IPO Watch | Northam Resources

Northam Resources is seeking to raise up to $9m as part of its IPO to expand exploration at its tenements in the southwestern region of Western Australia. Its prospectus has been lodged with the Australian Securities and Investment Commission (ASIC) with the aim to launch on the ASX in mid-December. 

The company is one of the largest tenement holders in the Northam region, including a tenement package of 24 granted exploration licences totalling 1590.23 square kilometres.

The project portfolio is grouped into four major project areas: Kauring, Mount Joy, Ragged Rock and Yerecoin North.

The nickel-copper-PGE potential of mafic-ultramafic complexes across its projects has attracted significant investor interest, including from its neighbour Chalice Mining, which has committed $1m to the IPO. 

Speaking to Stake, Northam CEO Craig Moulton said Chalice will spend up to $4m over four years with Northam, which could then turn into a joint venture. 

“It really vindicates our technicals beyond the project and the viability going forward. They wouldn't be investing in this style of mineralisation if they didn’t see the opportunity,” Mr Moulton said. 

Northam wasn’t always seeking new age minerals, and actually began life as an iron ore company before discovering there was more money to be made in newer materials. 

“We have done extensive research in the area, but it was all focused on iron ore. We realised the massive potential of other mineralisation in this area, and that is where we are now looking,” he said. 

The company is focused on the metals that are essential to the current energy transition, like nickel, copper and PGEs. 

“Nickel is used in stainless steel but it's also a major component for lithium-nickel batteries. Then you have copper which is used in new electric vehicles and of course PGEs which are not only in electric vehicles but also combustible engines.”

Mr Moulton says that post-IPO the company would continue to deploy boots on the ground and resume all exploration activities: “We have run some airborne electromagnetic surveys which have given us some credible targets for drilling, which we will undertake next year.”

Northam Resources will list on the ASX in December under the ticker NRL.