Williams Plans Dacian Gold Float
Nick Evans, The West Australian
October 16, 2012, 6:23 am
Former Avoca Resources boss Rohan Williams is plotting a new Goldfields float as the chairman of Dacian Gold, which has lodged plans for a $20 million initial public offering. Mr Williams was the founding managing director of Avoca in 2002, leading the company into its merger with Canada's Anatolia Minerals to create one of the biggest Australian-listed gold producers. He stepped down from an executive role at the renamed Alacer Gold late last year.
If fully subscribed, the Argonaut Securities-backed IPO of Dacian would be the biggest mining float since the $34 million May listing of Cuesta Coal. Dacian's major asset is the historic Mt Morgan project, which produced more than 1.3 million ounces of gold since first discoveries in the region in the late 19th century.
Mt Morgan was last seen in the hands of Range River Gold before Range River slipped into administration in April last year. After buying the project from Barrick Gold in 2009, Range River managed to produce only 20,606 ounces before running out of cash.
In a prospectus lodged with the Australian Securities and Investments Commission, Dacian said it had acquired the project from Range River's receivers in January, and planned to spend $11.4 million on exploration over the next two years in an effort to extend the project's existing mineral resource of 842,000oz, based on an ore body grading an average 3.1g per tonne gold.
Mr Williams, who will have a 5.3 per cent stake in Dacian, is joined on the board by former Avoca chairman Robert Reynolds, GR Engineering chairman Barry Paterson and former Bright Star Resources technical director Paul Payne, who will serve as the new company's managing director.
Dacian is offering 40 million shares at 50¢ a pop. The newly issued stock will equate to 42 per cent of Dacian's expanded capital and value the gold play at $48 million.
Dacian expects to start sharemarket trading in early December.