Norwest Minerals Limited (ASX:NWM) CEO Charles Schaus talks about the company's gold and base metal projects in WA, drill program, strategy and IPO.
Rachael Jones: Hello I’m Rachael Jones for the Finance News Network. Joining me today from Norwest Minerals Limited (ASX:NWM) is CEO Charles Schaus. Charles welcome to FNN.
Charles Schaus: Thank you very much Rachael, very happy to be here.
Rachael Jones: First up Charles, what can you tell me about your IPO?
Charles Schaus: The Norwest Minerals (ASX:NWM) IPO was launched late last month to raise $6.6 million, in order to explore our gold and base metals projects, all of which are located in Western Australia. These gold and base metal projects have been spun out of Australian Mines Limited (ASX:AUZ), as they focus on developing their very exciting battery mineral assets, located in the eastern states.
Rachael Jones: How has the IPO progressed?
Charles Schaus: The response has been terrific. I’m very happy to report that we’ve received applications well in excess of our $6.6 million IPO target.
However, we will continue to accept investments of between $2,000 and $25,000, in order to broaden our retail shareholder base.So we do encourage any retail investors wanting to participate, to submit their application and payments as soon as possible as it is likely we will close the offer, prior to the 15th of November, (the) scheduled closing date.
Rachael Jones: Could you give us an introduction to Norwest Minerals?
Charles Schaus: Norwest Minerals has gold and base metal projects located all in Western Australia. And as I mentioned, these projects have been spun out of Australian Mines (ASX:AUL), who are 100 per cent focused on their very successful nickel, cobalt and scandium projects, located in Queensland and in New South Wales.
Our Board includes our Chairman Michael Tilley who is a very experienced mining executive. We also have Benjamin Bell, who is the Managing Director of Australian Mines, and he has taken their market cap from $25 million, to over $300 million at one point this year.
The other three Board members run successful businesses in iron ore, metals trading and property development. And importantly, they are cornerstone investors who have each contributed $1 million of their own funds, at the full 20cent per share listing price.
Regarding my background, after working as a geologist in Western Australia for 20 years, I listed Aurox Resources Limited (ASX:AXO) on the ASX in 2004. I was the Managing Director until 2010, but the company merged with Atlas Iron Limited (ASX:AGO) in a script deal worth over $130 million.
Rachael Jones: Before we talk about your projects, can you tell us about your strategy timeline?
Charles Schaus: Rachael I like working in Western Australia, because there’s a deep pool of mineral exploration expertise to draw from. And this allows work to be carried out quickly and thoroughly. We plan to complete two drilling programs and a large electromagnetic program, prior to the end of this year. The results will generate news flow and more importantly, be used to help prioritise our 2019 project work.
Rachael Jones: Now to your portfolio and exploration program. Can you tell me more about the projects, your plans and their proximity to infrastructure?
Charles Schaus: Norwest Minerals (ASX:NWM) have several very exciting gold and base metal projects. However, the crowd favourite and the one with massive potential is our North Dovers target, located west of Alice Springs.
This target is defined by four by eight-kilometre coincident high magnet, high gravity anomaly.
Importantly, Norwest Minerals is the first company ever allowed access to drill this ground. And the Western Australian Government is contributing up to $200,000 toward the drilling, which consists of four 900-metre deep diamond drill holes.
Coming in second, is our Bali copper project, located in the Ashburton region of WA, being an eight-kilometre-long mineralised sheer zone having recorded intercepts, of up to six metres at seven per cent copper. Earlier this year, Norwest completed a mapping and surface sampling program that returned numerous results, exceeding 20 per cent copper in rock chips.
Our other projects include gold targets at Warriedar, which is located south of Mt Magnet. And gold and VMS targets at Marymia, which is located next to the Plutonic goldmine. Both of these projects will be drilled before the end of the year.
Rachael Jones:So what are they key dates and where can investors find out more?
Charles Schaus: The IPO was scheduled to close on the 15th of November (2018). However, depending on how quickly our retail shareholder base expands, we may close early. I would suggest those interested go straight to our website, which is linked directly to our registrar prospectus and the application forms.
Rachael Jones: Last question Charles. Why should people consider investing in this IPO?
Charles Schaus: As I mentioned, Norwest intends to complete drilling programs at Warriedar and Marymiaand complete a large electromagnetic program at Bali prior to the end of 2018. News flow and planning from these results will carry the company into 2019, when the drilling of the massive North Dovers iron oxide copper-gold target, and the eight-kilometre Bali copper sheer zone commences.
Rachael Jones: Charles Schaus, thanks for the update and best of luck for the IPO.
Charles Schaus: Thank you very much Rachael, it’s been a pleasure.