Warren Mundine’s attempt to raise millions for a new mining company has failed. 

The former politician’s venture into the mining industry as director of Fuse Minerals has faltered significantly, with the company's ambitious $10 million initial public offering (IPO) falling apart. 

Despite extending the offering period multiple times - from an initial two weeks to over four months - Fuse Minerals was unable to meet the legal minimum of $6 million required for its listing on the Australian Securities Exchange (ASX).

The company, established in September 2021, faced critical financial viability issues early on. By June 30 last year, it reported having net current assets of merely $178,749. 

These financial challenges were exacerbated by the hefty costs associated with the IPO, which were projected to range between $900,000 and $1.15 million, including $236,000 in legal fees.

Mundine, a prominent figure who recently campaigned against the Indigenous Voice referendum, had aligned his political influence with the company’s potential success. 

Announced on November 2, shortly after the referendum, his role as chair was intended to boost investor confidence. 

Fuse Minerals aimed to capitalise on Mundine's network, branding him as “The Connection King” in a statement on November 4.

However, by January 24, it became apparent that the IPO was unlikely to succeed as only $1.86 million had been raised, far short of the minimum requirement. 

This shortfall led to the ultimate cancellation of the offer on March 28, rendering the 500,000 shares and 2 million options issued to Mundine as chair effectively worthless. 

Additionally, his anticipated $120,000 annual salary from this role will not materialise.

Public and investor interest remained low despite various promotional efforts, including IPO presentations in Sydney and Perth hosted by Mundine himself. 

The company's prolonged attempt to attract funding was made difficult by the fact that it was yet to generate any revenue or commence basic operational activities such as drilling.

The company's communication about the cancellation of the IPO has been minimal. The withdrawal of its share offer was found deep in a “third supplementary prospectus” dated March 28. 

This document formally withdrew the IPO offer and assured that all application monies received would be returned to applicants as promptly as possible.

The failed IPO represents a significant blow not only to Mundine but also to the entities responsible for managing the IPO; Unified Capital Partners and Defender Asset Management.