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Investment Solutions

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Investment Solutions

Features

IPO Watch: Southern Cross Gold, Aurora Energy Metals, Bindi Metals, TG Metals

Rene Anthony

Sunday, May 15, 2022

Sunday, May 15, 2022

Four ASX IPOs are on the cards this week, unsurprisingly, all from the resources sector as appetite for gold, lithium and other metals remains high, despite the market downturn

Four ASX IPOs are on the cards this week, unsurprisingly, all from the resources sector as appetite for gold, lithium and other metals remains high, despite the market downturn

With market volatility striking at the heart of US companies that might be looking at a prospective float on the Nasdaq or NYSE, it is the ASX where a small handful of commodity explorers are looking to push through with IPOs this week.

First up, Southern Cross Gold (ASX: SXG) is the week biggest listing, securing $10 million in IPO funds. The company has been spun out of Toronto Stock Exchange-listed Mawson Gold, a company that has delivered an inferred resource of 1.04Moz at 3.0g/t AuEq at its Rajapalot gold-cobalt project in Finland, deemed the seventh-largest cobalt deposit in Europe. Southern Cross has spent almost $6 million on drilling thus far as it explores base minerals and precious metals, led by the Sunday Creek gold project north of Melbourne.Elsewhere, Aurora Energy Metals (ASX: 1AE) is tapping into demand for two of the hottest commodities at the moment. The junior resources explorer is hoping that $8 million in funds will help it evaluate the potential for uranium and lithium at its Aurora Project in Oregon, USA. So far, the company has established that the project hosts a defined uranium resource, and it believes it may also be prospective for lithium.The third of this week ASX IPOs is Bindi Metals (ASX: BIM), which is planning to acquire the Biloela project in Queensland, host to tenements that management believe are prospective for gold and copper. Post-listing, and with just shy of $5 million in fresh funds available, the company will turn its focus to data compilation and geophysical surveys. It will focus on the Flanagans and Great Blackall prospects, with a drilling campaign to follow suit.And finally, TG Metals (ASX: TG6) is the fourth of this week resource floats. The company has a slightly different focus than other names mentioned here, as not only is it looking for gold, it is also eyeing nickel and lithium. The company has put together a supersized package of assets, laying claim to the largest collective land package for any explorer within the Lake Johnston Greenstone Belt, an underexplored area deemed prospective for nickel, lithium and gold, and with more than 50km of strike in its sights.

Upcoming IPOs

CompanyFocusIPO size   Expected debut   ASX   Southern Cross Gold (SXG)Precious metals and base metals explorer   $10m16 MayASXAurora Energy Metals (1AE)   Uranium and lithium explorer$8m18 MayASXBindi Metals (BIM)Copper and gold explorer$4.8m19 MayASXTG Metals (TG6)Lithium, nickel and gold explorer$6m20 May

*All dates are subject to change and should be treated as an indicative guide only

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