Jupiter plans iron-ore spin-out

28th October 2020 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – The board of ASX-listed Jupiter Mines has approved a demerger of the company’s Central Yilgarn iron-ore assets, and a subsequent initial public offering (IPO).

The demerger will create a separately ASX-listed company that will focus on progressing the development of the Mount Mason direct shipping ore (DSO) hematite project.

A feasibility study on the Mount Mason project was completed in 2012, and an optimisation of the study was undertaken in 2014, until the project was placed on care and maintenance until economic conditions improved and infrastructure access could be secured.

Jupiter on Wednesday said that the demerger of the newly minted company would be achieved through a distribution of new shares in-specie to Jupiter shareholders, in proportion to their existing shareholding in the parent company.

Jupiter shareholders will also be offered the opportunity to acquire further shares in the newly listed company.

Jupiter will retain a minority holding in the new vehicle, and would become a pure-play manganese company following the demerger.

The company said on Wednesday that subject to all approvals, the demerger and listing will be completed in the first quarter of next year.