Ashby Mining has launched an IPO in a drive to restart the Black Jack processing plant and start producing gold from a raft of Charters Towers district tenements that includes the Far Fanning mine.

The company aims to raise $12.5 million to $15 million through the IPO and list on the ASX by the end of April.

The aim of the exercise is to ‘get mining’ , according to chairman Ian Mathieson.

“We have a lot of land there, a lot brownfield older mines and open-cuts that haven’t been pushed any further,” he said. “We’ll start with Far Fanning and we have the (Black Jack) plant to commission and get underway.”

Ashby Mining is targeting a start to mining at Far Fanning, 45km north-east of Charters Towers, in the last quarter of this year and plans to commission the 340,000 tpa Black Jack plant around the same time.

Dewatering is already underway at the Far Fanning pit and a drill campaign is planned to firm up the mineral reserve for mining.

Mr Mathieson said it was expected to cost about $3 million to recommission the Black Jack plant and that Ashby had already lined up key items required.

It will initially carry out toll milling before Ashby’s own ore comes into play.

Restarting the Hadleigh Castle mine and mining operations within the Black Jack lease at Charters Towers are also listed as near-term priorities for the company.

Ashby Mining also sees considerable exploration upside along the 14km long Rishton Mine Corridor Structure (RMCS) outside its Hadleigh Castle mining lease.

Mr Mathieson said Ashby hoped the activity that came on the back of its capital raising would enliven the gold-rich region.

“Prior to 20 odd years ago this was the largest gold producing area in Australia … until Kalgoorlie picked up the way it has,” he said.

“We’re excited about exploration long the Rishton Mine Corridor where Hadleigh Castle is located, and we have 600-odd square kilometres of land that has been underexplored, under-drilled.

“We have a number of targets in mind, but obviously the first two are Far Fanning and Hadleigh Castle.”

Those two sites between them have an averaged JORC resource of 4.731 million tonnes grading at 2.5g/t gold for 384,400 ounces of gold.

The proceeds of the IPO will be used to finalise Ashby’s acquisition of Maroon Gold (which holds the Black Jack mill and Far Fanning) and fund mine development in preparation for mining and processing operations.

The Hadleigh Castle gold project and exploration leases are owned by Denjim. That company along with Ashby Mining and its subsidiary AMDR Operations are party to a tribute mining agreement whereby AMDR Operations is entitled to develop the project and retain a percentage of the profit earned.

The planned work programs include resource drilling and a feasibility study on Far Fanning. Drilling is also planned to commence at Black Jack and then Hadleigh Castle.

The prospectus has been issued for an initial public offering of a minimum of 62,500,000 shares and a maximum of 75,000,000 shares to be issued at a price of $0.20 per share. The offer is partially underwritten to $10 million.