Union Capital Ltd hopes to raise between $2 million and $4 million by floating its wholly owned subsidiary Gold Aura in a healthy gold market.
Gold Aura said the move was not a grass-roots exploration play like many recent listings in the gold sector.
Gold Aura has interests at Croydon and Georgetown in North Queensland and Fergusson Island in PNG with exposure to both existing resources and exploration potential.
The project areas are made up of 500 square kilometres of granted tenements in areas with long histories of substantial gold production.
No share options would be issued to Union Capital or Gold Aura directors or employees, he said.
The issue has been structured to provide immediate entry into Gold Aura through a distribution in specie of some of Union Capital's holdings, with Union Capital shareholders being entitled to top up existing holdings under the IPO.
Shareholders who take advantage of the top-up offer would receive free options on a one-to-two basis as well as one Gold Aura share from Union Capital for every five Gold Aura shares subscribed for. Deep drilling is expected to start at Fergusson Island six weeks after the Australian Stock Exchange listing. ©
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