CGN Resources Ltd (ASX: CGR) is an exploration company based in Western Australia that listed on the Australian Securities Exchange (ASX) on 18 October 2023. It raised $10 million in an offer that was oversubscribed.
Its flagship undertaking is the Webb Project in northern Western Australia in the West Arunta Region, an area recognised for its strong potential for copper, gold, nickel and speciality metals. The Webb Project is a 948 square kilometre package of tenements and is largely unexplored but which is surrounded by major mining companies and exploration companies, some of which have already made significant discoveries. As well as copper, gold and nickel, there is also the prospect of rare earths on the site.
Stan Wholley, managing director of CGN, says listing on the ASX has enabled to company to take the next step in its exploration activities.
“We know we have a high quality site but exploration is a multi-year process and it was essential to have a strong balance sheet in order to take full advantage of the opportunity ahead of us.
“We needed to be able to take a technical and methodical approach to exploration in order to deliver results – we knew we had a great landholding but we needed the funding to deliver and execute.
“The board was in unanimous agreement that an IPO was the right path for us.”
Mr Wholley said that overall, the process of becoming a public company went smoothly.
“The management team was familiar with what an IPO entailed, and while it was a learning experience, it was also an enjoyable and worthwhile one.
“As a private company, we had always acted responsibly and had high governance standards, so the transition to being a public company was relatively smooth.
“The company was already audited every year, and we had strong compliance systems and processes in place.”
To achieve a successful IPO, Mr Wholley said that it is vital to have an experienced advisory team to navigate the process.
“We ensured we had advisers who understood our business and what we are offering, and who had been through the IPO process many times before.
“The team we put together knew their own roles inside out and also had a good understanding of the resources space.
“In particular, our advisers from HLB Mann Judd did a great job, working in a very tight timeframe. They were able to deliver the work at a high standard in full compliance with what we had asked them to do.
When you are closing out the IPO paperwork and you are under pressure, it’s great to get that kind of support.
“In addition, we have a well-structured board and technical team and this helped make the process run smoothly.
“It’s also important to be clear about what you are going to do, both before and after the public listing, and to follow through on promises.
“Overall, the IPO process was a positive experience, thanks to the expertise we had supporting us. We started the process in mid-July and listed in mid-October, on time and on budget,” Mr Wholley said.
Since listing, CGN Resources has been able to more easily formulate its future plans and commit to them.
“We now have the opportunity to deliver on the potential of the Webb Project and we’re looking forward to a busy year of exploration where we can refine what we know, make more discoveries along the way, and continue to deliver results.”
This case study was first published in the 2024 IPO Watch Australia Report.