Resilience Mining Mongolia Limited, a Mongolia-focused gold and copper explorer, has filed an Initial Public Offering for A$6 million.
The company, which was incorporated in 2015 and is headquartered in Adelaide, Australia, intends to list on the ASX later this year, offering 30 million shares at A$0.20 per share.
The capital raised will be deployed on acquiring an 80% share in a portfolio of potentially world-class assets from dual-listed Kincora Copper Limited (ASX: KCC | TSX: KCC). These targets comprise the Bronze Fox Mining License, Tourmaline Hills, and the Red Well Exploration License projects, all located in Mongolia’s Southern Gobi Copper-Gold Belt.
So far, 175 holes have been drilled across the targets by Kincora, with initial drilling indicating potentially one of the largest copper and gold systems in the country – both porphyry and epithermal. This claim is supported by impressive results from one hole, which has produced 661m @ 0.35% Cu, 0.08g/t Au, 0.01% Mo from 339m, including 37m @ 0.83% Cu, 0.14g/t Au, 0.04% Mo. Out of all 175 holes, 29% had intersections of more than 1 g/t.
All three projects sit in close proximity to Rio Tinto’s world-class Oyu Tolgoi copper and gold mine, where open pit mining has been ongoing since 2011. Between 2028 and 2036, Oyu Tolgoi is expected to produce approximately 480kt Cu and 340koz Au per year.
Open pit ore reserves at Rio’s mine are 832Mt @ 0.44% Cu and underground ore reserves of 450Mt @ 1.52% Cu. Significantly, Kincora’s Red Well target is on trend from Oyu Tolgoi’s mineralized system for 26km.
Speaking about the upcoming IPO, Mark Stewart, Resilience Mining Mongolia’s executive chairman, said, “The acquisition provides Resilience shareholders and incoming shareholders with an exciting opportunity to participate in a mining exploration opportunity, targeting gold and copper-gold prospects in Mongolia that have the potential to result in new discoveries.”
Mr Stewart will host a live webinar on Thursday 2 September to discuss the upcoming capital raising, which will be followed by a Q&A session. Interested parties should click here to find out more and register for the event.