Godolphin Resources (ASX:GRL) has finalised the capital structure and asset valuation for the proposed IPO of its spinout vehicle, Matrix Critical Minerals Limited.
The update follows the appointment of MST Financial Services as lead manager for the transaction. Godolphin says a separate listing will provide dedicated funding for the Narraburra Rare Earths Project rather than competing for capital alongside its precious and base metals assets, such as the Lewis Ponds Project.
Under the agreed capital structure, the Narraburra asset and its associated exploration licences have been assigned an acquisition value of $12.5 million as part of the proposed transaction. Matrix will issue 62.5 million consideration shares to Godolphin upon the transfer of the project.
The IPO aims to raise between $8 million and $12 million through an offer priced at $0.20 per share.
Godolphin Managing Director Jeneta Owens says the spinout is intended to unlock value from the Narraburra project.
“Narraburra is a substantial, Australian rare earths project with a genuinely differentiated product profile, particularly its yttrium and heavy rare earth content,” Owens says.
“The proposed in-specie distribution will represent a significant return of value to GRL shareholders and allow GRL shareholders to hold Matrix shares directly.”
Godolphin plans to distribute 50 million consideration shares to existing shareholders through a pro-rata, in-specie distribution, equating to about one Matrix share for every 17 Godolphin shares held. It will retain the remaining 12.5 million shares, representing an expected 10–12% stake in Matrix following listing. Eligible shareholders will also be entitled to priority allocation rights in the IPO.
Located near Temora in the Lachlan Fold Belt of New South Wales, Narraburra hosts a JORC 2012-compliant mineral resource estimate of 94.9 million tonnes (Mt) @ 739 parts per million (ppm) total rare earth oxides (TREO).
The estimate comprises an indicated resource of 47.6Mt @ 780ppm TREO and an inferred resource of 47.4Mt @ 698ppm TREO using a 600ppm cut-off grade.
The project also contains a ‘higher-grade’ core of 20Mt @ 1,079ppm TREO. The company says the metallurgical test work indicates the project has the potential to produce a high-purity mixed rare earth carbonate containing elevated levels of yttrium, dysprosium, and terbium.
Godolphin is finalising its in-principle ASX listing application. If Matrix is admitted to the ASX, the company says funds raised through the IPO will support exploration and engineering work at Narraburra in H2 2026.
Write to France Pinzon at Mining.com.au
Images: Godolphin Resources
