PVW Resources Seeking To Raise Capital ($5 Mn To $7 Mn) Through IPO

PVW Resources NL (Proposed ASX Code: PVW) is an Australian mining and exploration company which was incorporated on February 1, 2018, in the interest of acquisition and obtain mineral rights in Western Australia. The company has three subsidiaries which are, PVW Tanami West Pty Ltd, PVW Mt Clifford Pty Ltd, PVW Gordon Sirdar Pty Ltd. to operate its three major projects in Tanami West Australia, Mount Clifford, Gordon Sirdar project. It has interest in 19 granted tenements and striving hard to get a grant of 12 additional tenements to increase its project holdings.

On 31 October 2018, the company lodged a Prospectus with the ASIC to raise a minimum capital of $5 Mn by issuing 25 Mn shares at an issue price of $0.20 per share, with the ability to offer up to a further 10 Mn shares, for a maximum raising of up to $7,000,000. Opening date of the Offer was 8 November 2018 and the closing date was 23 November 2018 which has been revised to 18 January 2019. The primary purpose of the Offer is to provide funds to undertake a systematic exploration program on the Company’s Projects, aimed at the discovery of economic mineral deposits. 

The company holds the land package within Kalgoorlie, Tanami, and Leonora regions of Western Australia. Mount Clifford project comprises of two granted exploration licence; six granted prospecting licenses with a total area of 126 km square and two granted mining leases. It is well positioned on the boundary between the Kurnalpi Terranes and the Kalgoorlie, both of them holds significant gold deposits. For Tanami West project, the company has entered into a joint venture agreement with Orion Metals Ltd. and Rich Resources Investments Pty Ltd. It plans to continue exploration programmes till it is undertaken to farmin tenements as per joint venture agreements. The project holds a significant amount of orogenic gold mineralization. Gordon Sirdar Project consists has all the necessary exploration licenses. There are numerous gold deposits located within Boorara Domain of the Kalgoorlie Terrane within Yilgarn Craton.

Company Promoters: Mr. Colin McCavana is the non-executive Chairman holds 5 Mn shares and 700,000 performance rights, Mr. Aaron Maurer is the MD and CEO of the company holds 2 Mn shares and 2 Mn performance rights, Mr. Mark Scolaro and Mr. Michael Griffiths are the non-executive directors of the company holding 1.25 Mn shares and 850,000 shares, respectively along with 700,000 performance right each.

Company Financials: The company posted a loss of $96,649 for the financial year 2018. Data for the fiscal year 2019 are yet to come, which would highlight the financial health of the company. As the company was recently incorporated, so it does not have any operating history.

Objects of the issue: PVW aims to raise capital to start exploration for high-grade gold at commercial capacity on the land of area 1,000 km square over three strategic assets at Gordon Sidar, Tanami and Mt. Clifford in Western Australia. It would help the company to meet its working capital requirements and further complete its acquisitions.

Use of Funds: PVW resources have existing cash reserves of $1.4 Mn (22% of the total fund), and after raising $ 5 Mn (78% of the total fund) from the issue, its total available fund would become $6.4 Mn in case of minimum subscription. In case of maximum subscription, raised fund $ 7 Mn would comprise 83% of the total available fund. In case of minimum subscription, 65% of the fund would be allocated to exploration project, 24% working capital needs and rest to the cost of offer whereas, in case of maximum subscription, 67% would be for exploration purpose, 22% working capital needs and 11% for the cost of issue.

Risk Associated: Mining and exploration are high-risk taking and speculative business. As the company is in its initial stage of exploration, it is not guaranteed that all exploration would result in mineral discoveries. Though the company has entered into four agreements for tenement acquisition which is yet to complete. Regulatory compliances such as the further grant of licenses, permits, and approvals also pose a certain risk even company has followed all the requisite norms. The company may face a little delay in transfer of tenements from the original holders. Operational risks such as technical failures and adverse weather conditions are poses certain risks.

PVW resource IPO details: An issue of 15 Mn shares in case of minimum subscription and 25 Mn shares in case of maximum-subscription. 10 Mn shares were issued to priority shareholders of Minotaur Exploration Ltd.

Source: Prospectus

PVW Resource Lead Managers: Oz Financial Australia Pty Ltd. was appointed as a corporate representative (AFR No: 000431191) of Reach Financial Group (AFSL No: 333297) as lead manager to the offer.


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