Global Lithium Resources (ASX:GL1) is launching an initial public offering (IPO) process to spin-out its Marble Bar Gold Project in Western Australia into newly created company MB Gold.
The IPO is targeted to be completed in Q1 2026, with MB Gold to list on the Australian Securities Exchange (ASX) under the ticker code MBG.
Both companies have entered into an implementation agreement which, subject to completing certain conditions and the IPO, grants MB Gold the right to acquire certain tenements and 100% interest in the precious and base metal mineral rights for prospective gold ground around the Marble Bar Project.
MB Gold will undertake an IPO and seek to raise $6 million through the issue of 30 million shares at $0.20 each. Ventnor Securities has been appointed as lead manager to the IPO.
As part of the deal, MB Gold will issue 8 million shares to Global Lithium, as well as pay $900,000 cash. Following completion, Global Lithium will own 18% of MB Gold.
Managing Director Dianmin Chen says the decision to spin-out the gold assets was aimed at realising value from the assets while reducing tenement holding costs.
Global Lithium will retain the core lithium tenements and battery mineral rights at the Marble Bar Lithium Project, which contains an existing resource of 18 million tonnes @ 1% lithium oxide.
The assets being demerged include the Twin Veins and Douglas Find prospects, located at the northern end of the Marble Bar Project, covering 515km2.
Global Lithium Resources is a Western Australian lithium explorer and developer focused on its Manna and Marble Bar projects. The company has defined a total indicated and inferred resource of 69.9 million tonnes @ 1% lithium oxide at both projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Global Lithium Resources
