InterGroup Mining Limited (“IGM”) has provided an update stating that the recent progress since the last communication has been significant, and we bring you an important update on IGM’s strategic journey towards becoming a publicly listed entity.
Major Steps Towards Public Listing:
IGM has signed a Letter of Intent with Transition Opportunities Corp (TSXV: TOP.P) to complete a transformative reverse-takeover (RTO) on the Canadian TSXV stock exchange. This move is set not only to position us on the TSXV but also sets the stage for a dual listing on the NYSE.
Our listing target is the fourth quarter of 2024, reflecting our steadfast commitment to growth and shareholder value.
Strategic Reasons Behind Our TSXV Listing Choice:
- Global Exposure: The TSXV is recognized for its substantial mining company listings, comprising 40% of the global mining market, significantly larger than AIM.
- Dual Listing Gateway: The RTO facilitates a smoother transition to pursue a dual listing on the NYSE, the world’s largest stock exchange, promising broader visibility and liquidity.
- Valuation and Timing: Our anticipated market valuation is expected to align with the last shareholder update. The timing supports our strategic growth and market readiness.
- Minimal Dilution: Using this route ensures cash preservation upon listing and will only cost 2-3% dilution.
Regulatory Progress:
We are currently converting our JORC compliant reports to the North American equivalent, 43-101 Technical Report, ensuring compliance with stringent market requirements. We are also undergoing a requisite audit to meet regulatory standards. Lastly, Transition Opportunities Corp (TSXV: TOP.P) will suspend trading as of Monday, August 18th, 2024, in anticipation of the RTO.
Mining Evaluation:
As reported previously, IGM is working towards completing a Definitive Feasibility Study after our Scoping Study confirmed an After-Tax Net Present Value(5%) (NPV) of AUD$3.1B (CAD$2.72B) with a compelling 35% Internal Rate of Return (IRR), on only ~5% of the concession area. Separate to this is the evaluation of the gold deposits and other critical minerals which are part of a planned expanded drilling program.
Financial Backing:
Once listing is complete, IGM expects to action the AUD$96M post-listing support offered by GEM Yield, New York and an additional AUD$15M from a prominent Middle East family office. IGM is also in the process of conducting a private placement to raise additional capital from a combination of debt funds, investment banks, and private equity firms. Pre-export finance is also expected from offtake partners, once these agreements are finalized.
Upcoming Capital Raise & Shareholder Participation:
Reflecting on the feedback from our last shareholder update, there is strong enthusiasm for a more significant market presence. The public listing will help to facilitate this. Prior to this, we are planning a very limited capital raise of AUD$6 million, on a first-come, first-serve basis. This opportunity allows you, as valued shareholders, to further augment your investment, on a discounted pre-IPO basis, if this is of interest. Please reach out to us for further details as this raise is likely to be filled shortly.
Building for a Future on the NYSE:
Optimal timing for NYSE is aligned with the commencement of production activities in our kaolin and further enhanced with revenues expected from our gold and critical mineral deposits. The board and management will also be expanded, in the process. This timing is designed to capitalise on the expected uplift in our share price, driven by our operational milestones.
In Summary:
- A Letter of Intent is in place for an RTO on the TSXV.
- Our immediate focus is securing the TSXV listing, followed by scaling our production capacities.
- Our approach to springboard from the TSXV to the NYSE listing is strategic.
- We anticipate a dual listing on the NYSE at the optimal juncture, coinciding with production milestones and market readiness, to maximize shareholder returns.
- A very limited capital raise of AUD$6M is underway, offering existing shareholders an opportunity to deepen their investment at a discount to the IPO price, reinforcing our shared path to success.
Next Steps:
We are committed to transparent and frequent updates as we navigate this exciting phase.
Caution Regarding Forward-Looking Statements:Please be advised that this update contains forward-looking statements which are subject to market conditions and necessary regulatory approvals. While we are optimistic, these projections are speculative, and we advise shareholders to maintain a balanced perspective.
For More Information: We thank you for your continued support and trust. Detailed information regarding this transaction, including comprehensive reports and analysis, will be available in our forthcoming press releases and shareholder meetings. We remain committed to keeping you informed as things progress.
About InterGroup Mining
Intergroup Mining Limited is an Australian company focused on exploring and extracting minerals essential to delivering a net zero emissions world. Its current focus is on developing a major high-quality kaolin and gold project located in NE Queensland, Australia, approximately 250 kilometres from the major seaport of Townsville, west of Charters Towers, and immediately north of the gold bearing district of Pentland.
