Superior Gold Inc. plans to be one of the first IPOs of 2017, after announcing a preliminary prospectus with the securities regulatory authorities in each of the provinces of Canada, except Quebec.
The Corporation intends to raise gross proceeds of up to C$14.5mln at a price of C$1.00 per share. The definitive price will be determined in the context of the market. The closing date for the IPO is expected to occur during the week of February 6.
The shares will be sold on an agency basis by a syndicate of agents led by GMP Securities L.P., as lead agent and sole bookrunner, and including BMO Capital Markets, Cormark Securities Inc., Haywood Securities Inc., TD Securities Inc. and Sprott Capital Partners who are acting as agents.
Superior Gold's principal business objectives are the acquisition, exploration, development and operation of gold resource properties. The Corporation's principal asset is the Plutonic Gold Operations, located in Australia, which it acquired from Northern Star Resources Ltd. on October 12.
The Plutonic Gold Operations include the Plutonic Gold Mine which is a producing underground operation with a central mill, the Hermes open pit development project and an interest in the Bryah Basin joint venture.
In total, the Corporation holds interests in approximately 64,374 hectares (644 km2). For the 12-month period ended June 30, the Plutonic Gold Mine produced a total of 64.9 koz of gold. The Corporation's near term objectives are to increase mineral reserves and mineral resources and re-establish the Plutonic Gold Mine as a stable gold producer capable of producing 100,000 oz of gold annually.
The net proceeds from the IPO will be used to fund (i) exploration expenditures at the Plutonic Gold Mine, (ii) development capital at Hermes, (iii) earn-in expenditure at Bryah Basin, and (iv) general corporate purposes.