PERTH (miningweekly.com) – The shareholders of mineral sands miner Iluka have voted in favour of the demerger of Deterra Royalties.
The company in September announced plans to demerge the royalty business, which will result in two independently listed ASX companies.
Iluka would retain its portfolio of mineral sands projects, while Deterra would become the largest independent royalty company listed on the ASX, with royalties held over BHP-operated Mining Areas C, in the Pilbara, as its cornerstone asset.
With the demerger now approved, eligible shareholders would be entitled to receive one share in Deterra for every Iluka share held at the record date, with Iluka to retain a minority shareholding interest of 20% in Deterra as a long-term investment.
“We are pleased to have received shareholder approval for the demerger of Deterra from Iluka. This is an important milestone in separating our two distinct businesses and setting up Iluka and Deterra for future success,” said Iluka chairperson Greg Martin on Friday.
The demerger will become effective on October 21, and Deterra is expected to start share trading on the ASX by October 23. Iluka will trade on an ex-entitlement basis from October 23.