PERTH (miningweekly.com) – Gold junior Rox Resources has announced plans to demerge its nickel and base metal assets into a new company called Cannon Resources.
Rox was proposing a 1-for-15 share consolidation prior to the Cannon transaction to simplify its share structure, with the company telling shareholders on Wednesday that eligible Rox shareholders would receive one share in Cannon for every 4.3 Rox shares held, on a post consolidation basis.
“The demerger of Rox’s nickel and base metal assets will allow a crystal-clear focus for Rox to develop Youanmi into a high-grade producing mine, while allowing Rox investors to retain exposure to the nickel and base metal assets through a pro-rata holding in Cannon,” said Rox MD Alex Passmore.
Rox’s nickel assets include the Fisher East and Collurabbie projects in Western Australia. The company believed that there was the potential to expand on the existing resource of 78 000 t of contained nickel metal through the exploration.
The company said on Wednesday that the best outcome for shareholders would be the establishment of a new corporate entity to drive the nickel business.
Rox would seek an ASX listing for Cannon Resources through an initial public offering. The Cannon prospectus will be launched in late April, and will close on May 19.