Allup Silica Ltd (ASX:APS) has made its ASX debut today following the completion of a fully subscribed IPO which raised $5 million through the issue of 25 million shares at an issue price of 20 cents per share.
The silica sand explorer hit the boards under the ticker ‘APS’, trading in the range of 17 cents to 21 cents per share with more than 2.6 million changing hands.
With listing under its belt, Allup is now focused on the development of its Sparkler Project which includes ongoing exploration and updating of its minerals resource estimations to higher levels of JORC compliance.
Looking ahead, the company aims to continue to explore new silica exploration opportunities and where appropriate, other mineral exploration opportunities to grow its portfolio of projects.
Growing global demand
Commenting on the successful listing, Allup executive chairperson Andrew Haythorpe said: “On behalf of the entire Allup team that has been working hard behind this company to get it to a successful ASX listing, I thank all our new and existing shareholders for their confidence in us.
“I am now very much looking forward to working hard to progress the Allup strategy, aiming to become a leading supplier of premium silica sands to meet the growing demand of global markets.
“This is a most exciting time for the silica sands sector, and we look forward to bringing shareholders along this journey and building a strong, safe and sustainable industrial minerals business.”
Use of funds
Allup will use funds raised from the IPO to progress exploration programs and evaluation studies on its projects including:
- Allup proposes to continue its exploration and development program at the Sparkler location within the South-West Project. Previous exploration and drilling have indicated the presence of silica sands with high levels of silica purity, and additional work is justified to fully test the potential project and economic viability of any proposed mining activities.
- The company has also proposed to conduct an exploration and development program at the Cabbage Spot location at the Argyle Project. This is based on the sampling results that indicated the presence of silica sands in this region with high levels of silica purity, and additional work is justified to fully test the potential project and economic viability of any proposed mining activities
- Exploration for silica sand on the Dune Buggy tenement of the Esperance Project is at a very early stage with no drilling yet undertaken. The company is working toward obtaining the approvals required to progress exploration to the next stage.
- The Esperance Project's Pink Bark tenement is still in the early stages of silica sand exploration. The company has received the necessary written consent from the relevant landowners, and now that this step is complete, the Company will seek the approvals required to progress the exploration to the next stage.
Experienced Board
Allup’s Board of Directors consists of executive chair Andrew Haythorpe, executive directors Nicholas Revell and Gavin Ball and non-executive director Campbell Smyth who together have a strong track record in the mining industry from mineral discovery through to development and production and are well placed to ensure Allup delivers on its plans:
- Andrew Haythorpe has had a long professional career in the resources industries as a geologist, analyst and company director, including many directorships with executive responsibilities. Andrew currently holds the position as executive chairperson and founder of the company. He is also a non-executive director for Tempest Minerals Ltd (ASX:TEM) and managing director of Goldoz Limited.
- Nick Revell has had an extensive and respected professional career as a geologist, and he has also held several directorships since his career began. He has held several senior positions in mining and exploration private, ASX-listed and TSX-listed companies. Nick is currently working as a geology consultant and has been a founding director of the company since May 2020
- Gavin Ball is a business manager who has over 30-years of hands-on skill and intellectual expertise in the start-up, commercial development, growth and ongoing management of businesses. Gavin currently holds the position of commercial director for the company as well as holding directorships of Stunalara Metals Limited and listed RLF AgTech Ltd (ASX:RLF).
- Campbell Smyth’s professional career has been in the provision of advice to fund management, capital markets and the corporate finance sector. This experience has been with most major markets, primarily the ASX, and listed and unlisted companies in North America and Europe.
Prospective portfolio
Allup's portfolio comprises of silica sand assets situated across four project locations in Western Australia.
The project sites are in the South-West, one is in the North-East near Wyndham, with a further two prospective project sites in the Southern Goldfields near Esperance.
Project locations
What is silica ?
High-grade silica sand is an essential raw material in the world’s industrial development, particularly in the specialised glass, photo-voltaic panels and many other industries. High-grade silica sand contains a high portion of silica (over 98% SiO2) and is used for applications other than construction aggregates.
Unlike construction sands, which are used for their physical properties alone, high grade silica sands are valued for a combination of chemical and physical properties. Ongoing economic and infrastructure development in the Asia/Pacific region is expected to drive growth.
Glassmaking silica sand is the primary component of all types of standard and specialty glass. It provides the essential SiO2 component of glass formulation; its chemical purity is the primary determinant of colour, clarity and strength.
Industrial sand is used to produce flat glass for building and automotive use, container glass for foods and beverages, and tableware.
In its pulverised form, ground silica is required in the production of fibreglass insulation and for reinforcing glass fibres. Specialty glass applications include test tubes and other scientific tools, incandescent and fluorescent lamps.