Everlast Minerals Targets $6M Raising with 30M Shares at 20 Cents Each

Overview of the Offer

Everlast Minerals Ltd has launched a Replacement Prospectus for an initial public offering (IPO) on the Australian Securities Exchange (ASX), aiming to raise between $4 million and $6 million through the issuance of 20 to 30 million shares priced at $0.20 each. Alongside this Public Offer, the company is also issuing performance rights and options to senior management, directors, eligible shareholders, and the lead manager as part of secondary offers.

The Public Offer is not underwritten and is conditional on achieving the minimum subscription and satisfying ASX admission requirements. The company expects to list under the proposed ASX code EM8, with shares anticipated to commence trading shortly after the offer closes.

Project Portfolio and Development Focus

Everlast Minerals holds a portfolio of mineral sands projects in Bangladesh, with the primary focus on advancing the Gaibandha Mineral Sands Project. This project comprises three mining leases covering 2,395 hectares along the Brahmaputra-Jamuna River in northern Bangladesh. The company has completed extensive exploration, including a drilling program and channel sampling, which has been independently verified by GM Minerals Consultants Pty Ltd (Geos Mining).

The Independent Geologists Report confirms an indicated and inferred mineral resource totaling approximately 375 million tonnes, albeit with relatively low grades of heavy minerals such as ilmenite, rutile, zircon, garnet, and magnetite. The company is currently conducting trial mining and processing activities, with plans to scale up to commercial production subject to successful outcomes and further funding.

Financial Position and Use of Funds

Everlast Minerals is an early-stage mineral sands exploration and development company that has incurred losses to date. The proceeds from the IPO will be primarily allocated to mining equipment acquisition, operating expenses for the Gaibandha project, exploration of other projects such as Kurigram, and general working capital including director and senior management remuneration.

The company’s pro forma financial statements indicate net assets of approximately $8.4 million post-IPO on a minimum subscription basis, with sufficient capital to meet its stated objectives over the next two years. However, further funding will likely be required to fully develop the projects and support ongoing operations.

Risks and Market Considerations

Investors should be aware that Everlast Minerals operates in a high-risk sector with significant exploration, development, operational, political, and market risks. The projects are located in an emerging market with recent political changes in Bangladesh, which may impact regulatory and operational conditions.

The mineral sands industry is subject to commodity price volatility and environmental regulations. The Gaibandha project faces additional challenges due to the low grades of certain heavy minerals and potential impurities that could affect product quality and marketability. Offtake agreements remain non-binding, and the company has yet to secure formal contracts for future production.

Despite these risks, the company has developed proprietary technology and established local partnerships to support its operations. The IPO will enhance the company’s profile and provide access to capital markets to pursue its growth strategy.

Governance and Management

Everlast Minerals is governed by a board of three directors, including Executive Chairperson Paul Qian, who is also the major shareholder. The company has engaged experienced senior management in Bangladesh to oversee operations. Remuneration and incentive plans, including performance rights, are designed to align management interests with shareholder value creation.

The company has also adopted comprehensive corporate governance policies consistent with ASX recommendations, including risk management, ethical standards, and environmental, social, and governance (ESG) commitments.