On behalf of the Directors, it gives me great pleasure to invite you to become a
Shareholder in Australasian Gold Limited (Company or Australasian).
The Company is a mineral exploration company focused on delivering Shareholder
value through the identification, development and acquisition of exploration
properties, focusing on mining tenements prospective for gold and other minerals,
initially in Queensland and Western Australia. We are very excited to be taking our
portfolio of Australian gold exploration assets to the next stage of their development
through an initial public offering on ASX.
The price of gold has enjoyed significant gains over the last 5 years coinciding with
highly accommodative global monetary policies, such as successive programs of
quantitative easing in the US, Europe and Asia. While the price of gold and the
valuations of many gold mining companies has increased significantly in recent years,
your board believes that good quality gold exploration assets with confirmed
mineralisation in Tier 1 mining jurisdictions such as Australia, can still represent
compelling value in the context of current gold prices.
The Group’s business strategy is to focus on the exploration of mineral resource
opportunities that have the potential to drive value for Shareholders. Immediately
following the proposed ASX listing, the Group will launch exploration programs on its
flagship May Queen gold project, located in the Brovinia gold field in Queensland and
the Mt Clermont project in the Drummond Basin, central Queensland. The Group’s
exploration efforts will extend to the Fairview gold project (30 Km from Northern
Star Resources Limited’s Paulsens Gold mine) once this tenement application is
The initial exploration programs will be designed to better understand the structural
and depositional geology of the licence areas in order to then develop further
exploration programs that will be focused on the expansion of existing known
mineralisation and the potential discovery of new deposits.
The primary purpose of the Offer is to provide funds to undertake systematic
exploration of these programs at the Projects with the ultimate goal to define a
mineral resource that can be taken through to production, and to also raise the
Company’s profile through listing on ASX.
This Prospectus is seeking to raise a minimum of $4,500,000 by the issue of
22,500,000 Shares at an issue price of $0.20 per Share, with the ability to raise a
further $1,500,000 for a maximum raising of up to $6,000,000. The Company has
received commitments from high net wealth investors to subscribe under the Offer
for Shares with a total investment of $1,927,000.
The Company has assembled an experienced management and exploration team
which is well qualified to exploit the potential of the Group’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 Offer will be utilised in a cost-effective manner to advance the Group’s Projects.
I look forward to you joining us as a Shareholder and sharing in what we believe are
exciting and prospective times ahead for the Company.
Before you make your investment decision, I encourage you to read this Prospectus
carefully and in its entirety, including in particular the risks associated with an
investment in the Company. These include the early stages of the Company’s
projects (which do not have any mineral resources identified) and the speculative
nature of investing in junior exploration companies. If you are in any doubt as to the
contents of this Prospectus, you should seek professional advice from your
stockbroker, accountant, lawyer or other professional adviser if required.