Deep Dive into Tartana Resources and its IPO; What investors need to know?

Are you looking to invest in an IPO offering growth potential in the Copper and Zinc sector? Let us acquaint you with an ongoing offer by a rising mineral player, Tartana Resources Limited (Proposed ASX code: TNA).

Tartana Resources is a promising player in the copper and zinc space, seeking to raise capital while providing its shareholders the exposure to exciting projects based on copper and zinc – two commodities with attractive supply and demand fundamentals including the potential new demand from electric vehicles.

Tartana Resources was incorporated on 6 August 2007 as Riverside Energy Ltd. However, in September 2017, the company redesigned its focus to become a significant copper and zinc explorer and producer.

Following this, the company acquired the Tartana Copper-Zinc Project during the third quarter of 2017. Subsequently, the company also acquired Zeehan Zinc Slag Project in early 2018.

Currently, the company is advancing rapidly with the below project pipeline:

• Tartana Copper and Zinc Project in Northern Queensland
• Zeehan Zinc Slag Project in Western Tasmania
• Mt Hess Copper- Gold Project – Queensland
• Amber Creek – Molybdenum-Tin-Tungsten Project – Queensland

Exciting Copper and Zinc projects of Tartana

The company’s flagship project, Tartana Project consists of four mining leases that contain an open pit which was the source of copper oxide ore for historical copper sulphate production using heap leach pads and a solvent extraction/crystallisation plant, still on site. Earlier exploration work on the mining leases has defined four separate exploration projects.

Previous explorers have suggested that the Tartana mineralisation is part of a larger copper porphyry system. As per SRK Consulting (Australasia) Pty Ltd, the mineralisation and alteration are consistent with the distal parts of a copper porphyry and could also be classified as a fault- and vein-hosted, intrusive-related mesothermal deposit that may be more distal than a typical porphyry-style deposit.

As per SRK, the mineralisation is strongly fault-controlled and is not constrained by the current drilling; hence, it could be part of a larger system.

The company believes that its Zeehan Zinc Slag Project, amidst the current high zinc price regime, has the potential to generate cash flows as well as provide an opportunity to later restore an old smelter site. The old Zeehan smelter site has two old slag heaps.

Tartana has completed recent drilling to provide supporting data for the estimation of an Indicated Resource of 469,000 tonnes at 13.3 % Zn, 1.7 % Pb, 53 g/t Ag and with potential indium credits. The company has been investigating a number of options for monetising this zinc, including direct sales and with processing by leaching or fuming.

The Mt Hess Copper/Gold Project and the Amber Creek Molybdenum/Tin/Tungsten project are the company’s two smaller exploration projects in Queensland, that have identified mineralisation within prospective tenements.

The company’s future modest exploration activities will be directed at determining whether there is scope to identify economic resources on these exploration tenements.

What is Tartana’s Offer?

Tartana lodged its prospectus with ASIC in June 2019 for the offer of a minimum of 20 million ordinary shares and a maximum of 30 million ordinary shares at an issue price of $0.20 each to raise a minimum of $4 million and a maximum of $6 million.

As per the Supplementary Prospectus (dated 20 September 2019), the closing date of the offer is 21 October 2019. The shares are expected to be allotted on 30 October 2019 and are expected to quote on ASX on 3 November 2019.

To know more about Tartana’s IPO, Click here

What’s in for Investors?

As per Tartana’s Executive Chairman Mr. Stephen Bartrop, an investment in the company will provide investors with exposure to some exciting copper and zinc projects which the company believe have significant potential to deliver shareholder value.

What will Tartana do after IPO?

The funds raised from Tartana’s IPO will be used to undertake drilling on the projects within the Tartana Copper and Zinc Project mining leases, in particular:

• Queen Grade Zinc Project: - Drilling to establish a coherent geological model and resource, and carry out metallurgical studies;
• Tartana Copper Sulphide Project - Drill deeper parts of the copper mineralisation to follow the mineralised zones and also test for byproduct metals that may enhance project economics such as cobalt;
• Tartana Copper Oxide Project - Drill the oxide mineralisation north of the existing open to potentially define a resource capable of supporting the restarting of Heap Leach - Solvent Extraction - Crystallisation plant to produce copper sulphate for sales to external customers;
• Valentino Project: - Step out drilling of the Valentino copper, gold, silver, cobalt mineralised areas;
• Zeehan Zinc Slag Project - Negotiations/Agreements with various potential processors/offtakers; and
• Exploration activities (mapping, costeaning and sampling) on the Mt Hess and Amber Creek projects.

As per the prospectus, the funds raised from the Offer will be applied as follows:

The exposure to some exciting copper and zinc projects is one major attractive aspect of Tartana’s IPO. If everything goes well, this IPO could turn out to be a major step forward towards the company’s mission of becoming a significant copper-zinc player.

To know more about the IPO offer click here.

Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.