Condor IPO to seek $8m

A Spin-off company from Perth-based explorer Carrick Gold Ltd is aiming to list on the stock market late next month, after raising up to $8 million in its initial public offering.

Carrick bought additional nickel assets last year through the purchase of explorer Shannon Resources Ltd, and has decided to divest its nickel and base metal assets into new company, Condor Nickel Ltd.

Carrick will retain all the gold assets with a view to stepping into the producer category in the near term.

The company will also hold a 7.93 per cent interest in Condor upon listing and Carrick shareholders will have a near 35 per cent stake.

The remainder of the 40 million shares are now up for public offer, priced at 20 cents apiece, to raise $8 million.

The offer has a minimum subscription of $4 million.

Condor’s flagship asset is the Grey Dam project, located 90 kilometres from Kalgoorlie.

 Condor director Bevan Jaggard said a nickel resource was planned for release within three months of listing.

Additionally, new technology being developed by Perth-based Minara Resources Ltd for the extraction of a specific type of nickel, which is present at Grey Dam, has helped to boost the company’s prospects.

“We’ve had a lot of interest in the float; we expect to close very early in the piece and be fully funded,” Mr Jaggard told WA Business News.

Overall, Condor has acquired a portfolio of 26 tenements in the Kurnalpi and Gindalbie regions.

Condor will spend $4.75 million in the first two years of exploration if maximum subscription is achieved in the offer.

Three of Carrick’s four board members will serve on Condor’s board.

Frank Carr heads up as executive chairman, and Brian Martin and Mr Jaggard will hold directorships.

The scheduled closing date for the offer is May 14 and Condor plans to list on the stock market on May 23.