Copper-gold and base metals explorer Mogul Resources has launched a $7.5 million initial public offering to fund the development of its extensive portfolio of Indian resources projects.
West Perth-based Mogul said today it was aiming to list on the Australian Securities Exchange in October, which would allow it to launch exploration and drilling campaigns at its three flagship projects in India.
The company lodged a prospectus with the ASX last week, for the offer of up to 37.5 million shares at $0.20 per share.
The offer will open on July 29 and close September 30.
On completion of the IPO, Mogul would have 57.2 million shares on issue with a market capitalisation of $11.4 million.
The company said it has assembled three key projects in India, its Rajasthan copper-gold and lead-zinc tenements, Kartnaka gold-base metals development, and Andrha Pradesh base metals project, all of which are considered to be highly prospective.
Mogul managing director Hajrinder Kehal said operating in India offered strategic advantages, including low operating costs and high availability of drilling rigs.
“India has very favourable geology with Archaean greenstone belts similar to the Yilgarn and Proterozoic terrains of Western Australia, combined with a rapidly growing domestic market for minerals underpinned by an economy whose growth is surpassed only by China, a large pool of skilled English speaking workers and rapidly increasing infrastructure,” Mr Kehal said.
Mr Kehal said Mogul would initially focus on exploring the Sandarla prospect within its Pali project, at Rajasthan.
The company's board of directors includes chairman Sundeep Bhandari, a major shareholder of Oilex, highly-experienced geologist Mr Kehal, Malagasy Minerals chairman Max Cozijn and exploration manager Brijendra Gahlot.
Mr Bhandari said the company was committed to taking a disciplined approach to exploration based on proven technical and commercial skills.
“Our technical personnel have had decades of experience in exploration in Australia, India and other countries and they have been instrumental in the discovery of a number of gold and base metals deposits,” Mr Bhandari said.
