PERTH (miningweekly.com) – ASX-listed Great Boulder Resources has announced plans to demerge the Yamarna base metals project, in Western Australia, into a separately listed base metals business known as Cosmo Metals.

Yamarna is a multi-commodity project with significant potential for magmatic copper/nickel/cobalt/platinum group mineralisation some 130 km northeast of Laverton. The project consists of nine exploration licences and two prospecting leases, and all the tenements are granted with the exception of one exploration licence and one prospecting licence.

“This is an exciting transaction for Great Boulder and our shareholders. Through a strategic review, where the board considered a wide range of options, we concluded the most value accretive option for our shareholders would be to establish an independent entity with a dedicated team of experienced professionals to advance the Yamarna project to its full potential, while allowing Great Boulder to focus on its core assets at Side Well and Whiteheads,” said Great Boulder MD Andrew Paterson.

“The transaction also enables Great Boulder and our shareholders to participate in the upside potential of the Yamarna project with Great Boulder retaining circa 50% of the new entity and by providing a priority offering in the new entity to existing shareholders.”

Under the proposed demerger, Cosmo would acquire all of the Yamarna tements from Great Boulder in return for 25-million fully paid ordinary shares, at a deemed price of 20c each.

Cosmo would also undertake an initial public offering (IPO) to raise at least A$5-million, through the issue of a further 25-million shares to the public at a price of 20c each, and a maximum of A$7-million through the issue of 35-million shares.

Eligible Great Boulder shareholders will receive a priority offer entitlement to participate in the IPO.

Great Boulder shareholders are expected to vote on the demerger at the company’s annual general meeting in late October or early November.