Catalyst Metals makes strong ASX debut
Catalyst Metals Ltd has debuted on the Australian Stock Exchange (ASX) at a 37.5 per cent premium to its issue price, as it prepares to explore its West Australian molybdenum project.
The Perth-based molybdenum explorer hit the boards on Wednesday at 27.5 cents – a 7.5 cent premium to its 20 cent issue price – and rose to a high of 29 cents before finishing its first day of trading at 28 cents.
A total of 515,170 shares valued at $135,857 changed hands.
Catalyst chairman Howard Dawson said he was very pleased with the company’s first day of trading.
“The main thing was there wasn’t too much selling, which means investors are going to give us a chance to get the drilling through and see what it amounts to,” he said.
“It’s a decent discovery and molybdenum prices are holding up well.”
Mr Dawson said Catalyst’s share market debut was also helped by an announcement from fellow molybdenum explorer Moly Mines Ltd upgrading its resource, attracting investor interest to the sector.
Catalyst’s initial public offer (IPO), which closed oversubscribed, raised $3.2 million from the issue of 16 million shares at an issue price of 20 cents each.
The capital raised in the IPO will be used to fund the exploration of the Minnie Creek project, north-east of Carnarvon in Western Australia.
The 872 square-kilometre project contains the Minnie Springs prospect, a molybdenum discovery made in 1995.
Catalyst is planning to start drilling by September or October at the latest.
Molybdenum is a hard, silvery-white metallic element used to toughen alloy steels and soften tungsten alloy.
Â© 2006 AAP