PERTH (miningweekly.com) – Junior Ardea Resources will spin-out its Lachlan Fold Belt gold and base metal tenements, in New South Wales, into a new vehicle named Godolphin Resources.
In an initial public offering (IPO), existing Ardea shareholders will receive an in-specie distribution of 30-million Godolphin vendor shares at nil costs, as well as a priority right to subscribe for IPO shares.
Godolphin will issue up to 40-million new shares under the IPO, at an issue price of 20c each, raising a minimum of up to A$4.5-million and a maximum of A$8-million.
Godolphin will own potential openpit gold deposits at Lewis Ponds and Mount Aubrey as near-term development opportunities, and had longer-term potential for discovery of bulk tonnage mineral assets.
Godolphin’s focus in the first two years after its listing will be on the development of new and updated Joint Ore Reserves Committee-compliant mineral resource estimates for four defined targets, including the Lewis Ponds gold/zinc project, the Mount Aubrey gold project, the Yeoval copper/gold project and the Lachlan Mine gold project.
Ardea told shareholders on Tuesday that the spin-out of Godolphin was consistent with the company’s commitment to delivering value for shareholders while facilitating a greater focus on Ardea’s large and high-quality portfolio of West Australian nickel, cobalt and gold assets.