Woomera Mining Limited (ASX:WML) Managing Director, Gerard Anderson talks about the company's plans to recapitalise Ausroc Metals and bring into production a basket of lithium, copper and cobalt assets.
Jessica Amir: Hi I’m Jessica Amir for the Finance News Network. Joining me now from Woomera Mining (ASX:WMI) is its Managing Director, Gerard Anderson. Hi Gerard, welcome.
Gerard Anderson: Thank you, thank you for having me.
Jessica Amir: First up, can you just give us an introduction to the company?
Gerard Anderson: Woomera Mining started out in 2010 as Woomera Exploration Limited (ASX:WEX). And through a number of transactions and acquiring tenements, we now have a tenement portfolio of 19 tenements over Western Australia and South Australia, focusing on lithium, cobalt, copper and nickel. And we have a very experienced Board keen to commence exploration.
Jessica Amir: Now to your three key projects in a little more detail. Can you start by telling us a little bit more about the Musgrave projects?
Gerard Anderson: Musgrave Province, we’ve got four tenements right up on the South Australian/Northern Territory border. The railway line Adelaide to Darwin, goes right through the middle and we’ve identified 12 geophysical, geochemical targets that are drill ready. And more recently, we signed a Heads of Agreement with OZ Minerals (ASX:OZL) to explore on our behalf. And they will commit $7.5 million in exploration expenditure over the next few years, to earn an equity position in those tenements.
Jessica Amir: What about the Pilbara region?
Gerard Anderson: The Pilbara region, we’ve got three tenements in the Pilgangoora area, which is right at this point probably the hottest property in Australia, in fact in the world for hard rock lithium. We also have tenements around Mt Cattlin, which is Galaxy Resources (ASX:GXY) lithium mine in Ravensthorpe. And we’ve got five tenements over The Lakes areas in Western Australia, which have been identified as having elevated lithium in brines.
Jessica Amir: And your third project, Gawler Craton?
Gerard Anderson: Gawler Craton is where Woomera Exploration first started seven years ago. We identified as soon as the State Government allowed access, to what was otherwise defence ground. We were first movers in. We were able to identify some targets based on geophysics, predominantly coincident gravity and magnetic signatures, and we have three of them. And they have striking resemblance to the signatures that sit above deposits as big as BHP Billiton’s (ASX:BHP) Roxby Downs deposit, Olympic Dam and the Carrapateena iron oxide copper gold project. So we’ve got three at Carulinia, we’ve got one at Labyrinth and we’ve got another one in the Nawa domain, which await drilling.
Jessica Amir: Now to your key capital raise. Just tell us how much you’re planning to raise and where will the funds go?
Gerard Anderson: We’re looking to raise a minimum of $4 million and a maximum raise of $7 million, the money will go to exploring and our principal targets. First cabs off the rank will be at Pilgangoora and the lithium project in Western Australia, and in the Gawler Craton of South Australia. In addition to starting exploration under the OZ Minerals Heads of Agreement, which we should be on the ground in the Musgrave Province, in April of next year.
Jessica Amir: Now can you tell us about the timetable, the key turns and how people at home can get involved?
Gerard Anderson: Our prospectus was lodged with the regulators on the 5th of December. And people can access that prospectus on our website, woomex.com.au. Or they can contact our lead advisor, Sequoia Wealth Management, or they can take direction from their broker.
Jessica Amir: A more general question now. Can you tell us about your long-term strategy and what are you holding the firm to, so that you achieve that?
Gerard Anderson: We’re explorers primarily and our aim is to find, add value and monetise. Now that monetisation can be either through us developing our discoveries, or through joint ventures, or by actually selling assets. But the idea is to get on the ground and explore and to provide a steady flow of news flow, to our shareholders.
Jessica Amir: Last question now Gerard. What makes Woomera Mining so different to other junior explorers in this space, and what makes an investment in the company so compelling?
Gerard Anderson: First of all is our tenement portfolio. We have 19 tenements that cover cobalt, lithium, nickel and copper, all tremendous minerals and commodities that are required for not only today, but for emerging technologies. The second is our experience as a Board and as a company across business, across mining, across exploration. And last of all is our ability to monetise, to take early discoveries and take those either through joint venture or through sale, or through developing them ourselves.
Jessica Amir: Gerard Anderson, thank you so much for the update and good luck with the capital raise.
Gerard Anderson: Thank you very much.