New Capital Link is pleased to provide an exciting update on InterGroup Mining Limited (IGM), a company we previously introduced to our investors. IGM has made significant strides in its journey towards becoming a publicly listed entity, and we are thrilled to share these developments with you.
Major Steps Towards Public Listing
InterGroup Mining has signed a Letter of Intent with Transition Opportunities Corp (TSXV: TOP.P) to complete a reverse takeover (RTO) on the Canadian TSXV stock exchange. This strategic move positions IGM for listing on the TSXV and sets the stage for a potential dual listing on the NYSE in the future.
The company is targeting a listing in the fourth quarter of 2024, demonstrating their commitment to growth and shareholder value. This timeline aligns with IGM’s strategic goals and market readiness.
Strategic Rationale for TSXV Listing
IGM’s choice of the TSXV for its initial listing is driven by several key factors:
- Global Exposure: The TSXV is renowned for its substantial mining company listings, representing 40% of the global mining market.
- Dual Listing Potential: The RTO facilitates a smoother transition to pursue a future dual listing on the NYSE, offering broader visibility and liquidity.
- Valuation and Timing: The anticipated market valuation is expected to align with previous shareholder updates, supporting IGM’s strategic growth plans.
- Minimal Dilution: This listing route ensures cash preservation and is expected to result in only 2-3% dilution.
Regulatory Progress and Mining Evaluation
IGM is currently converting its JORC compliant reports to the North American 43-101 Technical Report standard. The company is also undergoing necessary audits to meet regulatory requirements.
A recent Scoping Study confirmed an After-Tax Net Present Value(5%) (NPV) of AUD$3.1B (CAD$2.72B) with a 35% Internal Rate of Return (IRR), based on only ~5% of the concession area. IGM is working towards completing a Definitive Feasibility Study and plans to evaluate gold deposits and other critical minerals in an expanded drilling program.
Financial Backing and Capital Raise
Post-listing, IGM expects to access AUD$96M in support from GEM Yield, New York, and an additional AUD$15M from a Middle East family office. The company is also conducting a private placement to raise capital from various sources.
IGM is currently offering a limited capital raise of AUD$6 million on a first-come, first-serve basis, providing an opportunity for existing shareholders to increase their investment at a discounted pre-IPO rate.
Future NYSE Listing Plans
IGM’s strategy includes a future dual listing on the NYSE, timed to coincide with the commencement of production activities in kaolin and expected revenues from gold and critical mineral deposits. This approach aims to capitalize on anticipated share price increases driven by operational milestones.
New Capital Link’s Perspective
As the introducing party for InterGroup Mining, New Capital Link is excited about the company’s progress and future prospects. We believe IGM’s strategic moves towards public listing and its focus on essential minerals for a net-zero emissions world position it well for future growth.
We will continue to monitor IGM’s progress and provide updates to our investors as this exciting journey unfolds. As always, we remind our investors that while these developments are promising, all investments carry risks, and we encourage thorough due diligence.
For more information about InterGroup Mining and its projects, please visit www.igmining.com.
Stay tuned for further updates from New Capital Link as we continue to bring innovative investment opportunities to our valued clients.
