Shares in Mount Pleasant-based tin explorer Consolidated Tin Mines Ltd debuted on the Australian stock exchange at 17 cents each today, slightly down on their offer price of 20 cents per share.
Shares in Mount Pleasant-based tin explorer Consolidated Tin Mines Ltd debuted on the Australian stock exchange at 17 cents each today, slightly down on their offer price of 20 cents per share.
However, its shares eventually closed 5 cents, or 25 per cent, lower to 15 cents each.
Consolidated Tin raised the minimum subscription of $4 million sought in its initial public offer, and now intends to develop its extensive tin mineralised ground in the Mt Garnet area of north Queensland.
The company originally had 20 million shares at 20 cents each and 10 million free options on offer with 1 option for every 2 shares subscribed, and was accepting oversubscriptions of up to a further $4 million through the issue of up to a further 20 million shares at 20 cents each.
In a letter to shareholders today, managing director Ralph De Lacey said the company would start exploration work as soon as possible.
"Much of the company hardrock mineralisation is associated with iron rich rock, and the company is in negotiations with an airborne magnetic survey company to undertake a magnetic survey as soon as available," he said.
"The company will start drilling immediately to increase resources within the known deposits and to expand known mineralised areas where as yet no estimated resource has been established."
The independent geologist report in the IPO highlighted the contained tin metal resource, in compliance with the 2004 JORC code, as 26,700 tonnes.
Mr De Lacey said the result represented a significant resource and gave solid support for the future of the company.
"Within the company tenements, while the tin mineralised ground has been the most actively explored, Queensland government reports, highlight more than 20 tungsten mineralised occurrences, some with associated molybdenum mineralised.
"Both Tungsten and molybdenum, like tin are currently high value commodities. The company is looking forward to a active field season which will seek to extend and define the current company resources," he said.
The London Metal Exchange price for tin metal has consistently remained above $US17,000/tonne tin metal.
Mr De Lacey is also a director of Delminco Pty Ltd, a uranium exploration company, and managing director of NQ Mining Enterprises Pty Ltd, a mining project management company.
He is joined on the board of Consolidated Tin by executive technical director and geologist John Sainsbury, non executive director and lawyer Andrew Kerr, and non executive chairman Randall Wynn- who currently chairs Cairns Penny Savings & Loans Ltd.
Perth-based CK Locke & Partners acted as lead manager to the IPO, while Steinepreis Paganin offered support as
solicitors and BDO Kendalls Corporate Finance (WA) Pty Ltd as investigating accountant.
