The company plans to list on the ASX next month.
Megados Ethiopian permits cover an area of 511 square kilometres with the geological potential to host gold deposits of significant scale.
“Ethiopia is geologically highly prospective”
Ethiopia is a landlocked country in north-east Africa and its Prime Minister Abiy Ahmed Ali was awarded the 2019 Nobel Peace Prize for his efforts to achieve peace and international cooperation.
Megado managing director Michael Gumbley said the companys strategy also includes identifying and potentially acquiring other gold projects in Ethiopia.
He said: “Ethiopia is geologically highly prospective for deposits of significant scale and contains a world-class greenstone geological terrane within the prolific Arabian-Nubian Shield.”
Initial public offer details
As a part its initial public offer (IPO), Megado is offering 25 million ordinary shares at a price of 20 cents a share to raise a minimum of $5 million with allowance for an additional $ 1 million in case of oversubscription.
The company expects to list on the ASX in the second half of October and said there is already strong pre-listing interest for the IPO, which is being managed by Canaccord Genuity.
Upon listing, Megado will have a minimum of 66.5 million ordinary shares on issue, valuing the company at $13.3 million.
“Premium land position”
The company was established in March last year with a focus to build a portfolio of Ethiopian gold projects and has already identified numerous high-priority gold targets.
Megado has also engaged a drilling contractor to start drilling immediately post the IPO and within the fourth quarter of 2020.
Gumbley said: “Critically, Megado has a premium land position immediately along strike from Ethiopias only modern gold mines, Lega Dembi and Sakaro (having more than 3 million ounces of gold), covers the same fertile greenstone host rocks and structural setting, in addition to an asset located proximal to Kefis more than 1.5 million ounces of gold Tulu Kapi deposit.”
Assembling an experienced team
The companys African operations are further boosted by the appointment of Chris Bowden, who has over five years of experience in gold explorations projects in the country, as executive director.