Metals 479 Limited (ASX:ML7) Executive Chairman Frank Terranova discusses the company’s upcoming IPO, its key Corcoran Silver Gold Project in Nevada and plans to develop a high-quality portfolio of mining and exploration assets.
Rachael Jones: Hello. I'm Rachael Jones for the Finance News Network. Joining me from soon-to-list Metals 479 is Executive Chairman, Frank Terranova. Frank, welcome to FNN.
Frank Terranova: Thank you.
Rachael Jones: So first up, could you start by giving us a brief introduction to your company?
Frank Terranova: Metals 479 is a new dynamic company about to list on the stock exchange. Our strategy is very much about building a portfolio of assets in T-1 mining jurisdictions, and our recent acquisition is an example of that.
Rachael Jones: Now to your Corcoran silver gold project, what can you tell me about this?
Frank Terranova: Metals 479 owns 100% of the Corcoran project. It is located in Nevada, which is one of the world's premier mining jurisdictions. We're surrounded by multi-million ounce deposits, both in gold and silver, and the historical resource on this project was reported at 25 million ounces of silver, at a grade of approximately 250 grams per ton.
That would equate to a gold equivalent of around 3 grams of gold over 500,000 ounces.
The project has had in excess of 18,000 meters of drilling undertaken on it previously, and that gives us a wonderful headstart in looking to progress the project over the next six to nine months.
Rachael Jones: And now to your IPO, how much are you looking to raise, and where will the funds go?
Frank Terranova: We're looking to raise between five to seven million dollars, with the majority of those funds being applied to drilling, metallurgical testing, and validating the historical work that's previously been done.
Rachel Jones: And where can investors find out more information?
Frank Terranova: On our website, at metals479.com you can download the prospectus, or you can contact our lead arranger, being Hunter Capital, and equally contacting your stock broker.
Rachael Jones: So post-IPO, Frank, what will the company's cash position be, and what sort of head room will that give you?
Frank Terranova: On the basis that we raise $7 million, that will give us in excess of two years of runway insofar as fully funding our work program.
Rachael Jones: And now to a more general question. Why silver, and how is it possible that an area with such a long history of production could still be profitable?
Frank Terranova: Silver is a commodity that not only still represents a traditional store of wealth, it has legitimate industrial uses. And the market has been in a true deficit position over the past five to six years. So we believe the demand for silver continues to increase, and therefore we're well-placed in that particular commodity.
With respect to the region, we still believe it is extremely prospective. Coupled with the opportunity to apply modern exploration methodologies that have not been used on this project to date, we believe we have an excellent opportunity to grow the resource in a very timely manner.
Rachael Jones: Last question, Frank. What makes Metals 479 a compelling investment?
Frank Terranova: Firstly, the management team has a proven track record in delivering shareholder returns. Secondly, the asset has the potential to be one of the highest grade open-cut silver deposits in North America. And thirdly, we have a very strong growth focus, and I truly believe we can be one of the most dynamic companies to list on the ASX in recent times.
Rachael Jones: Frank Terranova, thank you very much for the update, and good luck with the IPO.
Frank Terranova: Thank you very much.