Bryah Resources Ltd. had to extend its A$6.0 million IPO, but the Australian copper-gold explorer is confident it will raise the targeted amount and list on the ASX.
"May and June are notoriously difficult to raise capital in and so just getting spread has taken quite a bit longer than we hoped because of the market conditions," Managing Director Neil Marston said in an interview.
"Rather than narrowing our investor base, we just pushed the date back, let everyone relax and get through the end of the financial year, and then we expect that come [July 1] there will be a lot more commitment."
The Perth-based company was initially hoping to close its IPO by May 24 and has now extended it to July 12.
Bryah has until July 26 to list on the ASX, and Marston said the plan is to begin trading in the last week leading up to the deadline.
The company owns 713.8 square kilometers of exploration ground in Western Australia's Bryah Basin and has acquired a suite of mineral rights to tenements covering 202.3 square kilometers held by Australian Vanadium Ltd.
The two areas, which are prospective for copper-gold resources, make up the Bryah Basin and Gabanintha projects.
The key focus for Bryah is the Gabanintha project, where the company will conduct a first-phase 20-hole drilling program immediately after it completes its IPO.
"Just before we list we will be doing the heritage survey so that we can start drilling in August at Gabanintha," Marston said, "The plan is to drill to follow-up some exploration results which were achieved in 2013."
Australian Vanadium drilled several holes in an area known as Tumblegum South in 2013 that returned intersections of 5 meters grading at about 9 g/t gold and up to 3% copper.
Bryah has identified three zones at the Tumblegum South prospect and will drill test them with the aim of proving up a resource within the first 12 months post-IPO.
"We'll do an initial program at Gabanintha, which depending on the results from that will then dictate follow up drilling plans, but I expect we'd be back at Gabanintha before Christmas this year for a second pass, and then using the results of that early  to get a JORC resource estimate together," Marston said.
Bryah has approval from the Western Australian government to drill up to 70 holes at the Gabanintha project.
The company is also conducting target evaluation work for the Bryah Basin project and aims to have a detailed drilling program, including reconnaissance aircore drilling and more targeted deeper drilling, finalized by the time it lists.
Bryah wants to fast-track a low-CapEx operation at Gabanintha and is considering toll treatment deals with nearby gold mines.
Westgold Resources Ltd.'s Bluebird mine, part of the Central Murchison gold operation, is within 30 kilometers, and Canadian company Monument Mining Ltd. is working to recommission the gold plant at the Burnakura operation, which is about 20 kilometers away.
"There's a couple of processing plants there which will be treating 2 to 3 [g/t] ore, and so we're aiming to prove up a nice resource, which hopefully will hang together, with a view to a mining operation on that being established very quickly and having material processed through one of these nearby plants," Marston said.