Commissioners Gold Limited

Commissioners Gold Limited is an exploration company in a hurry. Five years of solid groundwork and drilling on the Company’s tenements has already been completed, and it is now seeking to delineate a robust gold resource. To deliver on this there can be no substitute for drilling holes.

To fund further drilling, the Company seeks to raise $4,500,000 by the offer of 22,500,000 shares at an issue price of 20 cents per share.

In addition, the Company intends at a later date as a loyalty gesture to offer non-renounceable entitlement Options (and seek listing for those Options) to shareholders who are on the share register at a time to be set by the Board approximately three to five months after the Company’s shares have been listed on the ASX. The non-renounceable entitlements issue of Options will be on the basis of 1 Option for each 3 shares held.

Company Background

Offer Overview
Offer     Commissioners Gold Limited
Issue Price     $0.20 per share
Minimum Investment     $2,000
Amount Sought     $4,500,000
Open Date     7th April 2011
Close Date     25th May 2011
List Date     10th June 2011
Market Capitalisation     $8,966,000
Proposed ASX Code     CGU
InvestSMART will receive a 4% placement fee on all applications bearing the InvestSMART stamp.
Documents & Links…

Download  Prospectus

Request  Request a Prospectus by Post

Download Document  AFR Article 29/04/2011
Download Tips
Contact InvestSMART on 1300 880 160 for more information

The Company name, “Commissioners Gold Limited”, is a tribute to the Gold Commissioners of colonial central west New South Wales. In that geological province (the Eastern Lachlan Fold Belt) there have been exciting recent discoveries like McPhillamys, together with the proving up of projects like Tomingley, Marsden and Dargues Reef. There are presently three major producing gold mines in the Eastern Lachlan: Cadia, Cowal and Northparkes.

Since the 1980s most exploration in the area has concentrated on copper-gold porphyry targets. For a number of reasons the Company’s tenements were largely overlooked during this 1980s “gold rush”. The Directors believe this ground includes a number of obvious exploration targets that can be tested rapidly and cheaply.

The Directors believe the Company’s present portfolio of tenements represent the best potential to enhance shareholder wealth.

Investment Highlights

* Commissioners Gold is a gold exploration company focused on proving up economically viable deposits of gold in the world class Lachlan Fold Belt mineral province of New South Wales
* The Company has rigorously acquired a portfolio of six projects over six tenements, a ground area of over 500 square kilometres
* The Company owns 100% of each project, with the exception of EL 5939 where the Company is earning an initial 50% interest and EL 7702 where the Company is earning an initial 70% interest
* A series of pre-defined drill targets are prepared, with drilling on-going at Oberon (“Black Bullock”) and at Cowarra near Cooma
* Behind this strategy and focus the Company has a well qualified, experienced Board of Directors and a sound project management team
* All Commissioners Gold projects are extremely well located in NSW with electricity, sealed roads and towns nearby.

Exploration Strategy

* build on the JORC-compliant Inferred gold resource at Cowarra
* focus on a limited number of quality projects – funds not dissipated by being spread too thinly
* exploration based on science not industry fashion – in target areas neglected by other explorers
* prospective projects – providing the option to farm out on favourable terms as a project is advanced
* explore sequentially – to maintain a pipeline of projects
* acquire additional projects mainly by application – spend funds on exploration rather than paying speculative vendors/prospectors, and
* lean overheads – focus both geologically and geographically, streamline administration and put the money into drilling holes in well thought out targets

This strategy is designed to build long term wealth for shareholders by advancing projects to a commercial development stage through well funded exploration.

This focused approach will develop specific company expertise that will produce a competitive advantage over other similar sized explorers.

The Rise and Rise of Gold

Over the last few years, Gold has been a standout performer throughout the turmoil in global markets. Gold is a precious metal with numerous uses, including coinage, jewellery, luxury goods, electronics and medicine. Gold is also highly sought after for its investment value, particularly in times of market crises such as inflation, war, currency failures and stock market declines.

As can be seen in the below chart, the price of gold has increased substantially over the last decade, providing substantial returns for the shareholders of gold explorers that uncover sizable resources on their tenements.

Sourced & published by Henry Sapiecha

Tags: , , , ,

Leave a Reply