OZM - OzAurum Resources

[System]

OzAurum Resources was established to identify and explore, with a view to potentially developing, two gold projects in Western Australia.

The Managing Director and CEO, Andrew Pumphrey, began securing tenements at Mulgabbie, Western Australia, from as early as 1990. Over a 30-year period, Mr Pumphrey, together with his associates, compiled a portfolio of Tenements that comprise the Mulgabbie Project and Patricia Project, which are now owned by OzAurum Mines Pty Ltd, a wholly-owned subsidiary of OzAurum Resources.

Both the Mulgabbie and Patricia Projects are located within the Norseman-Wiluna Greenstone Belt of the Eastern Goldfields Province of the Yilgarn Craton. The projects are situated approximately 100km north-east of Kalgoorlie, and closely neighbour a number of existing mining operations and a gold processing plant.

The Company intends to allocate the majority of the funds raised by its IPO directly to explorative drilling and geological assessments over the next two years to progress the projects, with the remaining funds being allocated to working capital requirements and other administrative expenses.

It is anticipated that OZM will list on the ASX during February 2021.

Home - OzAurum Resources Limited

OzAurum Resources is a gold explorer in Western Australia. Owner of two long-held gold projects, Mulgabbie North and the Patricia Deposit in a region more than 100 km north-east of Kalgoorlie- famous for greenfields exploration.

ozaurumresources.com

 

[Dona Ferentes]

came to the boards Monday, hasn't hit IPO price yet; closed on Day Two at 24c.

Listing date	8 February 2021 10:30AM AEDT
Company contact details	https://ozaurumresources.com/ Ph: +61 8 6211 5099
Principal Activities	Mineral Exploration
GICS industry group	15104030
Issue Price	$0.25
Issue Type	Ordinary Fully Paid Shares
Security code	OZM
Capital to be Raised	$12,000,000
Expected offer close date	15 January 2021
Underwriter	Not underwritten. Canaccord Genuity (Australia) Limited (Lead Manager)

5 minute chart for last 2 days:

 

[greggles]

Great looking assay results announced today from the Mulgabbie Project. Thick intersections and decent grades indicate that the project has the potential to host a sizeable deposit.

Follow up RC and diamond drilling are planned but no dates announced yet, although the company says it is a "high priority" so it can't be too far away.

Share price is up 135% today but the market cap is still relatively small. Lots to like here.

 

[Tyre Kicker]

The tenement must nearly connect to Nexus Mineral’s southern boundary.

Great ground.

 

[greggles]

The tenement must nearly connect to Nexus Mineral’s southern boundary.

Great ground.

Yes, you are correct. The "Whirling Dervish mine" location on both area maps is a useful point of reference. The two project areas actually seem to connect.

 

[Tyre Kicker]

Yep.

Massive system running right through that area.

Very surprised Nexus’ sp hasn’t kicked on more.

Might buy a few OZM Once this settles. See how much cash they have left. I think they’ll need to raise soon.

 

[greggles]

Yep.

Massive system running right through that area.

Very surprised Nexus’ sp hasn’t kicked on more.

Might buy a few OZM Once this settles. See how much cash they have left. I think they’ll need to raise soon.

They had ~$4 million at the end of 2021 and appear to be burning around $1.5 million a quarter, so I guess they should have had at least $2.5 million at the end of last month. The best strategy from here would be to keep drilling and raise capital next quarter at an even higher price. That is, if Mulgabbie has the goods, which it looks like it does.

 

[finicky]

Took a position in this today @ 0.14
Prospects situated on a shear, looking for cross cutting faults like the analogous Carosue Dam deposits being mined by NST only 4 kms to the West. Main prospect Mulgabbie Nth.
Has discovered 4 kms of aircore mineralised strike, 1.3 kms of which also RC.
Shallow paleochannel zone with high grade a/c hits: 1m @ 162g/t, 1m @ 34g/t, 1m @ 31g/t
A 500 m 'demagnetized' area indicates hydrothermal alteration which might clue them into a feeder source?

Also has Patricia prospect 40 km NE of Mulgabbie which was first mined in 1930's for around 5,000 ozs @ 41 g/t. Followed by a shallow open pit mined down to only 25m in the 80's. Open at depth. They are already finding visible high grade there.

Low share issuance so far but a raising can't be far off considering only $4m cash at 31 Dec.
Share price gapped up from .105 on 21 April and shot through the roof temporarily after reporting an RC intersection of 56m @ 1.3g/t from 68m level in the aforesaid 'demag' zone. I think m.d said somewhere that this was a vertical hole, so not as convincing as an angled hole.

I have another bid down @ 0.12 in case it goes further to filling the gap.

 

[greggles]

Took a position in this today @ 0.14

I have another bid down @ 0.12 in case it goes further to filling the gap.

I think OZM is a good bet at 14c, and a great bet at 12c. As @Tyre Kicker has already pointed out, Mulgabbie North is a very prospective landholding and that first set of assay results is very impressive. I'm thinking of bailing out of a couple of under-performers and joining you.

 

[finicky]

@greggles in case you haven't viewed, here is m.d addressing RIU Explorers Conference Feb 13
He starts at 1.33
Parallels he describes to next door Carosue Dam are striking: gravity low, same stratigraphy of rock units, possible cross cutting faults through the shear.
Throw in the demag zone, the 3.5 long main paleo channel with strong gold hits - it all looks early stage super prospective to amateur me.
About the paleochannel, " if gold doesn't drop out of the sky it comes from somewhere [and] the p.c will help us understand the primary gold mineralisation"

 

[greggles]

Great presentation. I really like the look of OZM. 8km of strike, great maiden assay results with huge widths and good grades, very prospective ground, passionate and clued-in management. This has all the hallmarks of a diamond in the rough that has been overlooked because of global market volatility and geopolitical instability.

If the market tanks tonight you might get that 12c entry tomorrow.

 

[finicky]

Wow, I could have sold this today for $700 profit, pre-tax, before Commsec even cleared the transaction.
This is the sort of short term result that @frugal.rock dreams of

 

[qldfrog]

Wow, I could have sold this today for $700 profit, pre-tax, before Commsec even cleared the transaction.
This is the sort of short term result that @frugal.rock dreams of

Happy , for the time being, that my systems picked that one

 

[finicky]

Glad to hear you have a holding @qldfrog, this has so many auspicious ingredients that the vibe is strong for me. Location location. I will be patient and give them time to unlock the system should it be confirmed there is one.

They have started a diamond drill on the magnetic destruction ('demag') zone so will be intrigued to see core from the depths. An RC campaign on this zone to follow in 4 weeks. We get the DD rig for free as it's owned by the m.d of OZM - must pay operator's costs though. The m.d can afford to be generous since he owns a huge wad of 'free' shares from the ipo. More importantly perhaps, it means in future OZM will have swift access to a DD rig.

 

[Dona Ferentes]

Great presentation. I really like the look of OZM. 8km of strike, great maiden assay results with huge widths and good grades, very prospective ground, passionate and clued-in management. This has all the hallmarks of a diamond in the rough that has been overlooked because of global market volatility and geopolitical instability.

a diamond in need of more cash?

In TH pending the release of an announcement regarding a capital raising.

The upside, is that as #2 in the competition, it might be locked in for the next two days :

The trading halt is to last until the earliest of the Company releasing the announcement, or the commencement of trading on Wednesday 1 June 2022.

 

[greggles]

a diamond in need of more cash?

In TH pending the release of an announcement regarding a capital raising.

The upside, is that as #2 in the competition, it might be locked in for the next two days :

There's a chance the announcement will be released tomorrow, but the odds of that happening before the market close are slim. In any case, it could go either way after the announcement all depending on what share price they're raising capital at and how much they're raising. If the discount is too large the OZM share price will likely decline when it resumes trading.

They need the cash so it was bound to happen sooner or later but you would have thought if they had some good news coming they would have waited a little longer. Anyway, all will be revealed very soon.

 

[greggles]

OZM raising $2 million at 16c per share with eligible shareholders taking up the offer able to purchase up to $30,000 in shares. The Company may also raise another $1 million in a separate issue:

At completion of the SPP the Company may elect to raise a further $1million (before costs) through the issue of New Shares to sophisticated and professional investors (Top-Up Placement) at the same issue price as under the SPP. The Top-up Placement, if conducted, will utilise the Company’s available placement capacity pursuant to ASX Listing Rule 7.1.

Overall, a modest capital raise that demonstrates management's belief in the company's prospects. To not dilute further at current levels indicates that management is of the view that when they next need capital, they will be able to do it at a much higher share price.

SPP proceeds will be used to:

• Follow up the recent virgin gold Demag Zone discovery at the Company’s flagship Mulgabbie North Project;
• Continue Reverse Circulation (RC) drill testing of aircore (AC) saprolite gold anomalies and extensions at the Ben and James Prospects.
• Expand the exploration program underway at the Patricia Gold Project.
• Exploration will include up to 20,000m of RC drilling, 10,000m of AC drilling and
• 3,000m of diamond drilling.
• RC rig commenced drilling at the Demag Zone on Monday 30 May 2022.
• Diamond rig to continue drilling at Demag Zone commencing next week.

 

[finicky]

Gazumped me but I'll put in my screenshot anyway. I might go for a modest chunk of the SPP offering - enough maybe to double up. Non holders should also get a chance to buy around 0.16 unless positive drilling results intervene?

 

[greggles]

The annoucement being released today has ruined my chances in the May tipping competition. OZM will get down to around 16c in the short term as holders sell out to-re-enter around the price of the CR. If only they had waited until tomorrow. Hopefully June will be better.

 

[Dona Ferentes]

The announcement being released today has ruined my chances in the May tipping competition. OZM will get down to around 16c in the short term as holders sell out to-re-enter around the price of the CR. If only they had waited until tomorrow. Hopefully June will be better.

OZM holding at 18c or higher. It is not a placement, so maybe SPP participants are not as sophisticated, or don't know they can/ have to sell down to finance their new uptake. There is, of course, the danger of selling and then not receiving sufficient new shares because of scaling back. $2mill divide by $30K is only 67 shareholders taking up full entitlement.