Talga Gold Limited will be joining the ranks of trading companies at the Australian Securities Exchange on July 8 after it successfully closed its subscription of $5 million initial public offer (IPO).

Under the conditions set on the IPO, the company offered a maximum of 25 million shares at a price of 20 cents each.

The Perth-based company will make its market debut with a total amount of 40.35 million shares and a market capitalization of $8 million.

Talga Gold owns four gold deposits in Western Australia, three of which are situated in the Pilbara region.

Managing director Mark Thompson disclosed on Thursday that the company was ecstatic over the success of the IPO and hoped the Pilbara region would provide greater opportunities for the company's growth.

“The success of the IPO heralds the potential renaissance of the fertile gold enriched structures of the Pilbara as a gold province offering significant opportunity for low tonnage but high margin mines," Mr. Thompson said.

"At current gold prices equivalent to around A$45 a gram, the Pilbara's gold systems offer shallow, high grade, rapidly mineable options that may not have to be large-scale open-pit operations to achieve solid margins."