Lemur Resources (ASX: LMR) in the first minutes of public life has traded at $0.19, slightly below the $0.20 IPO price.
Lemur is a very interesting company and is targeting coal in Madagascar, and recently completed a successful oversubscribed IPO which offered 125 million shares at $0.20 to raise A$25 million.
The company holds a number of coal projects in the country, with the initial focus being the Imaloto Coal Project located in the south-west.
Historical exploration conducted in 2008 and 2009 resulted in a JORC Inferred Resource in excess of 175 million tonnes of thermal coal, suitable for export as well as consumption as power station feed stock.
The IPO will now fund the proposed phase three exploration programs, which is targeting the higher confidence category of a Measured Resource, and also an overall increase in confidence that the project can move from the current exploration phase into a producing asset.
Blair Sergeant, managing director, added, "We are initially targeting a measured resource of up to 700 million tonne, up from the current 175 million tonne inferred resource.
“Global demand for coal is currently very strong, and there is no doubt that this was a major factor driving the interest in our recent IPO.”
Importantly for the future development of the company - the board and management team has a proven track record in developing assets in Africa, as well as strong links with regional governments.