PERTH (miningweekly.com) – Junior Encounter Resources on Friday unveiled plans to demerge its subsidiary Hamelin Gold into a separately listed entity, holding its West Tanami gold assets.
The company told shareholders on Friday that the demerger would attract stronger investor attention and valuation as a standalone, gold-focused entity, while Encounter would remain focused on its expansive copper portfolio in the Paterson province, the Greater McArthur superbasin, and the West Arunta region.
“With the rapid expansion of Encounter’s copper portfolio, including the major ground acquisitions in the Northern Territory and the recent farm-in agreement decision by BHP, we believe that the time is right to demerge our highly prospective West Tanami gold assets. Importantly, our shareholders will continue to participate in Hamelin via a pro rata in-specie distribution,” said Encounter MD Will Robinson.
“Given the quality of the exploration opportunities within the West Tanami, Hamelin provides an attractive exposure for investors to the systematic modern exploration of this exciting and underexplored belt scale gold project. We also believe Hamelin will attract stronger investor attention and valuation in a standalone entity, while allowing Encounter to maintain its focus on its growing copper portfolio in the Paterson Province in Western Australia, the Greater McArthur superbasin in the Northern Territory and the West Arunta region of Western Australia.”
Encounter would call a shareholder meeting to approve the demerger, and would distribute all Hamelin shares on issue to eligible Encounter shareholders via an in-specie distribution of those shares, pro-rata to their shareholding in Encounter.
Following this, Hamelin would complete a capital raise, including an initial public offering, and would apply for listing on the ASX.