Australian-owned gold explorer Far East Gold has listed on the ASX after a successful IPO campaign that raised $11.73 million from investors.

The company, which owns six highly prospective tenements across Australia and Indonesia, entered the bourse with approximately 215.82 million shares on issue with a market capitalisation of ~$43 million at the time of its float.

By close of markets on Tuesday the company was trading at $0.285 (+42.5% from the IPO price), bringing the company’s market capitalisation to $61.5 million. 

The deal was co-led by Reach Markets, and generated significant demand from both retail and institutional investors.

Far East Gold chair and co-founder Paul Walker welcomed the listing and said the business will continue to further its work across its six tenements.

“Far East Gold is a company with the right combination of highly skilled people with on-ground experience working on quality projects at the right time,” he said.

“As a junior explorer with advanced and highly prospective projects, we are excited to continue our journey towards making Far East Gold a world-class, Tier 1, multi-billion-dollar mining company and unlock significant value for our shareholders.”

The company will use the funds raised to further explore and develop its six sites, which cover more than 47,000 hectares collectively and have so far undergone 41,500m of completed drilling.

Of these six, the Woyla tenement has garnered particular interest. The project site in Northern Sumatra, Indonesia, covers more than 24,000 hectares and is regarded by Far East Gold as “one of the best undrilled prospects in South-East Asia”.

Early exploratory work at the site has so far indicated bonanza-grade gold deposits, with the latest round of assay results suggesting the project could be comparable to Newcrest’s nearby Gosowong project, a Tier 1 mine that produced more than six million ounces of gold.

The company will be holding an investor briefing on Friday, 1st April, at 12pm (AEDT).  Register here.

Reach Corporate have been engaged by FEG to assist with their investor communications.

Sources

• Far East Gold ASX Announcement, Far East Gold Commences Trading on the ASX
• Far East Gold, WOYLA copper gold project
• ASX, Far East Gold