Greater access to IPOs through OnMarket BookBuilds

State One has partnered with OnMarket BookBuilds to provide our clients with even more investment opportunities. In addition to the exclusive capital raisings that State One undertakes and offers to our clients, you can now take advantage of offers from OnMarket. Our association with OnMarket will allow you to bid directly on IPOs and have the shares allocated straight to your holdings at State One. Through OnMarket our clients will also be able to access free research, management interviews and get notifications on upcoming IPOs.

OnMarket is Australia’s first online platform that lets all investors buy shares in IPOs free of any fees other than the cost of the shares. Since launching in October 2015 OnMarket has hosted 1 in 3 ASX IPOs, so we are obviously excited to be able to offer our clients access to this cutting-edge platform. For each offer hosted by OnMarket you get easy bidding & payment, free independent research, and a chance to 'meet the management' via exclusive video interviews. Best of all, when you invest in IPOs via OnMarket, any shares you buy can be allocated directly to your State One Stockbroking account so you can manage your portfolio without disruption.

How does it work?

We will display the list of current offers from OnMarket on our website. If you see an offer that you want to invest in then click on the Bid Now button to apply for shares. You will leave State One website and be redirected to our partner's (OnMarket) bidding platform where you will need to sign up with your Holder Identification Number (HIN). If you have already signed up then you will be taken straight to the bidding page for the selected offer.

It is important that you enter your HIN correctly when you set up your login at OnMarket. This will make for a seamless experience if you want your shares to be automatically allocated to your State One account.

Current OnMarket Offers

IPO
Materials
$0.03
Size of Offer $4.5 - $5.5 million
Minimum Bid $2,000.00
Opening Date 21/11/2019
Closing Date 14/01/2020

Update: The Lead Manager has informed us that they are extending the offer to allow strategic investors to complete their due diligence.

 

Introduction

Tesoro Resources Ltd (proposed ASX code: TSO) is an Australian gold exploration company, with interests in two gold projects located in world class mining regions in Chile. The project names are El Zorro (‘Fox’ in Spanish) and Espina (‘Spine’ in Spanish) (together, the Projects). Tesoro was established with a strategy of acquiring, exploring and developing mining projects in the Coastal Cordillera region of Chile, with a focus on gold. The Coastal Cordillera region is host to multiple world class copper (Candelaria) and gold (Maricunga) mines, has well established infrastructure, service providers and an experienced mining workforce. Tesoro via its in-country network has been able secure rights to two district scale gold projects in-line with the Company’s strategy.

Since December 2017, Tesoro has completed a sixteen hole diamond drill program at El Zorro with all holes intersecting gold mineralisation. The Company intends to rapidly advance exploration and development of El Zorro. This will include further diamond drilling, metallurgical test work,geophysical surveys and mapping programs to evaluate the wider project area. At Espina, two major epithermal style gold mineralised trends have been identified from detailed geological mapping and surface geochemical sampling, which have been completed by Tesoro. The Company is aiming to define initial drill targets for drilling during 2020.

Investment Highlights

  • Focused on Chile, a Tier 1 mining jurisdiction (6th on Fraser Institute) with outstanding infrastructure
  • Two high quality gold exploration projects with district scale footprints in the coastal Cordillera Belt Chile
  • >A$3m spent by Tesoro to date
  • Exciting discovery at flagship Project El Zorro, thick high-grade intercepts, emerging major gold deposit
  • 16 holes drilled to date with 3 x 100g/m intersections, all holes intersecting high grade gold mineralisation including;
    • ZDDH0010 - 84.30 metres @ 1.30g/t Au  - 110g/m Au
    • ZDDH0011 - 98.30 metres @ 1.58g/t Au - 155g/m Au
    • ZDDH0012 - 58.80 metres @ 1.70g/t Au - 100g/m Au
  • Strong Board and Management with significant in country expertise

Offer overview

The issuer of the prospectus is Plukka Limited (ACN 106 854 175) (ASX: PKA) (to be renamed Tesoro Resources Limited).  Tesoro Resources Limited will trade under the ticker ASX: TSO.  For more information, please refer to the Prospectus.

Tesoro Resources is looking to undertake an RTO on ASX to raise between $4.5 million and $5.5 million at an offer price of $0.03.  The company proposes to use the funds raised from the Offer to:

  • Fund El Zorro exploration and earn-in expenditure
  • Fund Espina exploration and earn-in expenditure
  • Fund project payments and partial repayment of director loan to entities associated with Geoffrey McNamara
  • To cover the costs of the offer
  • Fund corporate overheads and administration costs
  • Fund Administration costs and working capital

The Mining Projects

Tesoro holds its interests in the Projects through a Chilean subsidiary Tesoro Chile.

El Zorro Gold Project

El Zorro is an emerging district gold system.  Tesoro Chile has the right to acquire up to 80% of the El Zorro Gold Project (El Zorro), located 130km from Copiapo in Region III (Atacama) of Chile, approximately 850km north of the Chilean capital, Santiago. The project covers an area of approximately 10,500 hectares. The final 20% of the project ownership is subject to contribute or dilute conditions.

Gold mineralisation at El Zorro is associated with a suite of felsic to intermediate intrusive rocks (diorites and tonalites) which have been subject to multiple phases of faulting and brittle deformation resulting in the deposition of gold bearing fluids within the intrusive rocks.

Tesoro has undertaken considerable exploration work at the project including the drilling of 16 diamond drill holes. Tesoro’s work has also identified numerous new gold prospects within a 4km by 4km area outside of the previously identified Coquetas prospect.

El Zorro Gold Project concession area, showing identified extensions to the El Zorro Tonalite at Toro Blanco and Drone Hill

Espina Gold Project

Tesoro Chile has the right to acquire up to 100% of the Espina Gold Project (Espina), located approximately 50km south of Santiago, in the Maipo Valley, Chile. The Espina project covers an area of approximately 5,530 hectares and is within a well-known epithermal gold region 25km north of Yamana Gold’s operating Florida mine.

Tesoro is targeting epithermal style gold mineralisation which has been identified within the project area. Tesoro has undertaken considerable exploration work at the project including mapping, systematic soil sampling (over 1,000 soil samples) and processing and interpretation of aeromagnetic data. Tesoro’s work has identified two structural / fault trends which are delineated by strong geochemical anomalism, outcropping epithermal gold bearing veins and associated widespread alteration believed to indicate the presence of a large epithermal mineralising system.

Tesoro’s work has returned rock chip results from outcropping epithermal veins of up to 69.30g/t Au. Two main trends have been identified; the Infiernillo Trend and the Puertelera Trend. These two trends have a strike extent in excess of 2kms each and are coincident with Au, Ag, As, Pb, Sb and Zn soil anomalies.

Geology and major mineralised trends at Espina

 

Near Term Program and Newsflow

El Zorro ready to drill on day one and expect first drill assays from Coquetas early February 2020.  Over 1000 outcrop channel samples from El Zorro new targets ready to be assayed with results expected in January 2020.

Espina has 140 outcrop epithermal vein samples waiting to be assayed with results expected January 2020.  420 Soil samples from Espina epithermal trends waiting to be assays - results expected January 2020

Business Model

Following completion of the Offer and the Acquisition, the Company’s proposed business model will be to further explore and develop the gold targets at both the El Zorro and Espina Projects and identified mineralisation. The Company’s main objectives will be to:

  • systematically explore and seek to develop the El Zorro and Espina Projects;
  • focus on mineral exploration or resource opportunities that have the potential to deliver growth for Shareholders;
  • continue to pursue other acquisitions that have a strategic fit for the Company;
  • implement a growth strategy to seek out further exploration and acquisition opportunities in Chile; and
  • provide working capital for the Company.

The funds from the Offer, together with existing cash reserves will allow the Company to further progress this business model.

Revenue Model

The Company intends to generate income by adopting the following strategies:

  • to advance the exploration and evaluation of deposits located within the Projects (where possible) in proximity to established mining operations and infrastructure which demonstrate the ability to be developed into early production opportunities;
  • to evaluate and pursue other prospective opportunities in the resources sector in line with its strategy to develop high quality assets; and
  • use funds raised from the Offer to continue (or commence) exploration activities on the Projects aimed at the discovery of JORC Resources, in some cases based on evaluation of targets previously defined by the Company during previous exploration undertaken.

Management and Board

Tesoro Resources Limited is led by a team which has extensive experience in the mineral resources sector and significant country expertise.  These include:

John Toll (Non-Executive Chairman) BComm, CA

Mr Toll brings valuable experience as a partner of Azure Capital Limited, a leading corporate advisory firm based in Perth, Western Australia. Mr Toll has over 15 years’ experience in corporate advisory, focusing mainly on equity financing transactions across a range of industries including mining, technology, general industrials, biotech and infrastructure.

Zeffron Reeves (Proposed Managing Director) BSc (Hons) (Applied Geology), MBA, MAIG

Mr Reeves is a geologist with over 20 years’ experience in the resources sector working on mineral resource projects through all facets of development from greenfield exploration, discovery, definition and feasibility, construction, production to closure. Mr Reeves was most recently Managing Director of ASX listed Metallum Ltd which had a number of development and operational projects in Chile.

Geoffrey McNamara (Non-Executive Director) BSc (Applied Geology), AusIMM, FINSIA, AICD

Mr McNamara is a geologist with over 25 years’ experience in the resource sector, covering operational roles including Project Manager, Senior Mine Geologist and Mine Geologist for Ivanhoe Mines Ltd, LionOre Mining International Ltd and Western Mining Corporation Resources Limited.

Risks

You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. As set out in Section 10 of the prospectus, Tesoro Resources Limited is subject to a range of risks, including but not limited to exploration, tenement applications and license renewal, tenure and access, requirement for additional capital and re-quotation of shares on ASX.

 

Section 734(6) disclosure: The issuer of the securities is Plukka Limited ACN 106 854 175 (to be renamed to Tesoro Resources Limited). The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Bids over $10,000 may be scaled back more heavily. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

IPO
Software & Services
$1.85
Size of Offer $100 million
Minimum Bid $2,500.00
Opening Date 10/12/2019
Closing Date 13/12/2019

Offer closed via OnMarket  

 

This IPO is fully undrwritten. The Joint Lead Managers, Macquarie Capital (Australia) Limited and Moelis Australia Advisory Pty Ltd, have received firm commitments for the A$100 million offer size from institutional, retail and sophisticated investors. OnMarket has a limited allocation.

Introduction

Founded in 2006, Limeade, Inc. (ASX: LME) is a Washington State incorporated, leading employee experience software as a service (SaaS) provider. Through the Limeade platform and its integrated software solutions, Limeade helps organisations better care for their employees, with the goal of driving higher employee engagement and well-being, and lower employee turnover. Limeade currently has a customer base of more than 175 companies with over 2.4 million users in more than 100 countries.

Solutions are provided under a subscription-based revenue model, typically charged on a per employee per year basis. Limeade has had strong historical growth and has high quality recurring revenue, comprising 96% of FY20 forecast revenue. Limeade revenue has grown at a CAGR of 33% between FY14 and FY18 and is forecasting US$56.1 million revenue in FY20F.

Limeade recently won a number of large customers, including a top five global airline, a top five global technology company and a global manufacturing company.

Limeade Historical Revenue Growth (US$ millions)

Key Investment Highlights

  • A$100 million IPO, fully underwritten by the Joint Lead Managers, Macquarie Capital (Australia) Ltd and Moelis Australia Advisory Pty Ltd.
  • Large and growing addressable market with employee experience software market in organisations with 500 or more employees in the US estimated to be US$8.0 billion in total and US$5.7 billion for the solutions that Limeade currently offers.
  • Contracted revenues with a high degree of visibility and strong revenue forecasting US$56.1 million revenue in FY20F, US$54.1 million of which relates to subscription revenue.
  • Strong and diverse customer base with 176 organisations including 2 of the top 5 global airlines and a top 5 global technology company. Currently, over 90% of customers have more than 5,000 employees on one or more Limeade solutions.
  • Sophisticated, integrated and scalable platform with flexible and modern architecture that is adaptable and requires limited additional development for Limeade to launch new solutions and integrate newly acquired solutions.
  • Science and data-based product development strategy using customer-generated data from over 2.4 million users is used in combination with primary and secondary research from the Limeade Institute to create a “continuous feedback loop” for product development.
  • Strong growth profile with ongoing investment into growth, experiencing strong and consistent revenue growth, including a CAGR of 33% between FY14 and FY18.
  • Founder-led business with deep industry experience bringing substantial technology and employee experience industry expertise along with a deep understanding of the Limeade business and its products and clients.

Offer Overview

Limeade, Inc. is looking to undertake an IPO on ASX to raise A$100 million via the issue of 54.1 million CDIs at an offer price of A$1.85 per CDI.  The company will have an indicative market capitalisation of A$490.8 million on a fully diluted basis at maximum subscription.  

The offer is fully underwritten by the Joint Lead Manager, Macquarie Capital (Australia) Ltd and Moelis Australia Advisory Pty Ltd.

The Company is offering CHESS Depositary Interests (CDIs) over ordinary shares. CDIs represent the beneficial interest in the underlying shares in a foreign Company and are traded in a manner similar to shares of Australian companies listed on the ASX.  Each Share will be equivalent to 1 CDI.

Key Offer Statistics

Funds raised from the issue and transfer of Shares under the Offer will be applied as follows:

For further information on the Key Offer Statistics and Use of Funds, please see the prospectus.

Industry overview

Limeade operates in the employee experience software industry.  Employee experience software providers provide software to assist organisations to simplify and improve their employee experience.  Employee experience providers provide solutions in a number of categories, which include employee well-being, engagement, diversity & inclusion, communications, learning experiences, goals & feedback, rewards & recognition, strategic consulting and corporate social responsibility.

The employee experience market is a large and growing market, within which Limeade is a leading software provider.  Limeade believes there is potential for it to participate in growth in the employee experience software market, driven by uptake by enterprise customers of employee experience software offerings, a shift from multiple independent solutions toward integrated platforms, related factors such as software becoming a higher proportion of the total employee experience software and services market over time.

Estimated Employee Experience Software Market in the US (US$)

Company Overview

Limeade is a leading provider of cloud-based employee experience software solutions (Limeade Well-Being, Limeade Engagement, Limeade Inclusion and Limeade Communications) which are delivered through a single, integrated technology platform (Limeade platform).

The Limeade software solutions are sold under a subscription-based revenue model to organisations. Limeade had CARR (being “contracted annual recurring revenue” which represents the total value of contracted revenue at a point in time, expressed on an annualised basis) of US$53.4 million as at 30 September 2019. With 176 organisations as customers, Limeade has over 2.4 million users located in the US and approximately 100 other countries. While its target market includes enterprises with 500 or more employees, Limeade targets its sales and marketing efforts towards larger enterprise customers who have thousands of employees.

Limeade has operated a capital-efficient business model, having only raised US$34 million since inception. As at 30 September 2019, Limeade has invested approximately US$74 million in product development since 2006. A total of US$44 million is expected to have been invested since 1 January 2017 to the end of FY19, a portion of which includes investment to integrate Sitrion capabilities into the Limeade platform, allowing Limeade to provide a connected user experience across its entire suite of software solutions.

Timeline of Select Limeade Milestones

Limeade Platform and Key Solutions

Limeade provides cloud-based employee experience software solutions which are delivered through an integrated employee experience platform that connects its purpose-built solutions to address employee well-being, engagement, inclusion and communications needs. Each solution is deployable either individually as a standalone offering or in combination with other solutions to support a unified, consistent, technology-enabled employee experience.

The Limeade platform provides employees with common interfaces to access a wide range of personal and professional services and applications. All solutions have been designed to provide a mobile app, mobile web and desktop web end-user experience that are device-agnostic and able to connect organisations and their employees in a variety of ways.

Limeade Platform Solutions

Platform Development

Since July 2006 Limeade has invested approximately US$74 million into developing the Limeade solutions, with a focus on expanding the number of solutions it offers, building out its fully integrated Limeade platform and continuing to enhance features, functionality and overall user experience. The Limeade platform’s flexible and modern architecture is adaptable and requires limited additional development for Limeade to launch new solutions and integrate newly acquired solutions.

Customers

Historically, Limeade has focused on US headquartered enterprise customers (defined by Limeade as large organisations with thousands of employees) and expanded further into the European Union (EU) in 2018. Following the IPO, Limeade intends to continue to progressively expand its presence to customers headquartered in the EU, Asia Pacific and other regions.

An example of the 176 Limeade customers include:

  • A top 5 global tech company
  • 2 of the top 5 global airlines
  • ABB
  • Enterprise Holdings
  • Keurig
  • Kindred Healthcare
  • State of Washington

Adding to the momentum of its growing customer base, Limeade recently contracted as customers a top five global technology company and another top five global airline company.

Limeade is actively expanding its customer base, which affords Limeade with added benefits of industry and customer diversification, including through reducing impacts from sector-specific cyclicality. No single industry contributes greater than 25% of total Limeade CARR.

Proportion of CARR by Industry Over Time and CARR by Industry (as at Sept 2019)

Revenue Model

Limeade generates revenue through the sale of its software solutions to customers, which are provided via the cloud under a subscription-based revenue model. Typically, customer contracts have three-year terms (the remainder having terms of one, two or five years) with customers paying Limeade fees in advance based on their number of employees.

In FY18, 97% of revenue was subscription-based, software revenue. Other revenue was generated from the sale of third-party products such as While, Zipongo and Amazon gift cards, as well as third-party services such as biometric screening.  Limeade has experienced strong and consistent revenue growth, which has grown at a CAGR of 33% between FY14 and FY18and is forecasting US$56.1 million revenue in FY20F.

Pro Forma Historical and Forecast Summary Financials (US$ millions)

For further information, see Section 4 of the prospectus.

Growth Strategy

Limeade intends to leverage its growth and the historic investment into its platform, infrastructure and reputation to continue growing the business.

The key pillars of the business’ growth strategy include:

  • Acquiring new customers, including additional investment in core market and expansion into key strategic markets
  • Expansions (of users) and upsells (of new solutions) to the existing customer base
  • Continuing to expand platform and solution offerings with internal development
  • Growth through strategic acquisition

Key Board and Management

Elizabeth Bastoni - Chair, Non-executive Director

Elizabeth is an experienced board member and executive with over 30 years of experience working in executive compensation, CEO succession, talent development, change management, acquisitions and tax. Elizabeth currently holds board roles with France-based Société Bic, which had sales of approximately €2 billion in 2018, and Portugal based Jerónimo Martins, which had sales of approximately €17 billion in 2018.

Henry Albrecht - Chief Executive Officer, Executive Director

Henry has led Limeade as CEO since 2006 and joined the Limeade Board in 2006. Henry has over two decades of senior management experience in the software industry.  Prior to founding Limeade, Henry served as VP of Product Management at Bocada, an enterprise software company. He was a product, brand and business manager at Intuit, a financial software vendor, where he launched several successful new businesses.

Toby Davis - Chief Financial Officer

Toby joined Limeade as CFO in January 2017 and brings an extensive background in architecting and scaling financial operations, management and strategy, and a deep knowledge of the technology industry.

Erick Rivas - Chief Technology Officer

Erick is the CTO and co-founded Limeade in 2006. Erick has an extensive background in technology and innovation, having co-founded Mongoose Technology and Protosoft (which was acquired by Platinum Technologies) and served as a VP of product integration at Platinum Technologies (which was acquired for $3.5 billion).

Laura Hamill - Chief Science Officer & Chief People Officer

Laura co-founded Limeade in 2006 and, in her capacity as Chief Science Officer, leads the Limeade Institute. Laura also serves as Chief People Officer. Laura has a depth of experience in the people and management sector, having served as the Director of People Research at Microsoft.

Risks

Some of the key risks of investing in the Company are detailed below. This list of risks is not exhaustive, and further details of these risks and other risks associated with an investment in the Company are detailed in Section 5 of the prospectus.

 

Section 734(6) disclosure: The issuer of the securities is Limeade,Inc. ARBN 637 017 602. The securities to be issued are CHESS Depositary Interests (CDIs) over ordinary shares in the capital of Limeade, Inc., to be quoted on ASX. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.​

The prospectus does not constitute an offer to sell, or a solicitation of any offer to buy, securities in the United States. The prospectus has been prepared for publication in Australia. The CDIs to be offered under the offer have not been, and will not be, registered under the U.S. Securities Act 1933 ("U.S. Securities Act") or the securities laws of any state or other jurisdiction in the United States, and may not be offered or sold in the United States, or to, for the account or benefit of a U.S. person in the absence of registration or an exemption from registration under the U.S. Securities Act and applicable state securities law. In addition, any hedging transactions using CDIs may only be conducted in compliance with the U.S Securities Act.

 

 

 

 

 

 

 

 

 

IPO
Materials
$0.20
Size of Offer $4m - $6m
Minimum Bid $2,000.00
Opening Date 4/07/2019
Closing Date 20/12/2019

 

Update

The company has advised that a Supplementary Prospectus has been lodged and the offer has been extended until 29 October 2019.

Introduction

Tartana Resources Limited (ASX: TNA) is a zinc and copper exploration company with assets being the Tartana Copper and Zinc Project in northern Queensland and the Zeehan Zinc Slag Project in western Tasmania.  The Tartana Project is the flagship project. It comprises four mining leases which contains an open pit which was the source of copper oxide ore for historical copper sulphate production using heap leach pads and a solvent extraction/crystallisation plant, still on site

Past exploration on the mining leases has defined four separate exploration projects and mineralisation in each potentially relates to an interpreted deeper porphyry copper system. The projects are the Queen Grade Zinc Project comprising a zone of interpreted zinc skarn mineralisation, a Copper Oxide Project which is based on mineralisation evident within and around the existing open pit, a deeper Copper Sulphide Project below and to the north of the pit and lastly, the Valentino Copper/Gold/Silver/Cobalt Project which is further east but may also be related to the deeper sulphide mineralisation.

Recent work by the Company has involved defining JORC 2012 Exploration Targets for the Queen Grade Zinc Project and both the deeper Copper Sulphide and Valentino Projects.

Investment Highlights

  • Exploration potential – The Tartana Copper and Zinc Project is located in the prospective Chillagoe region and has previously operated as a mining operation and with further exploration, each of these Projects has potential for the Company to define copper or zinc resources.
  • Historical data – The Tartana Copper - Zinc Project has been sporadically explored over the years with historical drilling, geological and geophysical data available. The Zeehan slag dumps have been drilled by past explorers and the company has recently completed further drilling to upgrade the mineralisation to resource status.
  • Attractive commodities  - copper and zinc are two commodities with attractive supply and demand fundamentals
  • Granted mining tenements – The four tenements associated with the Tartana Project are long-dated Mining Lease, the Zeehan Slag tenement is under a newly granted Mining Lease and the Mt Hess and Amber Creek Tenements are granted exploration permits renewable in 2022.
  • Experienced management team with significant expertise in mineral projects, project development and corporate finance.

Offer overview

Tartana Resources Limited is looking to raise $4 million to $6 million.  The company proposes to use the funds raised from the Offer to:

  • undertake drilling on the projects within the Tartana Copper and Zinc Project mining leases;
  • advance the Zeehan Zinc Slag Project, commence initial exploration on the Mt Hess and Amber Creek Projects and undertake project generation;
  • Provide working capital; and
  • to pay for the variable costs of the Offer.

The Mining Projects

Tartana has a mission to become a significant copper and zinc company through development of its existing projects, acquisitions of new projects and exploration success.

The Tartana Project has been broken into four separate projects within the four mining leases and these are; Copper Oxide Project, Copper Sulphide Project, Queen Grade Zinc Project and the Valentino Copper/Gold/Silver/Cobalt Project. 

Tartana Copper and Zinc Project, North Queensland

The flagship project is located approximately 150 km west of Cairns and 40 km northwest of Chillagoe along the Burke Development Road.  This area hosts major porphyry and skarn related deposits including the Red Dome porphyry copper-gold skarn, the Mungana porphyry copper-gold-zinc-lead deposit, the King Vol high grade zinc skarn deposit and numerous smaller deposits along the belt.  Historically, copper mineralisation has been reported at Tartana Hill where small scale mining has occurred in the past as well as elsewhere across our leases.

Separately, zinc mineralisation is present in the Queen Grade Project within our mining leases, and has similarities with the zinc mineralisation in other projects in the Chillagoe region including the neighbouring King Vol Zinc mine.

 

Copper Sulphate Production and Copper Oxide Potential

The previous owner and operator treated copper oxide mineralisation in a small scale heap leach solvent extraction operation which produced high quality copper sulphate. The process involved mining shallow oxide copper ore in an existing and now partially rehabilitated open pit and which was stacked on the leach pads for leaching to produce copper sulphate for sale into the mining and agriculture industries. There is ample evidence that oxide copper material is still available in the base and walls of the pit and also in a zone extending 280 m north of the pit and we will focus some of our exploration work on quantifying this copper mineralisation (See Figure 5 and 6).

 

Figure 5 - Heap leach pads and Solvent Extraction plant.

 

Figure 6 - Copper Sulphate in one tonne bulka bags which has been produced by the previous owner and awaiting shipment).

 

Zeehan Zinc Slag Project, Western Tasmania.  Tartana’s wholly owned subsidiary, Intec Zeehan Residues Pty Ltd owns Mining Lease ML 3M/2017 located approximately 2.5 km south of the township of Zeehan in western Tasmania. This lease contains an old smelter site along with residue stockpiles of zinc-rich slag.

The Zeehan smelter operated intermittently from 1898 and 1948 recovering lead, silver and copper from the processing of locally mined ores and ore concentrates.  The Company recently implemented a 7-hole air core drilling programme to assist in verifying historical drilling data and to enable an upgrading of the mineralisation to a JORC 2012 Indicated Resource status

Tartana is investigating opportunities to monetise the zinc in the slag to provide working capital to finance other activities. And also to have the opportunity to improve the site in terms of its historical significance.  They have investigated a number of options which include:

  • Leaching the slag to recover the zinc. This includes leach testwork which has been carried out by Core Resources Pty Ltd, and demonstrates that high zinc recoveries are achievable in a leach process.
  • Slag sales to a third party processor in Europe. Samples have been collected and sent overseas for testing in a Waelz kiln in Europe.
  • Slag sales to local smelters. This has involved the collection of a 5,000 tonne bulk sample which has been trucked to the Port of Burnie. This bulk sample has been shipped to Nyrstar’s Port Pirie smelter in South Australia and been used in trial processing.

The Exploration Projects

Tartana has two exploration projects in Queensland which are held in the Company’s 100% held subsidiary, Oldfield Resources Pty Ltd.

Mt Hess Copper-Gold Project - The Mt Hess Project is located approximately 100 km southwest of Mackay. The project area covers part of the Gotthardt granodioritic intrusion which intrudes into the overlying Permian sediments of the Bowen Basin. Skarn and porpyhry copper mineralisation is associated with this intrusion and within the Mt Hess Project area there are numerous copper-gold prospects in an area north of the Gotthardt granodiorite.

Amber Creek Molybdenum-Tin-Tungsten Project - The Amber Creek Project is located 177 km southwest of Cairns and comprises an area covering a number of separate molybdenum, tin and tungsten prospects. These prospects are within the undifferentiated metamorphics which are probably related to the McDevitt Metamorphics which have been intruded by the Elizabeth Creek Granite.  Oldfield has conducted geological mapping along with soil and magnetic surveys over the area and has also identified several discrete mineralised vein structures. Tartana will implement an initial exploration programme focused on sampling these structures.

Commodity Outlook

Copper

Copper is often referred to as a bellwether of the markets and the supply/demand balance is often dominated by demand expectations which itself reflects the outlook for world economic growth but particularly with China. As well as copper demand in electric vehicles, stronger copper demand stems from new infrastructure projects in China and India including the expansion of their respective power grids and in China, the development of the high-speed rail network and domestic demand (air conditioners, etc.).

Zinc

According to the International Lead and Zinc Study Group, after increasing by 1.3% in 2018, global zinc mine production is forecast to rise by 6.2% to 13.48 million tonnes in 2019. New zinc supply has been dominated by Australian producers.  China is also a significant player in the zinc market as investment in infrastructure and any pick-up in construction could drive overall demand higher.

Management and Board

Tartana Resources Limited is led by a team which has extensive experience in geology, mining and metallurgical processing and product marketing as well as financial, technical and management experience in the resources industry.  These include:

  • Dr Stephen Bartrop (Executive Chairman) with more than 30 years’ experience covering periods in both the mining industry and financial sector. With a geology background, Steve has worked in exploration, feasibility and evaluation studies and mining in a range of commodities. In the financial sector, Steve has been involved in research, corporate transactions and IPOs spanning a period of more than 20 years, including senior roles at JPMorgan, Bankers Trust and Macquarie Equities.
  • Bruce Hills (Executive Director) is currently an Executive Director of Breakaway Investment Group Pty Limited which operates the Breakaway Private Equity Emerging Resources Fund. Bruce is a Director of a number of unlisted companies in the mining and financial services sectors including The Risk Board and Stibium Australia.
  • Peter Rohner (Executive Director) with over 30 years’ experience in the mining industry and has been involved in mineral processing technology development including development of the Jameson flotation cell, IsaMill fine grinding and more recently had significant involvement in further development of Glencore’s Albion Process (fine grind oxidative leach) technology.
  • Craig Nettelbeck (Non-Executive Director) successfully forged global relationships enabling him to negotiate numerous complex transactions before moving into the corporate advisory sector specialising in the agriculture, energy and mining sectors.
  • Robert Waring (Non-Executive Director) with over 40 years’ experience in financial accounting and company secretarial roles, principally in the resources industry.

Risks

You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. As set out in Section 9 of the prospectus, Tartana Resources Limited is subject to a range of risks, including but not limited to exploration and development, development of acquisition opportunities, valuation of tenements, dependence on key personnel and native title and land access risks.

 

Section 734(6) disclosure: The issuer of the securities is Tartana Resources Ltd ACN 126 905 726. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

Breakaway Research Pty Ltd has provided only a distribution service to OnMarket using its database. Please note that Stephen Bartrop is a director of Tartana Resources and is also a director of Breakaway Research Pty Ltd.

OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Bids over $10,000 may be scaled back more heavily. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

Disclaimer: All information on this section is of a general nature. Before making any investment decision, please seek the relevant advice.

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