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Erris looks to London for IPO
Posted on Thursday, 07 December 2017 15:18
Privately-held mineral explorer and developer Erris Resources is taking the plunge on an initial public offering (IPO) in London despite a slew of listing hopefuls pulling out of their decision to float in recent months
The Buckinghamshire-registered company was formed in 2013 by David Hall, chairman of Horizonte Minerals and founder of Stratex International.
Hall is the leading shareholder with a pre-IPO stake of 45.3 per cent and is followed by Archean Capital, a private market investment platform established by Veritable and Moelis Asset Management, with 6.4 per cent.
Erris’ portfolio is currently focused on two geographic areas; the first comprises six fully-owned exploration licences in Ireland for economic zinc mineralisation, with ancillary lead, silver and copper potential.
The prospect is at Abbeytown, County Sligo and was the site of a lead mine in the 1950s and 1960s; according to the Irish Independent in July, drilling work has indicated there is a potential new zone at this location.
In the article, the newspaper said Erris had already given investors two scenarios; an IPO worth GBP 3.50 million to release GBP 1.50 million for project, or one valued at GBP 5.00 million, with GBP 2.80 million for the work.
The Independent added the top end of the scale would give the explorer a market capitalisation of GBP 9.70 million on a fully diluted basis.
With regards to the second geographical focus, Erris has entered into a strategic alliance with Centerra Gold’s subsidiary Centerra Gold KB covering a defined area of interest for gold in northern Sweden.
According to Zephyr, the M&A database published by Bureau van Dijk, 41 global miners – focused on gold and silver or copper, nickel, lead and zinc – have announced completed plans to list this year.
Lee Downham, head of Ernst and Young’s global mining & metals transaction advisory services, told Reuters in October it is tough to hold mining IPOs as the price recovery is still in the early stages.
© Zephus Ltd