Diversified financials group Raffles Capital (ASX:RAF) has revealed it majority-owned subsidiary subsidiary Precious Metal Resources (PMR) intends to go public with an IPO.
PMR plans for an initial public offering of 10 million shares at $0.20 per share, to raise $2 million.
The company will use the funds to accelerate mineral exploration efforts at three tenements at Halls Peak, southeast of Armidale, NSW.
The site is believed to be rich in small but high-grade copper, lead, zinc and silver deposits, and has an unidentified amount of gold.
Raffles currently owns 73.33% of PMR, having contributed $1.25 million in capital. In a statement, the company said its directors agree that an IPO and separate ASX listing is an appropriate course of action.
Existing PMR shareholders will be entitled to take up a guaranteed allotment of 10,000 shares for $2,000.
Raffles operates a mineral exploration project origination business, whereby it secures tenure or project control and then contributes seed capital to help develop the project.
The company also provides corporate advisory services, and plans to expand into litigation funding through new subsidiary RafflesLaw.
RAF shares grew 6.25% on Wednesday to $0.510.