Australian mineral exploration company Strickland Metals (ASX:STK) reports it has received heritage clearance for the Iroquois Zinc-Lead Project located in Western Australia.
The company says this clearance covers Iroquois and a number of surrounding targets to the northwest and will allow for ‘extensive’ drill testing of the main Iroquois structure. This is inclusive of the interpreted feeder zone, as well as the interpreted easterly extension of the primary Zn-Pb mineralisation which has not been drill tested.
Strickland reports this heritage clearance is a component of a proposed demerger of Iroquois split 80% to 20% respectively between Strickland and Gibb River Diamonds (ASX:GIB), as well as the Bryah Basin Project. The company states this demerger will create a dedicated Western Australia-focused base metals exploration company and will enable it to focus its resources on developing its flagship Yandal Gold Project.
Commenting on the proposed demerger, Strickland Metals Chief Executive Officer (CEO) Andrew Bray says: “Work is ‘significantly’ well advanced on the proposed demerger of our Iroquois and Bryah projects.
Drafting the prospectus is well advanced, with the main outstanding lead time item being obtaining Demerger Relief from the Australian Taxation Office (ATO). It is expected the application for Demerger Relief will be lodged during the current quarter. The initial public offering (IPO) is expected to be completed during the current half-year period.
“Of significant importance to the demerger process was the company obtaining heritage clearance for the proposed drill programs at Iroquois and some of the surrounding targets”
Of significant importance to the demerger process was the company obtaining heritage clearance for the proposed drill programs at Iroquois and some of the surrounding targets. This clearance will permit the DemergerCo to immediately undertake substantial drill programs at Iroquois upon completion of the IPO.
Work has also advanced on the composition of the proposed new board and management team. A further update will be provided to the market once a final decision has been made.
As announced on 21 October 2022, Strickland plans to conduct a full in-specie distribution of the shares of DemergerCo. This means all Strickland shareholders (at the record date, which will be determined by the board in due course) will receive pro-rata shares (at no cost) in the new company.
Existing shareholders will also receive priority allocations in the IPO capital raise.”
Strickland reports it has appointed a legal advisor, a lead broker, a tax advisor, a geological consultant, as well as a firm to conduct an investigative accountants report.
In October last year, Strickland completed a strategic review of its portfolio and decided the ‘optimal’ strategy to maximise value for Iroquois and Bryah was to conduct a demerger of the assets via a separate IPO. The company believes both projects are undervalued within the current company structure.
Strickland expects this demerger process to be completed during the first half of this year pending approval from the company’s board.
The Iroquois project is located along strike from the Earaheedy Project operated by Rumble Resources (ASX:RTR) in the Earaheedy basin region of Western Australia.
Meanwhile, the Bryah Basin Project is located about 80km north of Meekatharra in the Gascoyne region of Western Australia and is considered prospective for copper (Cu) and gold (Au) mineralisation.
Strickland Metals is an ASX-listed mineral exploration company with a portfolio of gold and copper assets including the Horse Well Gold Joint Venture (JV) Project, in which the company holds a 60% interest, as well as the Iroquois, Bryah and Paterson tenements.
Images: Strickland Metals Ltd
