WHY NOVUS CAPITAL?Novus Capital Limited is an investment and financial services company specialising in Investment Banking, Corporate Advisory and Share Trading services for Australian corporate and private clients, and overseas corporate clients.
Capital Raising of up to A$5,000,000
Company Overview
Ironhawk Resources Ltd (IHR) is a Western Australian based public unlisted company that owns 100% of the Iron Hawk Resources (Gold Operations) Pty Ltd (IHG) which in turn owns 100% of the Grace Darling Gold Mine (Grace).
Situated around 40 Km North of Kalgoorlie adjacent to the Goldfields Highway. Grace, (currently under care and maintenance since 2022) has a JORC resource of 31,000 Oz at an average grade of 11.2g/t and is highly prospective along strike and down dip. Ore processing will be done by one or more local mills under an ore sale agreement or in some cases a toll treatment.
Within six months of funding the $5m required, IHG expect to be in production and to generate a cash break even in under 12 months. The mine is fully permitted, and the equipment, buildings and infrastructure are in good condition or budgeted for repair or replacement. Current resources (JORC plus currently non JORC) are expected to have an initial mine life of at least 5 years assuming the resource is extended to around 55,000 Oz. Currently the mine is only 150m deep, quite shallow compared to other mines in the area that are mined to depths of over 500m
Internal Scoping studies estimate over the initial 5 years revenues between ~$228m and ~$277m. Free cash flow (Pre-tax) is estimated between $110m and $163m. These returns have been calculated at gold price US$2,750—20% below current levels . The same studies estimate that at Current Gold prices ROI Pre Tax over 450% for the initial 5 years or 41% pa. IHG intends to pay regular (quarterly) dividends from year 2 of the operation however the size and timing of the dividends cannot be guaranteed. Exit via IPO, Trade sale or merger will be assed continuously subject to shareholder approval.
Investment Highlights
• Near term gold production & revenues
- High grade, (>11g/t Shallow depths current 150m)
- Very Low Capex < $5m
- Production to begin within ~six months of funding
• Projected revenue over 5 years of A$228m –A$286m
• 5 year Free Cash Flow Pre Tax NPV8 of ~A$113m - A$165m
• High margin, low AISC sub $2,000 oz
• High exploration prospectivity
• Operationally experienced Board & Management
• Planned regular dividend payments from Yr 2
• Investment Required $5M for ~29% of IHG
• Valuation Pre Money ~$12.50m
THE OFFER IS FOR SOPHISTICATED AND PROFESSIONAL S.708 INVESTORS ONLY.
For more information please contact
Gavan Farley, Senior Corporate Adviser - Novus Capital Limited
M: +61 420 520 300 E:gavan.farley@novuscapital.com.au
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