Stratum Metals to list on ASX today, momentum at its sideStratum Metals to list on ASX today, momentum at its side

Stratum Metals (ASX: SXT) will list on the ASX today and list on the boards today at 12.00pm EDST (9.00am W.S.T).

A total of 22,525,003 shares will be listed today.

The company has completed a fully subscribed IPO funding for 20 million shares at $0.20, raising $4 million with E.L. & C. Baillieu as lead manager and distribution support from Bell Potter Securities and Wilson HTM.

Total issued capital will be 41.15 million shares, consisting of 16.1 million vendor shares, 5.050 million pre-IPO seed shares and 20 million IPO shares, providing $4.3 million in cash.

Stratum looks to have some momentum at its side at listing given these main points: strong day on Wall Street overnight; the float attracted more than $4 million; very strong support from the broking community; the directors have successfully listed ASX companies recently and the company has a drill rig ready to turn at the company's Gidgee Gold prospect in October.

Gidgee Gold Project

The Gidgee Gold Project is located 640 kilometres northeast of Perth, and is within an established mining region with a long history of gold production.

The project consists of E53/1440 at Gidgee South covering 7,500 metres of strike line on the Tokay Shear, and is 8,000 metres north of Panoramic Resources (ASX: PAN) Gidgee Gold Project, which has a mining camp and process plant with a capacity of 600,000 tonnes per year of ore.

Stratum's plan is to fast track development of gold resources at Gidgee North and most likely strike a deal to utilize a nearby plant for ore processing.

With first drilling at the project due to commence in October, and a second campaign to start in December there exists potential for earlier low cost production given a nearby gold treatment plant.

Canning Basin Coal Assets

Coal interests are held in an 80/20 Joint Venture with State Resources at the Canning Basin Coal Project, which is located approximately 150 kilometres southwest of Derby, in the Kimberley Region.

Stratum owns three exploration licences that are still in the application phase.

The Canning Basin is the largest onshore sedimentary basin in Western Australia, and is an emerging coal province.

The project area is less than 20 kilometres from Rey Resources (ASX: REY) Duchess Paradise Project which hosts an Inferred Resource of 535 million tonnes of coal.  Rey has fended off two takeover offers for the company, indicating the demand for coal from Asian interests.

The main coal bearing strata within the basin is known as the Lightjack formation, which is contained within the Fitzroy Graben that covers the northern end of the Canning Basin.

The Stratum Metals Joint Venture includes applications for E04/1993, E04/2124 and E04/2125 covering an area of 465 square kilometres that are all located within the Fitzroy Graben, and cover known outcrops of Lightjack formation, and are in the vicinity of modest intersections of sub bituminous coal reported by Rio Tinto (ASX: RIO) from historic exploration within the Canning Basin.

One of the best ways to gauge success of an IPO is if shares in the float are hard to come by.  With that premise and above factors (assuming markets are kind) Stratum Metals looks one to watch.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20568/stratum-metals-to-list-on-asx-today-momentum-at-its-side-20568.html