In January 2018, Ausroc Metals Ltd, renamed as Woomera Mining Ltd (WML), lodged a Prospectus with regards to an Initial Public Offering. Woomera targets to raise A$7,000,000 of total funds through the offer entailing 35 million fully paid ordinary shares at A$0.20 per share. The group has appointed Sequoia Financial Group and Adelaide Equity Partners as its joint mangers. Closing date of the offer is 15 February 2018.
 
The group has some interesting South Australian Projects including the World Class Gawler Craton Projects and Musgrave Projects. WML holds 5,584 km of highly prospective assets within the Gawler Craton and Musgrave Provinces. If we talk about Musgrave Projects, 12 exploration drill targets were identified which were based on historic geophysical and geochemical data. Woomera earned 8% of management fees which was payable by OZ Minerals under binding heads of agreement over the Musgrave Project. WML will also capitalise on recent Pilbara gold and lithium exploration activities which has further stimulated investor interest in the region.
 
Post this offer, the estimated market capitalisation will be $25.4 million at maximum subscription. The key purpose of the offer is to fund a preliminary exploration program on the Pilbara lithium asset and also to fund the preliminary exploration and maintenance cost of the other tenements. It will also help the Company to meet the ongoing administrative cost or working capital for the next 2 years. It will also complete the part-cash or part-scrip consideration for the acquisition of Volt Lithium and Liquid Lithium. It provided an excellent exploration position in the Pilgangoora area which hosts several lithium deposits.
 
The Company’s business model is to develop, add value and monetise the cobalt and coper projects in South Australia and Lithium Projects in Western Australia. The purpose is also to undertake those activities either as a sole explorer, as a funder or a manger of the relevant operations or through farm-in agreements and joint venture arrangements with large mining companies. Its tenements also provide the Company with the strong exposure to several strategic and expanding metal markets, namely copper, nickel, cobalt and lithium.
 
Looking at the offer, the investment seems to be subject to a range of risks which include but not restricted to exploration and development. It is also subject to some environmental and governmental regulations. While several group-level and sector-driven risks prevail; considering the overall downturn in the market at a macro level, it would be prudent to watch out for some key positives and/ or initial performance before investing.
 

Company Structure (Source: Company Reports)

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