PERTH (miningweekly.com) – ASX-listed Jupiter Mines on Monday told shareholders that it has halted the demerger and initial public offering (IPO) of its Central Yilgarn iron-ore (CYIP) assets.
Jupiter in January this year announced plans for the demerger and IPO of these assets into a newly created company called Juno Minerals.
Juno intended to issue 120-million shares to Jupiter in exchange for the CYIP assets and $5-million in seed capital, provided by Jupiter, which will then distribute these shares in-specie to its shareholders.
Jupiter said on Monday that despite overwhelming support for the demerger of Juno, the company had taken the decision to halt the process, as Jupiter shareholder Stitching Pensioenfonds had confirmed that it did not intend to meet the regulatory requirements of the Foreign Investment Review Board, which was a condition of the in-specie distribution and capital reduction.
“The IPO and the potential uplift that would have occurred with the construction of Mount Mason in the near term in this robust iron-ore price market was the optimal structure to release substantial value for Jupiter shareholders,” said CEO Priyank Thapliyal.
“Needless to say, this has been usurped for all of the shareholders by the decision of one shareholder.”
The boards of both Jupiter and Juno were now assessing future options.