Mawson Finland poised to trade on TSXV following IPO
Mawson Finland Ltd. [MFL-TSXV] said it has received final approval to list its shares after completing an initial public share offering that raised $2.87 million. Mawson said is shares are expected to commence trading on the TSX Venture Exchange on August 19, 2024.
Under the IPO, Mawson issued 2.875 million IPO shares priced at $1 per share, including 375,000 shares that were issued by the underwriters to cover overallotment options. The total amount raised was $2.87 million.
As a result of the closing of the IPO, the company now has 3.62 million common shares issued and outstanding. Additionally, 15.4 million previously issued and outstanding warrants will be deemed to be exercised (without any further action or consideration) at 5:00 p.m. Toronto time on the date hereof. Following this exercise, there will be 19.05 million shares issued and outstanding.
The net proceeds from the IPO will be expended on the remainder of the work program recommended in the revised preliminary economic assessment (PEA) on the company’s Rajapalot property in Finland.
Rajapalot is an exploration and development project that is highly prospective for orogenic-style gold mineralization systems and that currently comprises an inferred gold-cobalt resource with contained metal of 867,000 ounces of gold and 4,310 tonnes of cobalt (9.78 milllion tonnes at 2.8 g/t gold and 441 parts per million cobalt). The PEA has demonstrated potential for strong development economics, including a US$211 million after-tax NPV5 (net present value discounted at 5.0%) using metal prices of US$1,700 per ounce for gold and US$60,000 per tonne for cobalt.
The PEA shows a nine-year mine life, producing an approximate average of 78,000 ounces of gold and 311 tonnes of cobalt annually for total production of approximately 700,000 ounces of gold and 2,800 tonnes of cobalt over the life of the mine, with an all-in-sustaining cost (AISC) of US$824 per ounce of gold.
The PEA is preliminary in nature and includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
Mawson Finland is primarily focused on gold and cobalt. The company holds a 100 % interest in the Rajapalot gold-cobalt project. The Rompas-Rajapalot property consists of 11 granted exploration permits for 10,204 hectares and two exploration permit applications and a reservation notification area for a combined total of 40,496 hectares. In Finland, all operations are carried out through the company’s fully-owned subsidiary Mawson Oy. The company maintains an active local presence of Finnish staff with close ties to the communities of Rajapalot.