Haranga Resources Limited (ASX:HAR) saw strong investor interest in its West African gold and uranium projects on its first day of trading on the Australian Securities Exchange.
Perth-based Haranga, which raised A$6.5 million in its oversubscribed Initial Public Offering, peaked at A$0.275 per share during day one of trading, up from its initial listing price of A$0.20. By the close of market, the stock had settled at A$0.26, with more than 2.5 million shares traded.
The company, which has mapped a two-year plan to further explore and develop its projects, holds interests in a uranium project in Senegal and a range of gold projects in Cote d’Ivoire and Burkina Faso.
This includes the Issia gold project in Cote d’Ivoire, which is located within 50km on the same geological and structural domains as Tietto Minerals’ +3Moz Abujar gold project, and the Saraya uranium project in Senegal, where uranium mineralisation has been reported in historical drilling programs.
Haranga Resources intends to advance to declaring resources for both projects in the near term.
The company s Executive Chairman, Peter Youd , said he was pleased with the first day of trading.
“The response is very encouraging, especially in light of the current instability of the global equity markets.”
Recent geological studies based on historical drilling at Saraya and historical geochemical surveys at Issia, coupled with the projects’ proximity to known mineralisation and proven resources, confirms their potential.
“This is an exciting opportunity to develop the Saraya and Issia projects, which show good prospects for early exploration success thanks to their locations, results from recent studies and historical data,” Mr Youd said.
Haranga’s prospectus was lodged with the Australian Securities and Investment Commission (ASIC) in late October 2021 and Mr Youd says institutional and broker interest has resulted in it being oversubscribed.
“The Issia Gold Project is located in a prolific gold province with key similarities to adjacent, well-defined gold deposits and is supported by good infrastructure. There has been no historical drilling at Issia.
“The project features extensive geochemical gold anomalies with high-grade potential, which Haranga intends to validate. We have already commenced an air core drilling program over these anomalies.
“Our Saraya project should be considered both an advanced-stage exploration project and large greenfield exploration project.
“On one hand we have mineralisation showing good results, partially drilled around 2010 by French government-owned Areva and relinquished due to falling uranium prices. On the other hand, we have a large exploration permit, showing high order uranium anomalies, some with preliminary testing but most left unexplored.
“There’s renewed interest in uranium with prices climbing to a near seven-year high over the past four to five months, and acknowledgement at the recent COP26 summit by numerous world leaders that nuclear power has a major role in assisting global decarbonisation efforts.
“We have negotiated with Areva’s successor company, Orano, for access to their data room in Paris. We will be reviewing this data in coming months with a view to determining the scope for outlining immediate resources and forming the basis for ongoing exploration programs.”
Mr Youd said investing in gold and uranium made smart business sense to the company as it presented optionality for shareholders.
“Analysts are pointing to the demand for uranium only increasing and the price of gold staying strong into the future, especially with the talk of increasing inflation,” he said.
For further information please visit: https://haranga.com/