KEY POINTS:
New Zealand mineral explorer King Solomon Mines has closed its initial public offering oversubscribed, raising A$10 million ($11.5 million) on the Australian Stock Exchange.
The IPO included A$2m in oversubscriptions. King Solomon, which has mining prospects in Chinese-controlled Inner Mongolia, raised a similar amount last year when it placed shares to high net worth individuals.
"The board is very pleased by the enthusiastic response from investors to the capital raising," chairman John Quinn said.
"The company is now finalising plans for the recommencement of field activities in Inner Mongolia and to acquire additional opportunities in this highly prospective but under-explored region."
King Solomon's largest shareholder is Mongolian entrepreneur Fu La, who has helped the company negotiate regulatory and licensing issues.
Drilling of existing prospects was expected to begin this quarter, with results produced in the company's September quarterly report. King Solomon has a possible giant copper deposit as its main target, and gold and nickel as secondary targets.
The company bypassed the local market despite having New Zealand shareholders, because of the New Zealand Exchange's lack of depth in the mining sector. Australia and Toronto are the main markets for raising capital for mining stocks.
The company was founded after Auckland geologist Bruce Bell had a chance meeting with Mr Fu in 1999 in Inner Mongolia.
- NZPA
