[Tungsten] Wolf Minerals begins trading at premium
Source: Associated Press
metalsplace.com
The share price of minerals explorer Wolf Minerals Ltd more than quadrupled after the company began trading on the local bourse.
The shares opened at 65.5 cents, up from the 20 cent initial public offer price, before ending up 320 per cent at 84 cents.
Wolf managing director Humphrey Hale said he was pleased with the performance.
"We did expect it to come on well, but we didn't expect it to do as well as it did," he said.
The Perth-based company had raised $3 million by selling 15 million shares, and will use the proceeds to make an immediate start on exploration and evaluation of its tungsten and tin projects in New South Wales.
Asked if the company could have offered more shares, Mr Hale said it had sold the right amount.
"The share price has gone up and benefited all of the shareholders," he said.
Mr Hale noted that Wolf's assets came from explorers Graynic Metals Ltd and Ironbark Gold Ltd, whose shareholders also bought into the offer.
"The reason for that is they were not creating value and were better served in another company," Mr Hale said.
"I, myself, am a geologist. I am able to drill and expand these to their capability."
The company holds rights to three exploration licences over specialty metal projects in New South Wales.
It owns two licences for Kiawarra, 35km north east of Yass near Canberra, and at Burrandana in the south-east part of the Riverina and all of tin-tungsten mineralisation at Yanco Glen, near Broken Hill.
Mr Hale said shareholders from Graynic Metals and Ironbark Gold had first option on the shares offering under the initial sale. |
