Magnetic Resources (ASX:MAU) has decided to spin out its non-gold assets into a new listed entity called Aureole Resources.
The company has appointed Ventnor Securities as lead manager to the initial public offering (IPO) of Aureole Resources, which will keep the non-gold assets, being predominantly the nickel and rare earth tenements held around the Julimar area of Western Australia.
Aureole proposes to undertake an IPO to raise a minimum of $5 million and up to $7 million at an issue price of $0.20 per share. The proposed IPO will include a priority offer to eligible Magnetic shareholders as well as a public offer to new investors.
The spin-out will enable Magnetic to focus its attention on the ongoing development of its gold assets located around the Laverton region of Western Australia, while simultaneously providing an opportunity for investors to gain increased exposure to the company’s earlier stage nickel and rare earth exploration projects in Western Australia.
The proposed spin-off assets include 6 projects covering 523km-square of ground including, Benjabbering (E70/5537), Goddard (E70/5538), Trayning (E70/5534), Trayning West (E70/6304), and Korrelocking (E70/5771) and Koorda (E70/6305). All tenements are within 90km out to 150km northeast of Chalice Gold Mines’ Julimar Ni-Pd Discovery.
All tenements have been selected based on aeromagnetic interpretation after noting the structural setting of the Julimar complex and the Gonneville mineralised discrete magnetic mineralised Ni-Cu-PGE rich intrusion.
Magnetic will seek shareholder approval for the spin-out of the nickel and rare earths to Aureole at an upcoming general meeting to be held shortly.
“We have decided to spin off these assets to allow for their development as stand-alone assets while we focus on the development of our gold assets”
Commenting on the spin off, Managing Director George Sakalidis says: “We have decided to spin off these assets to allow for their development as stand-alone assets while we focus on the development of our gold assets.
The nickel and rare earth assets have significant potential for a major discovery which Magnetic shareholders will continue to maintain exposure to through the large shareholding that Magnetic will continue to hold.”
Write to Adam Orlando at Mining.com.au
Images: iStock
