OZZ seizes the day as juniors roar back to life
OZZ Resources is typical of a burgeoning crop of WA initial public offerings in the junior resources space (reports The West Australian).
11th June 2021
Resources Rising Stars
A couple of blokes with mining pedigree seizing a window of opportunity to compile a few projects, form a company, raise some equity and join the ranks of ASX-listed explorers.
After years of weakness in the junior IPO market, positive sentiment has returned, spurred on by surging commodity prices and a bullish outlook for metals.
ASX data shows 22 resources-related floats have raised $482.3 million so far this year ahead of their listings on the local bourse.
As OZZ managing director Jonathon Lea states simply: “We decided to put together a gold company because it was a good time.”
Mr Lea and OZZ chairman Alan Lockett, pictured left and right respectively, were introduced by mutual colleagues last year and have accumulated five WA projects and raised seed capital of $350,000.
Like other resources floats in recent times, OZZ went to the market last month seeking $5m and received subscriptions for $9m after tapping Perth-based CPS Capital and Melbourne-based Cadmon Advisory as joint lead managers.
Mr Lea headed Polaris Metals before it was taken over by Mineral Resources in 2010 after the company’s discovery of the Carina iron ore deposit near Southern Cross.
Mr Lockett is a veteran of the WA junior sector, previously heading up mineral sands play Olympia Resources and gold explorer Northern Mining.
OZZ is eyeing a June 15 listing and expects to begin drilling immediately at its Maguire’s Reward project, 50km north of Cue. The project hosts a non-JORC compliant resource of 20,000oz after being drilled by BHP and Newcrest in the 80s and 90s with a best hit of 4m at 18.4 grams per tonne.
The company will also look to convert another small 10,000oz resource to JORC compliancy at its Mt Davis project. It is 5km south-east of Red 5’s King of the Hills mine and about 20km north of Leonora.
OZZ is also excited about its greenfields Rabbit Bore project, which has emerged as a nearology play after Odyssey Gold’s recent Bottle Dump gold discovery at the nearby Tuckanarra project in the Murchison area north-east of Cue.
The Petawangie project, 100km east of Geraldton, and the Wardarbie South project, 75km north-west of Meekatharra, round out the company’s exploration portfolio.
Mr Lea said OZZ would adopt a pragmatic approach to exploration and development, with an eye on toll treatment to secure quick cash-flow.
“We’re not looking at building an empire; we’re looking to maximise shareholder returns,” he said.
“You don’t always make money developing things yourself. If you can de-risk it, it makes sense.”
OZZ will have a nominal market capitalisation of $9m on listing based on 45m shares at an issue price of 20¢.
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