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ARM launches C$40m exploration IPO
David McKay
Posted: Mon, 07 Nov 2005
[miningmx.com] -- TEAL Exploration & Mining (TEAL), the entity holding the non-South African copper and gold exploration properties of African Rainbow Minerals (ARM), has unveiled terms of a proposed C$40m Toronto listing in which 17.8 million shares will be issued at C$2.25/share.
“We are very pleased with the acceptances and support received from global institutions,” said Andre Wilkens, CEO of ARM which will be a 66% shareholder in TEAL. “ARM is excited about this significant step in its African growth strategy,” he said.
TEAL contains two copper projects in Zambia and a copper-cobalt project in the Democratic Republic of Congo (DRC). It also holds a Namibian gold project, Otjikoto which has an inferred mineral resource of about 870,000 oz. A feasibility study will be launched on this project in 36 months.
Said Rick Menell, CEO of TEAL: “The proceeds from the IPO
(initial public offering) will be used to advance four mineral projects through feasibility and towards development, as well as exploration work to be performed on other high-priority targets.”
One of the projects is Konkola North which was owned by ARM precursor, Avmin, has an inferred mineral resource of 78.8 million tons grading 2.14% copper. However, short-term cash flow needs could be fulfilled with the early development of TEAL’s 70% owned Mwambashi copper project, another Zambian prospect that is held with Korea Zinc. It contains an indicated mineral resource of 8.6 million tons grading 2.43% copper.
An over allotment option to buy up to 2.67 million additional common shares at C$2.25 has been granted. The Toronto Stock Exchange has conditionally approved the listing of TEAL which will trade under the trading symbol of ‘TL’.
Closing of the offering is scheduled for November 15. RBC Capital Markets was the sole bookrunner and co-lead manager,
and Haywood Securities was co-lead manager to the offering, TEAL said.
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