Trigg Mining Limited

About the company: Trigg Mining Limited (Proposed ASX Code: TMG) is a Perth based exploration company exploring for Sulphate of Potash (SOP), which provides necessary nutrients for agricultural food production and human health. SOP is particularly important for chloride sensitive crops such as fruits and vegetables, coffee, cocoa, flowers and all crops under glass. It is also important in arid and acidic soils and is known to improve both drought and frost resistance of crops. Trigg Mining has launched its Initial Public Offer (IPO) to raise $4.5 million and apply for listing on the Australian Securities Exchange.

The company has two projects, i.e., Laverton Links Potash Project and Lake Throssell Potash Project, which cover a total area of 2,640km² of granted tenure containing more than 400 km² of playa lakes and 300 km of interpreted palaeochannels.
The company’s exploration objectives upon the completion of the Public Offer are:
 

• Laverton Links Potash Project:carrying out further exploration work to seek to expand the Exploration Target, define a JORC Compliant Mineral Resource and determine possible processing flow sheet options for the brine; and
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• Lake Throssell Potash Project:conduct a heritage survey and undertake reconnaissance exploration.
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Overview of Key Strengths:
 

• Global demand for fertiliser: Global demand for potash fertilisers is strong. The world population continues to expand whilst the area of arable land per capita is falling, placing greater pressure on increasing productivity and crop yields to feed the expanding global population.
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• Premium SOP fertiliser: Sulphate of potash contains the essential nutrients of potassium and sulphur without the addition of chloride, making it the primary choice for high-value chloride sensitive crops such as avocados, cashews, almonds, cocoa, berries, stone fruits, citrus, all crops under glass and flowers.
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• Primary source of SOP: Brine hosted SOP is the only naturally occurring primary source of SOP, with other methods of production requiring secondary chemical processing, increasing production costs.
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• Potentially certifiable source of organic SOP: Brine hosted sources of SOP are natural mined sources, with little to no processing and therefore can be potentially organically certified, essential for organic farming.
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• Portfolio of tenements: The Projects cover approximately 2,640 km² containing more than 400 km² of playa lakes and 300 km of interpreted palaeochannels.
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IPO Prospectus: The company lodged its prospectus with the Australian Securities and Investment Commission (ASIC) on 24th April 2019, in which it offers 22,500,000 fully paid ordinary shares (Shares) at an issue price of $0.20 per share to raise $4,500,000 before costs.Further, one free listed new option will also be awarded to investors for every two shares they acquire in the public offer. The offer was closed on 26 August 2019, and is expected to commence trading on 9 September 2019, Monday. The company aims to use the funds raised to continue exploration and evaluation work on its projects. Additionally, itis planning to use the IPO funds in a cost-effective manner to advance its projects and deliver on its purpose of building mines which communities can be proud of. Hence, it is yet to watch the stock as the company aims to use the entire proceeds for growth through IPO funding.
 
 
Indicative Timetable (Source: Company Reports)
 

Nemex Resources Limited

About the Company: Nemex Resources Limited (Proposed ASX Code: NXR) happens to be a junior exploration company with conditional right to acquire mineral exploration projects prospective for gold and base metals located in Western Australia, including 80% interest in each of the Leonora South East Project, the Ballard project and the Pavarotti project, and 100% interest in Lake Roe North Project.
The company intends that it will primarily be a gold and base metals exploration company, and has entered into:

• Agreement under which it has conditional right to acquire an 80% interest in the Leonora South East Project, the Ballard Project and the Pavarotti Project, and
• An acquisition agreement under which it has conditional right to acquire the Lake Roe North Project.

Capital Raising: The company is planning to raise $5 million capital by the issuing of up to 25,000,000 shares at an issue price of $0.20 per share. Following the completion of the acquisitions, the company would hold interest in the projects given below:

• The Leonora South East Project
• The Ballard Project
• The Pavarotti Project
• The Lake Roe North Project

 

Source: Company Reports


Key Advantages: Following are some of the advantages which needs to be looked at by the investors:
 

• The company provides a portfolio of quality assets in Western Australia considered by the Board to be highly prospective for gold and base metals, and
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• The company has a highlycredible and experienced team to progress exploration and accelerate potential development of the projects.
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Capital Structure: The capital structure of the company after the completion of the offer has been summarised below:


Capital Structure (Source: Company Reports)

Deployment of Proceeds: In the supplementary prospectus, the company has provided information on the usage of proceeds. It was mentioned that the proceeds from the offer would be utilised towards the exploration expenditure and assessment of the projects, costs of acquisitions, working capital and administration costs as well as costs of the offer.The closing date to subscribe the offer is 30 September 2019 and is expected to commence trading on ASX around 21 October 2019, Monday.


Key Offer Details from Prospectus (Source: Company Reports)
 

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