PERTH (miningweekly.com) – ASX-listed Metalicity on Tuesday revealed more details around the spin-off of its Admiral Bay, Napier Range and Emanuel Range zinc projects into a newly minted subsidiary.
Metalicity told shareholders that the company would vend the zinc projects into Kimberley Mining in exchange for C$32.5-million cash and shares, with up to C$12.5-million of the purchase fee to be paid in cash, and around 25-million shares in Kimberley, subject to regulatory approvals.
Metalicity would retain a 40% interest in the expanded capital of Kimberley Mining, post an initial public offering (IPO) on the TSX, and a targeted C$25-million capital raising. The funds will be used to advance drilling and feasibility work on the Admiral Bay zinc project.
“The terms agreed are a win-win for both Metalicity and Kimberley Mining. Following Metalicity shareholder approval, Kimberley Mining will be well established to rapidly progress the IPO process, which will best allow the progression of Admiral Bay in a market of higher valuations for base metals projects of Admiral Bay’s scale and in an increasingly tight zinc market,” said Metalicity MD Matt Gauci.
The Kimberley Mining IPO is planned for the September quarter of this year.