Golden State Mining Limited – Initial Public Offer

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DJ Carmichael Pty Limited (“DJC”) is acting as Co-Manager to an initial public offer (“IPO”) being undertaken by Golden State Mining Limited (“GSM”).

GSM is seeking to raise $4.5 million via the issue of 22.5 million fully paid ordinary shares (“Shares”) at an issue price of $0.20 per Share. The Company reserves the right to accept oversubscriptions up to a further $1 million.

IPO Shares will be issued pursuant to a prospectus that was lodged with the Australian Securities and Investments Commission (“ASIC”) on 22 August 2018 (“Prospectus”). The Prospectus can be found at Investors should read the Prospectus before deciding whether to invest.

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

Golden State Mining Limited is a Perth-based mineral exploration company with a primary focus on exploration for gold on a prospective package of mineral tenements in Western Australia. The Company’s projects are also prospective for lithium and base metals.

GSM’s projects are located at Cue, a premier gold mining district in the Murchison region, Yule in the Pilbara and Four Mile Well near Laverton in the Eastern Goldfields.

GSM secured these projects due to their prospective geological settings within proven mineralised areas, and their lack of previous systematic and dedicated modern exploration.

Investment Highlights

Rights to three prospective Western Australian gold projects

  • Option to acquire 100% of a gold project near Cue comprising 31 granted tenements (including eight mining leases, prospecting licences, and miscellaneous licences) and two applications (a mining lease and a prospecting licence), together with small-scale gravity plant, infrastructure and equipment on site (“Cue Option Assets”)

  • Three exploration licences considered prospective for gold, lithium and base metals near Yule (“Yule Project”)

  • One exploration licence near Laverton considered prospective for gold (“Four Mile Well Project”)

  • The Company has also applied for 27 prospecting licences in the vicinity of the Cue Option Assets (together the “Cue Project”)

The Cue Project is GSM’s flagship project, which offers multiple large gold system opportunities

  • The Cue Project covers 46km² of ground in an underexplored area of a proven Western Australian gold region

  • The Cue Project consists of four separate groups of tenements being Cue (includes the Light of Asia prospect), Webb’s Patch, Great Fingall South and Maguire’s Reward

  • GSM is targeting both high grade underground and bulk open pit gold mining opportunities

Located in a significant gold mining region

  • The Murchison region has produced over 7Moz of gold over the past 100 years

  • Nearby significant projects include Day Dawn/Great Fingall Trend (1.7Moz) and Big Bell (2.8Moz)

  • There is available access to key infrastructure due to the extensive mining in the immediate project region

  • Cue is approximately 80km north of Mt Magnet and 116km south of the regional centre of Meekatharra

Brownfields project with some historical mining

  • Historic underground mines operated at the Cue Project exploiting high grade material

  • The Cue Project has existing granted mining leases that may reduce the timeframe to production

High grade Light of Asia prospect

  • Light of Asia is a granted mining lease with previous RC drill results that include 6m at 33.8g/t Au (from 24m), 1m at 67.6g/t Au (from 86m), 12m at 6.5g/t Au (from 64m) and 3m at 12.4g/t Au (from 93m)

  • There has only been limited shallow historical drilling at the Light of Asia prospect

Underexplored with upside potential

  • Immediate exploration targets include high grade extensions of historic mines, bulk potential of The Patch and Cue deeps Greenstone below the granite

  • 2D seismic work has revealed previously undefined greenstone rocks below the granite, which was historically information that was unavailable

  • GSM will drill extensively over the coming months

The attached Term Sheet provides further information on the Company and IPO.

Funds raised via the IPO will be used for exploration funding, project acquisition costs and general working capital. Further details can be found in section 4.7 of the Prospectus.

An indicative timetable for the IPO is set out below:

GSM Dates 10.9.18.PNG

DJC will be entitled to earn a fee of up to 5% plus GST of the value of Shares subscribed in this IPO. For example, for an allocation of $10,000, DJC will receive $500 of which the Adviser will receive $187.50. DJC will be entitled to a portion of 1,962,560 broker options exercisable at $0.25 expiring four years from the date of issue as outlined in Section 12.6 of the Prospectus.

Please ensure you contact your Adviser by the deadline of 10.00am WST Thursday, 13 September 2018, if you are interested in further information.

This information is general advice only, which has been prepared without taking account of your objectives, financial situation or needs; and because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.