Australian exploration company Jindalee Resources (ASX:JRL) reports it has completed the spin-out and initial public offering (IPO) of Dynamic Metals (ASX:DYM).
The company says the IPO received strong support from Jindalee shareholders and new investors, raising up to a maximum of $7 million and closing oversubscribed.
Dynamic shares allotted under the IPO were issued on 11 January. The newly formed company is expected to start trading on the Australian Securities Exchange (ASX) on 16 January.
the IPO received strong support from Jindalee shareholders and new investors
Jindalee also reports it will hold 12.5 million Dynamic shares (25.5% of Dynamic’s issued capital) post listing, which will provide Jindalee shareholders with an indirect interest in Dynamic’s projects.
Dynamic’s portfolio includes an ‘extensive’ landholding in the Widgiemooltha district, and the Lake Percy Project, which are both considered prospective for lithium, nickel, and gold. Dynamic also holds an 80% interest in the Deep Well Nickel-Copper-PGE Project in Western Australia.
The spin-out of Jindalee’s Australian assets via Dynamic will allow the company to focus on its McDermitt Lithium Project in the US, which is considered a ‘very-large’ and strategically important domestic source of lithium for the US battery industry.
Jindalee Resources is an exploration company focused on the McDermitt project, and the Clayton North Lithium Project in Nevada, US. Australian assets formerly held by the company include the Widgiemooltha Gold-Nickel-Lithium Project in Western Australia, and the Prospect Ridge Magnesite Project in Tasmania.
The company also holds a 20% equity position in the Joyners Find Iron Ore Joint Venture (JV) Project with GWR Group (ASX:GWR) in Western Australia.
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