The Metal Hawk Limited (ASX: MHK) share price has shined on its ASX debut, and is currently trading at 27 cents – a 35% premium to its initial public offering (IPO) price. The mining company has, earlier today, floated its shares on the ASX and raised $5.5 million by issuing them at 20 cents each.
More about the Metal Hawk IPO
Metal Hawk is a 12-month old company that owns three gold projects in Western Australia’s prolific eastern goldfields region – namely Kanowna East, Emu Lake and Clinker Hill. Prior to the IPO, the company had secured the non-lithium rights for the Emu Lake exploration from Lithium Australia (ASX: LIT).
Metal Hawk’s portfolio also comprises the Viking gold project – in which it recently entered a joint venture with Chalice Gold Mines Limited (ASX: CHN), allowing Chalice to earn up to 70% equity by sole funding the project over 4.5 years. This enabled the project to continue without depleting Metal Hawk’s funds.
Metal Hawk has chosen to float this year to take advantage of strong price performances in gold and nickel sulphides. Although the gold price has primarily been driven by the shift to safe assets caused by the pandemic, the nickel market is mainly fueled by expectations of increasing demand for electric vehicle batteries in the future.
More background on Metal Hawk
Metal Hawk is a Western Australian mineral exploration company focused on early stage discovery of gold and nickel sulphides. Metal Hawk holds interests in a number of quality projects in the Eastern Goldfields and Albany Fraser regions.
The company recently signed an earn-in and joint venture agreement with Western Areas Ltd (ASX: WSA), whereby Western Areas has the right to earn a 75% interest in three of Metal Hawk’s projects; Kanowna East, Emu Lake and Fraser South by spending $7 million over 5 years.
As mentioned, in September 2019, Metal Hawk also signed an option and earn-in agreement with Chalice Gold Mines under which Chalice can earn up to 70% interest in the Viking Gold project by spending $2.75 million on exploration over 4.5 years.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- 2 ASX shares making all-time highs today
- Why Aristocrat Leisure, Chalice Gold, Westpac, & Whitehaven Coal shares are charging higher
- Why the Chalice Gold Mines (ASX:CHN) share price is rocketing 16% higher
- Here are the 10 most shorted shares on the ASX
- These are the 10 most shorted shares on the ASX
Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Metal Hawk (ASX:MHK) share price surges 35% on IPO debut appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/393ltTI
Leave a Reply