PVW Resources set to list on ASX after IPO raising success and plans extensive gold exploration

PVW Resources Limited (ASX:PVW) is poised to list on the ASX tomorrow after increasing its IPO raising from $2.5 million to $4.5 million due to strong interest from investors. The company’s public offer is for up to 22.5 million shares at an issue price of $0.20 each to raise up to $4.5 million before costs.   This offer is not underwritten and the company appointed CPS as lead manager. CPS agreed to raise up to $4.5 million on a ‘best endeavours’ basis. PVW acquisition The board considers that the strong demand for shares under the public offer is a strong endorsement of the company’s proposed acquisition of PVW Resources NL and its business strategy. In the prospectus, PVW chairman David Wheeler said: “On behalf of the directors of Thred Limited (to be re-named PVW Resources Limited) I am delighted to invite you to participate in an issue of shares to raise up to $4.5 million through an issue of up to 22,500,000 shares at an issue price of $0.20 per share (public offer). ”On September 14, 2020, the company announced the execution of a binding terms sheet with PVW Resources NL for the acquisition of 100% of the issued capital in PVW. “By entering into the acquisition, PVW will become a wholly-owned subsidiary of the company.” Western Australian gold assets The proposed acquisition of PVW signifies an important transforming event that will see the company focus its activities on the exploration and development of gold projects in Western Australia: The Kalgoorlie project, comprised of 11 granted tenements covering 95.6 square kilometres; The Leonora project, comprised of three granted and two pending tenements covering 195.6 square kilometres; and The Tanami project, comprised of 12 granted and one pending tenements covering 866 square kilometres. “Systematic exploration planned” Wheeler said: “This public offer is being made to provide funds to undertake a systematic exploration program on the company’s projects, aimed at the discovery of economic mineral deposits. “The company has assembled an experienced management and exploration team which is well qualified to exploit the potential of the company’s mineral assets. “The board has significant expertise and experience in mineral exploration, project development and corporate finance, and aims to ensure that funds raised through the public offer will be utilised in a cost-effective manner to advance the company’s projects.” PVW's Western Australia gold projects. Phase 1 work Phase 1 of the planned exploration program will centre on determining the operational potential across the Jungle Well mining lease at Leonora Gold Project. Following listing the company will begin an initial 5,000-10,000 metre RC and diamond drill campaign in the first quarter of 2021. This program will incorporate twinning several historic drill holes immediately beneath the Jungle Well open pit, to confirm the location of unmined resources directly beneath the pit void. JORC-compliant resource category improvement and strike extensions will also be a focus of this program with notable historical results in the north of the mining lease to be followed up as well as shallow results returned from aircore drilling at the Brilliant Well Project; Phase 1 activities will also include initial testing with 3,000-5,00 metres of aircore drilling of structural targets within the King of the West-Kalgoorlie Gold Project, along with some follow up of anomalous historical drill results. Remote geophysical and some on-ground geochemical data acquisition will be undertaken in the Tanami Gold Project during Phase 1 exploration activities. Phase 2 at Tanami Project Phase 2 exploration is planned to start with a drilling program in the Tanami Gold Project in the second half of 2021. This area has had limited exploration at depth and the company is eager to follow up significant results at the Killi Killi prospects which need further exploration. Some of the Phase 2 activities in the Tanami will be dependent on geophysical and geochemical data acquisition and interpretation proposed in early 2021. Phase 3 and 4 programs Phase 3 and 4 exploration activities in 2022 will return to the Leonora and Kalgoorlie projects to infill and follow-up results where positive. With success during Phase 1 and 2, the Tanami Gold Project will require further follow-up drilling and initial drill testing of new targets.