PERTH (miningweekly.com) – ASX-listed Neometals has announced plans to demerge its Mt Edwards nickel project, in Western Australia, into a dedicated nickel exploration and development company, to be called Widgie Nickel.

Neometals plans to distribute all of the Widgie Nickel shares on issue to its current shareholder through a capital reduction and in-specie redistribution of those shares, pro rata to their shareholding in Neometals.

Following the completion of the in-specie distribution, Widgie Nickel will complete a capital raise through an underwritten pro rata entitlement offer, and will apply for admission on the ASX.

Neometals is aiming for a listing of Widgie Nickel by the fourth quarter of this year.

“The demerger and return of our Mt Edwards asset offers existing Neometals shareholders the opportunity to realise the inherent long-term value of this exciting development story in a discrete, nickel focused corporate vehicle,” said Neometals MD Chris Reed.

“Widgie Nickel has a number of very exciting deposits located on the Widgiemooltha Dome, a world-class nickel sulphide camp that has hosted more than seven historical nickel mine and hosts Australia’s newest high-grade nickel mine being developed less than 1 km from our southern tenure.

“These assets are highly deserving of their own time and attention, and the recent metallurgical results from just one of the deposits that revealed high grade palladium reporting to concentrate demonstrates just some of what can be achieved with a dedicated focus. Widgie Nickel is strongly leveraged to both the world economic recovery and the electrification of transport which will drive increasing product demand from both the traditional steel and lithium battery sectors,” said Reed.

The Mt Edwards project contains an estimated mineral resource of 162 000 t of contained nickel across 11 deposits. The project spans some 50 km of strike across the Widgiemooltha Dome.

“The Neometals board considers it is the best outcome for shareholders that a new, independent entity is established to devote the technical, human and financial resources that the Mt Edwards project deserves. We are excited by what Widgie Nickel can achieve with the assets,” said Reed.

Ahead of the proposed ASX listing, a board and management team for Widgie Nickel will be assembled.

The demerger will be subject to shareholder approval.