Montem Resources Limited – Initial Public Offer

DJ Carmichael Pty Limited (“DJC”) has been invited to participate in an initial public offer (“IPO”) being undertaken by Montem Resources Limited (“Montem”).

Montem is seeking to raise up to $20 million via the issue of up to 40 million fully paid ordinary shares (“Shares”) at an issue price of $0.50 per Share. The minimum subscription is 30 million Shares to raise $15 million.

IPO Shares will be issued pursuant to a replacement prospectus that was lodged with the Australian Securities and Investments Commission (“ASIC”) on 14 August 2018 (“Prospectus”). The Prospectus can be found at http://montem-resources.com/details/. Investors should read the Prospectus before deciding whether to invest.

The Company proposes to apply for official quotation on the Australian Securities Exchange (“ASX”) in 3Q 2018. 

Participation in the Offer is available to all retail, Sophisticated and Professional Investors.

Montem Resources Limited is a coal mine development company with metallurgical coal properties in Canada, known as the Chinook Properties. The Company’s primary objective is to re-establish mining at the Tent Mountain mine, while exploring and evaluating the development potential at the other Chinook Properties.

Investment Highlights

  • Pathway to potential production: The Company intends to carry out pre-development drilling to enable a definitive feasibility study (“DFS”) at the Tent Mountain mine and to apply for the necessary licenses to re-establish mining operations, with the aim of completing such applications within a year of the IPO’s completion.

  • Experienced board and management: Extensive coal experience in Canada and Australia covering project development, operations, finance and marketing.

  • Significant Resource base: The Chinook Properties include four projects with JORC compliant Mineral Resources totalling 163Mt (130Mt Indicated, and 33Mt Inferred), located in an active mining district in close proximity to key mines of Teck Resources, which is a major producer of Canada’s coking coal.

  • Potential for high quality steelmaking coal: While historic production at Tent Mountain mine and Vicary-Racehorse was sold as hard coking coal to Japan, there is no certainty similar hard coking coal products will be produced from any of the Chinook Properties. Further drilling and sample testing will be required to confirm whether a soft, semi-soft/weak, semi-hard or hard coking product can be produced.

  • Previously mined: Four of the Chinook Properties contain previous open-cut and underground mines that were operational in the 1960s, 1970s and 1980s, with Tent Mountain closing in 1983.

  • Approvals: Tent Mountain mine has current mine and environmental permits, however an amendment to the environmental permit is required to restart mining as are requisite additional mine operating licences.

  • Nearby infrastructure: Most of the Chinook Properties, including Tent Mountain, are within close proximity to the main rail network potentially linking the properties to export ports in Vancouver.

  • Exploration upside: Potential for Resource extension through exploration activities.

Funds raised via the IPO will be used for drilling to support the proposed DFS, for environment and engagement work, feasibility studies, project development, costs of the IPO and working capital.

An indicative timetable for the IPO is set out below:

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Fees payable to DJC Advisers will be as follows:

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For example, for an allocation of $10,000, DJC will receive $450 of which the Adviser will receive $225.

Please ensure all bids are lodged via Complii Adviser Bid by the deadline of 10.00am WST Thursday, 30 August 2018, the deal is open in Adviser Bid and will be sent to all DJC clients shortly via Complii Client Bid and SMS.
 
Please note, only clients with active accounts can be placed into the book, we won't be accepting any book entries for non-clients.