Exploration seeds planted by Mount Isa Mines are starting to sprout … but not for MIM.

Mount Isa junior Chalkos Metals has drawn on historical data to build an IPO which it plans to launch next month.

The company has lodged a prospectus with the Australian Securities and Investment Corporation for an offer of 30m fully-paid ordinary shares at an issue price of $0.20 per share to raise $6m and up to 40m shares to raise $8m.

The Company, through its wholly owned subsidiaries Nova Strategic Minerals Pty Ltd (Nova) and May Downs Resources Pty Ltd (May Downs) owns 100 percent of six exploration permits for minerals (EPM) and two EPM applications considered prospective for copper and base metals that are located adjacent to Glencore’s Mount Isa Mine and 10km from Mount Isa.

Nova and May Downs had been in private hands for more than six years said Chalkos Metals managing director Andrew Newman.

The IPO was built on four pillars said Mr Newman.

“We’ve got, certainly, the location of the prospects and the tenements being so close to the city of Mount Isa, and the minding services and potential processing infrastructure that comes with that,” Mr Newman said.

“We also, then, have assembled a really experienced board of directors. We already have exploration personnel on the ground in Mount Isa. I, myself, as managing director and executive chair, I’m based in Mount Isa.

“Realistically, the fourth pillar, for us then, is that we have a massive historical database of information. 

“We, basically, are at our 13 drill-ready targets. So what we’ve been able to do, pre-IPO, is actually commence drilling.“

The Company is currently completing a seven-hole diamond drilling program to test three of 13 priority targets identified at the Mount Isa Project. 

Drilling is expected to be completed by Q3 CY2022, with initial assay results anticipated to be available from Q4 CY2022, post the Company’s IPO. 

The tenements were previously held by Mount Isa Mines Limited. Chalkos was looking at the potential through a different lens said Mr Newman.

“We’re not looking for the sediment hosted massive sulphides that are a Mount Isa Mark 2 or MICO 2.0. 

“We’re looking at it under a very different lens, really trying to bring a mineral systems approach to the tenements and probably looking for something that’s more à-la-Cloncurry style mineralization rather than the Mount Isa copper operations of Mount Isa, ore body,

“If we can get to a point where we’ve proved up a resource, certainly we would be anticipating that the capital outlays to commence production are a lot different given that we have multiple production processing facilities in the region. So we’ve certainly got optionality on that perspective.

The board of directors was familiar with mining in the region said Mr Newman.

“We’ve got a very experienced team. In fact, one of our directors, Dr. Rick Gordon, he did his PhD on the area. And then I’ve got a very experienced field geologist, and, as I said, already on the ground, already drilling.

“I was previously the CFO for Glencore’s Queensland metals operations and I’ve worked specifically for Mount Isa Mines for over a decade.  Throughout my tenure I’ve had exposure to the Mount Isa, George Fisher, Lady Loretta and Ernest Henry mines as well as the full value chain through to the Port of Townsville.”

The IPO opens on 20 May. It’s scheduled to close on 17 June with a targeted listing date on 30 June.