Ethiopia-focused gold explorer Megado Gold will, on October 27, list on the ASX for the first time with 71.5-million ordinary shares on issue, following a strongly supported and oversubscribed A$6-million initial public offering (IPO).
Megado’s push into Ethiopia coincides with that country's aspiration to attract increasing international investment in the country’s rich, but underdeveloped, gold sector, with the objective of producing 137 t of gold over the next decade, says Megado.
The explorer is planning to start drilling the first of its priority targets within just two weeks and already has extensive sampling, mapping and trenching under way on its projects.
Megado also expects to double its full-time on-ground geologist team from six to at least 12 in-country employees to accelerate the on-ground review of anomalies and first-pass grassroots exploration across its holdings.
Drill pad preparation is being completed at the first prospect within the Babicho project, with drilling expected to start in early November.
This drilling will initially target a significant 2-km-long gold-in-soil anomaly with outcropping gold-bearing quartz veins. A number of trenches are also planned with work about to start on testing the gold-in-soil anomaly and outcropping veins, as well as numerous other prospects across multiple projects – with the aim being to deliver additional drilling targets.
Following this, drilling will move immediately to the Chakata project, located 5 km along strike from the three-million-ounce Lega Dembi and 600 000 oz Sakaro gold mines.
The Babicho project is one of six Ethiopian gold projects covering an area of more than 700 km2 in total. Five of the projects covering 511 km2 are granted permits, with an additional licence application in train covering an area of about 227 km2.
Megado’s Mormora, Dawa and Chakata projects are 100% controlled by Megado, while the Babicho and Chochi projects are owned 80% in partnership with local Ethiopian partners. The Dermi Dama licence will, once awarded, be 100%-owned by Megado.
Megado MD and CEO Michael Gumbley says a significant number of new targets are being identified by the company's ground teams and a substantial trenching programme is planned with a number of historical trenches being reopened and extended, in addition to numerous new trenches.
“Fundamentally important to us, as emerging gold exploration leaders in Ethiopia, as well as to our success as a company, is building a strong relationship with the local communities and stakeholders around our project areas.”
He adds that the company’s impact investment approach to gold exploration will “create life-changing prosperity” for its local partners, which will, in turn, ensure the success of the company.