Bullabulling Gold (LON:BGL) began trading today after listing on London's AIM market.
After opening at a level of 26 pence, the firm's shares were trading at 24.75 pence, as at 10.05am.
The firm is the new holding company for the project of the same name in Western Australia and admission of BGL onto the Australian Securities Exchange is expected on March 23.
Partners in the project, GGG Resources (LON:GGG, ASX:GGB) and Auzex Resources (LON:AZX) agreed to merge last year and place Bullabulling into a new dual-listed joint venture company.
Shareholders ratified the move earlier this year.
GGG Resources is now a 100 per cent owned subsidiary of the new entity.
BGL, with Brett Lambert as the new managing director, is to acquire the remaining shares in Auzex that GGG does not already own when the Australian Scheme of Arrangement becomes effective.
According to a resource estimate, updated last month, the project contains 3.2 million ounces of gold, with 102 million tonnes of ore at 0.96 grams per tonne gold. Of the total, 2.1 million ounces are in the indicated category.
In a note today, broker Westhouse said: BGL’s investment case has been simplified and de-risked by the consolidation of ownership, by the new management and board structure and through the recent resource upgrade.
"There is the potential for further positive newsflow in the coming months from a resource update from the Gibraltar and Laterite Dumps zones, which were not included in the 3.2Moz estimate, from additional drilling results at Gibraltar and Deeps Exploration programmes and from the PFS."