Ilala Metals Planning ASX IPO, Aiming to Progress Uranium and Copper Projects

Uranium-focused Ilala Metals is looking to raise AU$5 million via an initial public offering (IPO).

The company said on August 12 that it has opened its IPO, and will be able to take up to AU$3 million in over-subscriptions, potentially allowing it to raise as much as AU$8 million. Its proposed ASX code is IL1.

Proceeds will mainly go toward exploration and initial drilling at Ilala's Botswana-based Serule uranium project.

“We’ve been preparing for this particular time very carefully," Managing Director Richard Henning said. He added that Ilala is looking to raise the funds by the end of August, and said a prospectus is available online.

The company has completed 1,062 metres of drilling at Serule, with grade-confirming analysis planned after the IPO.

Serule is located next to Lotus Resources' (ASX:LOT,OTCQX:LTSRF) Letlhakane project, one of Africa's largest undeveloped uranium properties. Lotus is currently working on an updated resource estimate for Letlhakane.

“We’ve already drilled eight holes on the fence line between ourselves and Letlhakane," said Henning. "We don’t have the assay results yet, but the downhole drilling results tell us that we have mineralised zones in seven of those holes.”

In addition to Serule, Ilala has the Central copper project in Botswana's prolific Kalahari Copper Belt.

According to Ilala, the asset is located less than 10 kilometres from the Zone 9 discovery at the Khoemacau copper mine. Khoemacau was recently acquired by MMG (OTC Pink:MMLTF,HKEX:1208) for US$1.88 billion.

“We are exactly on the same trend line, exactly the same formation contact point where all the previous copper contacts have been copper deposits," Henning explained. “If you’re not on that formation line, you’re not going to find copper"

If Ilala's plans proceed as expected, the company will be listed on the ASX in September.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.