Canadian polymetallic developer BMC Minerals has lodged a prospectus with the Australian Securities and Investments Commission for an initial public offering (IPO) to raise A$100-million, paving the way for a planned listing on the ASX in December.

Funds raised will advance exploration, permitting and optimisation studies at the company’s 100%-owned Kudz Ze Kayah (KZK) project in Canada’s Yukon territory.

The 372 km² KZK project hosts the ABM and Kona deposits, with total mineral resources of 27.9-million tonnes, and ore reserves of 15.7-million tonnes at the ABM deposit grading 138 g/t silver, 1.3 g/t gold, 0.9% copper, 5.8% zinc and 1.7% lead.

BMC plans to develop a two-million-tonne-a-year operation at the ABM mine, with about 89% of ore extracted from openpits and a small underground section targeting the deeper Krakatoa Zone. Based on ore reserves, the mine is expected to operate for nine years, producing an average of 32-million ounces of silver-equivalent (AgEq) a year at all-in sustaining costs below $12/oz silver-equivalent.

The company says the ABM mine would rank as Canada’s largest silver and zinc producer, and among the top 15 copper producers nationally, producing three separate concentrates – silver/gold, copper and zinc – under secured offtake agreements for the first five years of production.

A feasibility study has assessed the ABM mine’s pre-tax net present value at $835-million, with a capital payback period of 2.2 years and initial construction costs estimated at $492-million.

BMC MD and CEO Michael McClelland said the company had invested more than $150-million in advancing KZK since 2015, doubling its mineral resource base and progressing approvals toward development readiness.

“KZK is the best polymetallic project I have seen in more than 25 years working in the resource sector,” McClelland said.

“It has the potential to be a globally significant project across all of its commodities and still offers considerable exploration upside within our 100%-owned mineral tenure.

“Lodging the prospectus is an exciting milestone and positions BMC for our next stage of growth. The capital being raised will be invested predominantly in further exploration at KZK, as well as permitting and optimisation studies and general working capital as we progress towards a final investment decision within the next 18 months.”

The prospectus outlines an offer of 43.5-million to 52.6-million CHESS Depositary Interests (CDIs) over shares, at an indicative price range of A$1.90 to A$2.30 per CDI, on a one-for-one basis.

Barrenjoey Markets has been appointed as global coordinator, with Argonaut Securities and Morgans Corporate acting as joint lead managers for the IPO.