HOPGOOD GANIM advised Queensland Gold and Minerals (QGM) on its initial public offer and listing on the Australian Stock Exchange.
The company was looking to raise $3 million from the IPO, but by 2 January had raised $4 million.
Lead partner on the deal, corporate advisory partner Michael Hansell, said the oversubscription to the IPO was evidence of a continuing strong appetite for public offerings in the resource sector.
“I think the reason there has been a lot of interest in QGM is because it holds a number of tenements at various stages of maturity, from key exploration targets to projects nearing production,” he says.
“A further factor in QGM’s favour is the impressive initial exploration results generated by Oxiana under its joint venture with QGM.”
QGM said it would begin drilling immediately on one exploration project at Eveleigh in North Queensland, where drilling began on 14 January. This involves a 600 metre “reverse circulation” to test for “anomalous gold” in soils and rock chips on the Kellys End grid.
QGM was formed to explore for and develop gold and mineral resources. It has nine projects, one of which is a joint venture with explorer and producer Oxiana Limited.