PERTH (miningweekly.com) – Mineral sands developer Sheffield Resources has announced plans to demerge its gold and base metals assets into an ASX-listed company.
The assets, which are currently held by subsidiary Carawine Resources, include the Jamieson gold/copper/silver/zinc project, in Victoria, and the Oakover and Paterson copper/cobalt projects, in Western Australia, as well as the Fraser Range nickel/copper/cobalt project, in the same state.
“The proposed demerger is consistent with Sheffield’s strategic focus on developing the world class Thunderbird mineral sands project, which has the potential to transform Sheffield into a Tier 1 mineral sands producer,” said Sheffield MD Bruce McFadzean.
“With Thunderbird being Sheffield’s primary focus, the board considers it appropriate to spin out the high-quality Carawine assets into an independent exploration company where their true value can be realised.”
Subject to shareholder approval and Carawine receiving ASX admittance, Sheffield will demerge the subsidiary by way of distributing 20-million shares to eligible Sheffield shareholders on a pro-rata basis. Based on the company’s current 182.2-million shares on issue, the spin-out ratio would be around one Carawine share for every nine Sheffield shares held.
The initial public offering of Carawine is expected to raise between A$5-million and A$7-million, with between 25-million and 35-million shares on offer, at a price of 20c each.
In addition, one free attaching loyalty option will be issued for every three Carawine shares, vesting six months from Carawine’s listing on the ASX.
Sheffield will be seeking shareholder approval for the demerger at its annual general meeting scheduled for November 22.
Edited by: Creamer Media Reporter
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