Mawson Finland, the company created to advance the Rajapalot gold and cobalt project, has closed its initial public offering (IPO) and will list on the TSX-V on Monday.
Pursuant to the IPO, Mawson issued almost 2.88-million shares at $1 a share, including 375 000 IPO shares following the exercise in full by the agent of its over-allotment option, for aggregate gross proceeds to the company of $2.88-million.
The net proceeds from the IPO will be used for the work programme recommended in the revised preliminary economic assessment (PEA) on the wholly owned Rajapalot project.
Rajapalot is an exploration and development project that is highly prospective for orogenic-style gold mineralising systems and that currently comprises an inferred gold/cobalt resource with contained metal of 867 000 oz of gold and 4 310 t of cobalt.
The PEA has demonstrated potential for strong development economics, including a $211-million post-tax net present value. The PEA shows a nine-year mine life producing an average of 78 000 oz/y of gold and 311 t/y of cobalt per year, for total production of approximately 700 000 oz of gold and 2 800 t cobalt over the life-of-mine, at an all-in sustaining cost of $824/oz of gold. 