Top miners seek IPO opportunities as explorations show positive results


2018-03-08 09:00 GMT+8

Several potential IPOs were disclosed during the Prospectors and Developers Association of Canada (PDAC) 2018 convention. Mongolian Metals Corporation and Steppe Gold have expressed their interests in launching IPOs at the mining-focused Toronto Stock Exchange (TSX). Steppe Gold has started a talk for an IPO in the early 2017. The company intensified its exploration projects in Mongolia last year. For instance, they purchased gold exploration permit in Altan Tsagaan Ovoo with USD 9.8 million from Centerra Gold and conducted 4 thousand meter drilling in the area, as well as purchasing Uudam Khundii exploration project in Bayankhongor aimag.

Mining representatives attend PDAC 2018 convention

The company announced that it finished the first stage exploration and discovered four new gold occurrences in Bayankhongor. Simultaneously with these projects, the company attracted CAD 45 million (USD 35 million) and commenced the IPO issuance at TSX.

As for Mongolian Metals Corporation, the company purchased a total of 13 exploration licenses in the last 12 years, of which two licenses remaining in effect. It has been actively exploring a 75 thousand hectare in Bayankhongor aimag for the last 8-9 years. Last year, the company announced that it discovered large gold, copper and silver deposit. Presently, the company is raising USD 1 million for its preparation works and exploration projects, and expects to raise USD 3-5 million from the IPO at TSX.

In addition, Xanadu Mines is seeking a dual-listing at TSX. The main deposit of Xanadu is the Kharmagtai project in Umnugobi aimag, which was launched in 2015. Xanadu have cash reserves of AUD 9.1 million (USD 7 million) necessary for the continuation of this project, of which AUD 3.4 million (USD 2.6 million) is allocated for the first quarter of this year.

Mongolian Stock Exchange (MSE) has recently finalized the regulation for dual-listing. In relations to the decision, some sources reported that TSX-listed Erdene Resource Development (ERD) may be seeking an IPO at MSE; however, no official announcement has been made yet.

ERD is actively conducting exploration in Bayan Khunduu, Altan Arrow and Altan Nar deposits and announced that the exploration had high results. 


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