BMC Minerals (ASX:BMC) has begun trading on the ASX under the code BMC following a highly sought-after initial public offering that raised A$100 million at A$2.00 per CHESS Depositary Interest (CDI). The successful float gives the Canadian-focused polymetallic developer an initial market capitalisation of about A$550 million.
The IPO was supported by a strong line-up of institutions, with Barrenjoey Markets acting as global coordinator and joint lead manager, and Argonaut Securities and Morgans Corporate serving as joint lead managers.
“On behalf of the BMC Board and senior management I welcome all new shareholders and extend our thanks for the strong support during the IPO," BMC’s chairman, Steven Michael, said.
“The ASX listing is an important milestone for BMC and enables the company to continue to develop and de- risk the KZK Project to an operation of national significance for Canada and the Yukon community.
“BMC is focused on accelerating the existing workstreams at our 100%-owned KZK polymetallic project by planning a major drilling program to commence early in the new year and anticipate receiving several licences and permits from Yukon and Federal regulatory bodies.
“We look forward to executing on our growth strategy, at a time when silver, gold and copper prices are extremely strong and establishing the ABM Mine as Canada’s largest silver and zinc producer and a top 15 copper producer.”
IPO funds to progress drilling, permitting and engineering studies
The company plans to channel the new capital into advancing its flagship Kudz Ze Kayah (KZK) Project in the Yukon. Funds are allocated across exploration drilling, permitting processes, feasibility and optimisation studies, detailed engineering work and community and First Nations engagement programs.
Approximately 35% of the total funding is directed toward exploration activities, 11% toward permitting, and 17% toward detailed engineering, with the remainder covering corporate costs, working capital and offer-related expenses.
In total, BMC now holds around A$107.5 million in available funding post-listing.
Polymetallic Yukon project positioned as major future silver, zinc and copper producer
BMC owns 100% of the KZK Project, a 372-square-kilometre land package that includes the ABM and Kona deposits.
Since acquiring the project in 2015, the company has defined 27.9 million tonnes of total mineral resources across both deposits.
A feasibility study for the proposed 2-million-tonne-per-annum ABM Mine outlined a pre-tax NPV of US$835 million and an expected capital payback period of about two years, based on conservative commodity price assumptions.
Once in production, ABM is projected to become Canada’s largest silver and zinc producer and rank among the top 15 copper producers globally.
BMC plans to produce silver/gold, copper and zinc concentrates, supported by offtake agreements that already cover the majority of the first five years of anticipated output. The company has secured binding offtake agreements with high-quality partners for 95% of the first five years of production, across all three concentrate products (Copper, High Precious Metals (HPM), Zinc).
Initial construction capital expenditure is estimated at US$492 million.