PERTH (miningweekly.com) – ASX-listed Mayur Resources has completed the spin-out of its Papua New Guinea copper and gold assets into a TSX-V listed company called Adyton Resources Corporation.
More than C$10.5-million was raised through the spin-out through a syndicate of northern hemisphere banks, which valued the newly listed Adyton at some C$38-million.
Adyton shares started trading on the TSX-V on February 24 at between 26c and 40c a share.
“This transaction has demonstrated the intrinsic value of Mayur’s copper/gold assets that the board and major shareholders believed the market was not fully valuing. Independent brokers research, prior to the pre spin-out, was assessing an average of 7.5% of Mayur’s share price target to the value of our copper/gold assets,” said MD Paul Mulder.
“Post spin-out, this is now 24% to 38%, based on the last trading range, representing a 3.3 to 5 time uplift. The mark to market look through valuation now provides a clear valuation for Mayur’s holding in Adyton going forward.”
Mayur intends to distribute the Adyton shares to its own shareholders through an in-specie distribution, with some 75% of the holding to be distributed over the next 12 months, while the remaining 25% shareholding would be distributed six months later.
“We have learned a lot from this initial spin-out and will apply this knowledge as we look to unlock further value from our portfolio via our ongoing disaggregation strategy.
“The Adyton spin-out has confirmed that Mayur has the capability to complete value creating opportunities for shareholders and we look forward to updating the market in coming weeks as we continue to deliver on this strategy,” said Mulder.