Canadian silver and gold explorer BMC Minerals has filed a prospectus for a AU$100 million IPO on the Australian Securities Exchange (ASX).
BMC will issue up to 52,631,579 CHESS Depositary Interests (CDIs) over shares in the company. One CDI will represent one share in the company. The listing prices the shares within an indicative price range of AU$1.90 to AU$2.30 per CDI.
BMC plans to use the proceeds from the listing towards continued exploration, optimisation studies at the Kudz Ze Kayah project, corporate costs and general working capital.
The Kudz Ze Kayah project is BMC’s key asset, comprised of eight mineral properties in Yukon, western Canada. The 372-kilometre project hosts the ABM and Kona deposits, with total mineral resources of 27.9 million tonnes and ore reserves of 15.7 million tonnes.
BMC expects that the ABM mine would be Canada’s largest silver and zinc producer. A feasibility study has assessed that the ABM mine’s pre-tax net present value is at US$835 million, with a capital payback period of 2.2 years and initial construction costs at US$492 million.
The IPO is open to institutional investors, brokers and priority investors. BMC is not opening the offer to the general public.
The broker firm and priority offer will open on November 17. The institutional offer will close on November 21, while the broker firm offer and priority offer will close on December 1. The listing is expected to complete on December 9, and trading will start on the ASX on December 12.
