Strategic Minerals (LON:SML) has become the latest recruit to the Alternative Investment Market’s army of mining exploration companies, with an IPO that has netted it £750,000. Strategic is an iron ore exploration company with assets in Queensland, Australia, where it believes that a new iron production hub can be rapidly developed to serve steel markets in Asia.

Strategic holds an exploration permit over 2,100 hectares at its flagship project, known as the “Tenement”, which lies approximately 40km south-west of Townsville. The Tenement and surrounding area are located on a rich belt of deposits. Historic production on the site was carried out by North Australian Cement Ltd in an area known as the Iron Glen Pit. NACL used the magnetite mined in the pit in the production of cement but ceased operations there in 1969. The Tenement covers a known area of magnetite, although, to date, the area has received only superficial investigation. Strategic is looking to build on previous geological surveys and investigate further the potential of the area.

Strategic placed 15 million new shares on admission to AIM, capitalising the company at £14.8 million. It now intends to use the UK equity and debt markets to develop its magnetite iron ore exploration project. Located in a region with substantial existing infrastructure for transportation of bulk materials to the major shipping lanes off the Eastern Coast, the company believes that a new iron production hub can be rapidly developed to serve steel markets in Asia. It also wants to look at building value from other precious and base metals projects in the region to provide near term value for shareholders.

Following a Competent Persons Report of the Tenement, Strategic will carry out a detailed geological mapping and sampling programme with follow-up drilling and coring beginning in July of this year. If those results prove positive, the company will commission a calculation of the reserve base of available magnetite. If sufficient tonnage is available, and the quality remains as indicated in the preliminary drilling programme and no deleterious contaminants become obvious, then a feasibility study of the project will be undertaken. Strategic’s chief executive and chief financial officer, Patrick Griffiths, was a director and general manager of the Australian based subsidiaries of AIM quoted Sirius Minerals (LON:SXX) before joining Iron Glen.

Steven Sanders, the chairman of Strategic, said: “Previous ground…

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