PERTH (miningweekly.com) – Junior RareX has announced plans to spin-out its nickel/copper/platinum-group element (PGE) and gold assets into a separately listed company.
RareX said on Friday that the decision to pursue a demerger and separate listing for its Byro East nickel/copper/PGE and Orange East gold projects, in Western Australia and New South Wales respectively, followed a strategic review of the company’s asset base in light of the recent exploration success at the Cummins Range rare earths project, also in Western Australia.
“The board considers that, given the company’s strategic focus on the continued exploration and potential development of the Cummins Range project, the value of Orange East and Byro East is currently not reflected in RareX’s share price and it would be beneficial to the company and its shareholders that the projects be housed in a separately listed vehicle specifically focused on progressing their exploration and development,” RareX said in a statement.
The spin-out of the base and precious metal assets into a newly listed vehicle known as Cosmos Exploration, would be subject to shareholder approval.
It is anticipated that Cosmos will acquire the Byro East and Orange East projects, and will seek a listing on the ASX during 2021 through an initial public offering, with RareX shareholders entitled to participate in a priority offer.