tide as a bearish mood takes over the broader market.

Most of the listings from last week are underwater, including:

It looks like investors are using the debut day as a liquidity event to get out for a small profit or loss. Most of these stocks have yet to have a green day since listing.

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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